At the end of the 2026 semi-annual report, 508 listed companies in the A-share pharmaceutical sector achieved a total revenue of 1.3 trillion yuan and net profit to mother of 110.2 billion yuan. Nearly 80% of companies made profits. The overall scale of the sector is stable, but internal segmentation has intensified: net profit of 260 companies increased year-on-year, and innovative pharmaceutical companies performed well with two-wheel drive with “endogenous hematopoietic+BD transactions”; the performance of more than 240 companies declined during the same period, and the uneven differentiation between heat and temperature in the industry intensified. Leading brokerage firms have made a unanimous judgment on the transformation trend of the industry. Zhongtai Securities pointed out that the core signal of the semi-annual report is not a sharp rise in short-term profits, but that domestic innovative drugs have established a “domestic pipeline upgrade+overseas BD license” dual implementation path, and the global value of China's innovative assets continues to be implemented. Ping An Securities said that product volume combined with overseas licensing revenue pushed the innovative pharmaceutical industry to a profit inflection point. Many companies achieved their first profit in half a year, verified the viability of the two-wheel drive model, and completely freed the industry from a pure R&D loss cycle. It is worth noting that innovative pharmaceutical companies' BD down payments are unsustainable, and we need to be wary of the risk of performance fluctuations. A typical example is Bailey Tianheng. In the early period, it relied on BMS cooperative down payment to achieve a sharp rise in performance. The first half of 2026 showed a sharp decline in performance. Revenue was only 187 million yuan, and net loss to mother was 1,637 million yuan, which changed from profit to loss over the previous year, highlighting the volatility of the performance of a single BD income.

At the end of the 2026 semi-annual report, 508 listed companies in the A-share pharmaceutical sector achieved a total revenue of 1.3 trillion yuan and net profit to mother of 110.2 billion yuan. Nearly 80% of companies made profits. The overall scale of the sector is stable, but internal segmentation has intensified: net profit of 260 companies increased year-on-year, and innovative pharmaceutical companies performed well with two-wheel drive with “endogenous hematopoietic+BD transactions”; the performance of more than 240 companies declined during the same period, and the uneven differentiation between heat and temperature in the industry intensified. Leading brokerage firms have made a unanimous judgment on the transformation trend of the industry. Zhongtai Securities pointed out that the core signal of the semi-annual report is not a sharp rise in short-term profits, but that domestic innovative drugs have established a “domestic pipeline upgrade+overseas BD license” dual implementation path, and the global value of China's innovative assets continues to be implemented. Ping An Securities said that product volume combined with overseas licensing revenue pushed the innovative pharmaceutical industry to a profit inflection point. Many companies achieved their first profit in half a year, verified the viability of the two-wheel drive model, and completely freed the industry from a pure R&D loss cycle. It is worth noting that innovative pharmaceutical companies' BD down payments are unsustainable, and we need to be wary of the risk of performance fluctuations. A typical example is Bailey Tianheng. In the early period, it relied on BMS cooperative down payment to achieve a sharp rise in performance. The first half of 2026 showed a sharp decline in performance. Revenue was only 187 million yuan, and net loss to mother was 1,637 million yuan, which changed from profit to loss over the previous year, highlighting the volatility of the performance of a single BD income.