Galaxy Securities: The valuation of the pharmaceutical sector has recently shown a significant structural repair trend

Galaxy Securities research report believes that the pharmaceutical sector has undergone a long period of valuation adjustment and has recently shown a significant structural repair trend. However, the holding level of public funds remains below historical averages. In 2025, under the policy background supporting the development of commercial insurance, there is hope for marginal improvement on the payment side, and innovative drugs and medical devices are expected to benefit. 1) Continued optimism for pharmaceutical innovation: In the second half of the year, the business development of innovative drugs will continue, and the trend of interest rate cuts by major global central banks is expected to further boost valuations. 2) Pharmaceutical investment and financing are expected to recover: The warming of the secondary market will drive a rebound in investment and financing in the primary market, with continued improvement in CXO and upstream prosperity. 3) Medical devices are bottoming out and recovering: Tendering data has shown improvement, and the backlog of demand for trade-ins is gradually being released