Shares within the innovative drug sector experienced a sharp upward movement during Friday afternoon trading.
Among individual stocks, Dizhe Pharmaceutical shares skyrocketed in a straight line, hitting the 20% daily price limit in just 14 seconds, bringing its latest market capitalization to 26.203 billion yuan.
Additionally, Harbin Pharmaceutical Group shares also rose by the 10% daily limit, marking its third consecutive trading session of gains at the upper limit.
Shares of Chenxin Pharmaceutical and Lianhe Chemical Technology similarly surged to their respective daily price limits.
Catalyst Behind the Move
On July 14, Dizhe Pharmaceutical announced that it had entered into a license agreement with AstraZeneca PLC (AZN).
The agreement grants AstraZeneca PLC exclusive global rights for the development and commercialization of the drug Shuwuzhe.
As part of the deal, Dizhe Pharmaceutical will receive a one-time, non-refundable upfront payment of $600 million from AstraZeneca PLC.
It is also eligible for up to $400 million in clinical development milestone payments and up to $500 million in sales milestone payments.
Furthermore, the company will receive tiered royalty payments on global net sales of Shuwuzhe, potentially reaching a low double-digit percentage.
Positive Industry Backdrop
Separate reports indicate a strong environment for China's innovative drug sector, with a total of 81 out-licensing deals recorded in the first half of the year.
The total transaction value of these deals reached approximately $110 billion, accounting for about 80% of the full-year 2025 out-licensing total.
Statistics show that these deals in the first half covered 10 therapeutic areas, including oncology, metabolism, immunology, and neurology.
The licensing partners involved companies from 20 countries and regions, including the United States, the United Kingdom, France, and Italy.
An official noted that China accounts for roughly 30% of global investigational new drugs, ranking second worldwide, and that the efficiency of China's pharmaceutical innovation is among the highest globally.
Company's Financial Performance
Regarding its financials, Dizhe Pharmaceutical remains in a loss-making phase, although the extent of its loss narrowed year-over-year in the first quarter.
Specifically, the company reported first-quarter revenue of 253 million yuan, representing a year-on-year increase of 58.18%.
Its net profit attributable to shareholders showed a loss of 95.5574 million yuan, an improvement compared to a loss of 193 million yuan in the same period last year.
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