Morgan Asset Management: Innovation drug stock prices diverge from fundamentals, extreme differentiation provides investment opportunities.

Ye Min, fund manager of Morgan Asset Management China, stated at the Morgan Asset Management Leaders Institute Strategy Conference that the market has shown significant differentiation this year. Technology companies, represented by AI, have attracted a large amount of liquidity, while some pharmaceutical companies with solid fundamentals and good growth prospects continue to be under pressure, with stock prices deviating from their fundamentals. She believes that the global competitiveness of the Chinese pharmaceutical industry is still increasing, and the trend of the transfer of advanced biopharmaceutical production chains from overseas to China is irreversible. Extreme differentiation provides better opportunities for investing in high-quality pharmaceutical companies. She also pointed out that investment in innovative drugs is prone to fluctuations and requires dynamic management based on clinical data, overseas authorizations, commercial progress, and changes in valuation.