Taikang raises stake in HENLIUS, insurance capital increases investment in innovative drugs

On November 26, Taikang Life announced a stake increase, revealing that the company has increased its holdings in HENLIUS by 518,500 shares through its Hong Kong subsidiary, raising its shareholding ratio to 5.1% of its H shares.

Before this stake increase, Taikang Life already held 4.78% equity in HENLIUS H shares;

Based on the closing price on November 20, the book balance of HENLIUS in Taikang Life's traditional account and individual red account was 193 million yuan and 320 million yuan, respectively, accounting for 0.03% of the total assets at the end of the previous quarter.

Although there have been pharmaceutical sector targets in this round of "stake increase wave" by insurance funds, early on, they were mainly focused on dividend attributes;

For example, New China Life had previously increased its stake in Sinopharm and Shanghai Pharmaceuticals, indicating a "long-term positive outlook on the future development prospects of the healthcare industry."

Xinfeng noted that this year, whether it was China Pacific Insurance increasing its stake in Dongyang Sunshine Pharmaceutical or Taikang Life increasing its stake in HENLIUS, it reflected the recognition of insurance funds for the growth potential of innovative drugs in the secondary market.

This may stem from the strong growth of the innovative drug sector.

Since 2024, the development of innovative drugs has accelerated, with the "Implementation Plan for Supporting the Development of Innovative Drugs Across the Entire Chain" being approved in July of that year;

Nearly a year later, the National Medical Products Administration issued a notice on optimizing the review and approval of clinical trials for innovative drugs (draft for comments), supporting clinical value-oriented innovative drug research and development, and improving the quality and efficiency of clinical research;

Subsequently, the National Healthcare Security Administration clarified that the directory of innovative drugs for commercial health insurance would be officially included in the annual medical insurance adjustment policy framework.

A series of favorable policies, combined with many innovative pharmaceutical companies transitioning from the research and development phase to the realization phase, have led to an upward trend in the innovative drug sector:

As of November 26, the Wind Innovative Drug Index has accumulated a rise of 41.51% this year;

Wind data shows that since the beginning of this year, insurance funds have conducted 531 investigations into A-share innovative drug companies, with companies like BeiGene-U, East China Pharmaceutical, Livzon Pharmaceutical Group, and Baillie Gifford receiving particular attention, each being investigated more than 25 times.

HENLIUS, which was targeted by Taikang Life, has accumulated a rise of 191.49% this year;

Half a month ago, the CDE official website announced that HENLIUS's PD-1 antibody drug, Surufatinib injection (H drug), was proposed to receive breakthrough therapy designation for the first time;

Since November, HENLIUS has received support from multiple capital sources, with Boyu Capital also increasing its holdings in its H shares to 7% twice.

Insurance companies are already important payers for innovative drugs, and the dual role of "payment + investment" is conducive to deepening connections with the healthcare and pharmaceutical industries, building an ecological closed loop.

Leading life insurance companies focused on health management have already laid out plans for innovative drugs:

China Life's health investment company has previously invested in Innovent Biologics and Xianthone Pharmaceuticals, paying attention to the prices of PD-1 and other cancer treatment drugs;

Companies like Aopuma, United Imaging Healthcare, and Mindray Medical also have funding support from China Life.

Taikang Life's parent company, Taikang Group, has also laid out plans for the innovative drug sector through various means:

For example, in 2020, it participated in a more than 1 billion yuan E round financing for Zhenhe Technology through its investment platform, focusing on precise tumor diagnosis; Future investments will focus on blood glucose management company MicroTech Medical and innovative oncology drug developer Deqi Pharmaceutical, as well as the health and wellness sector.

The National Healthcare Security Administration disclosed that the negotiation and pricing work for the 2025 basic medical insurance drug catalog and the commercial insurance innovative drug catalog has been completed, with a total of 24 drugs participating in the price negotiation for the commercial insurance innovative drug catalog.

Once the subsequent technical, administrative, and legal procedures are completed, the new basic medical insurance drug catalog and the first version of the commercial insurance innovative drug catalog are expected to be released in Guangzhou on the first weekend of December, and will be implemented starting January 1, 2026.

As the reform of the innovative drug payment system progresses in the future, it remains to be seen whether more insurance funds will choose to increase their market investments as financial investors.

The market carries risks, and investments should be made with caution. This article does not constitute personal investment advice and does not take into account the specific investment goals, financial situation, or needs of individual users. Users should consider whether any opinions, views, or conclusions in this article align with their specific circumstances. Investment based on this is at one's own risk