The Zhitong Finance App learned that CITIC Construction Investment released a research report saying that the pharmaceutical sector's operations continued to improve in the first three quarters of 2026, and the trend is expected to continue in 2027. Looking ahead to 2027, overseas clinical and registration of innovative drugs will enter an intensive verification period. As overseas sales increase and strategic alliances emerge, opportunities and risks coexist in the face of a larger market and more complex competitive environment; CXO order transformation and the recovery of upstream demand are mutually promoted, and AIDD will further drive the rise in demand. The inflection point in device performance is gradually showing. Traditional Chinese medicine and pharmaceutical businesses focus on operational restoration, and blood products and vaccines focus on new products, integration, and overseas markets. The proposal focuses on innovation and internationalization to seize opportunities, and at the same time, it is recommended to pay more attention to the main line of marginal improvement.
CITIC Construction Investment's main views are as follows:
Innovative drugs: internationalization has entered the verification period, focusing on clinical and commercial implementation
Innovative drugs go overseas and have entered the global Phase III data verification period. Opportunities and risks coexist, competition is escalating, and it is recommended to select leading segmented racetracks. Investment opportunities in 2027 come from overseas certification and changes in the competitive landscape. BD will be upgraded to a “strategic alliance” in 2026. It is expected that each alliance will undergo preliminary testing in 2027, which is expected to unlock new global value.
CXO and upstream: orders continue to be fulfilled, domestic substitution resonates with AI demand
CXO demand is steady, moderate and positive, and orders are transmitted to revenue and profit, focusing on scarce production capacity and business inflection points. Localization of upstream equipment and consumables has accelerated, scientific reagents have benefited from early research recovery and the development of AI pharmaceuticals, and the trend of profit restoration continues.
Medical devices and services: inflection points are gradually emerging, grasping innovation and going overseas
The quarterly performance of devices continues to improve. We are concerned about the impact of collection and the release of innovative products. We are optimistic about surgical robots, brain-computer interfaces and internationalization in the long term. Medical services focus on recovery in ophthalmology demand and restoration brought about by refinement of operations.
Pharmaceutical Consumption and Biological Products: Focus on Restoration, Integration and New Product Release
The dividend attributes of traditional Chinese medicine are prominent, focusing on channel improvement and base drug catalysis; retail is looking forward to same-store growth and valuation repair, and circulation focuses on repayment improvements. Blood products focus on industry integration, new products and overseas sales, while vaccines focus on innovative pipelines and overseas markets.
Investment advice
Focus on innovation and internationalization, and pay more attention to the main line of marginal improvement. In 2027, it was proposed to use innovative drugs as the main line of growth elasticity, use the internationalization of innovative drugs and devices as the main line for value implementation, and use pharmacies, IVD, traditional Chinese medicine, distribution and medical services as the main line for marginal improvement and valuation repair. The overall balance is balanced between growth flexibility and fulfillment ability, and segmented leaders with differentiated pipelines, global capabilities, order visibility, and certainty in business improvement are preferred.
Risk factors: fierce competition exceeds expectations, industry policy risk, risk of R&D falling short of expectations, risk of falling short of expectations in approval, risk of macro-environmental fluctuations, geopolitical risk.