A recent research report from Guotai Junan Securities underscores that the surge in business development (BD) activities has fortified the rationale for promoting innovative drugs on a global scale, and this momentum is anticipated to persist. Consequently, the report reaffirms its recommendation for innovative drugs and strengthens its stance on advocating for pharmaceutical companies (Pharma). Notably, the innovative drug sector is exhibiting robust growth potential. Specifically, the report highlights Pharma enterprises undergoing a transformation from generic drugs to innovative drugs, whose values are poised for reevaluation. Additionally, it recommends Biopharma/Biotech firms with progressively materializing innovative pipelines and entering a phase of accelerated performance growth. Furthermore, the report also endorses contract research and manufacturing organizations (CXO) enterprises, where the turning point for earnings growth is gradually becoming evident.