Hong Kong Stock Market Movers: CRO Sector Leads Gains as Citi Signals Positive Outlook for U.S. Licensing Policy Toward Chinese Drugmakers, Remains Bullish on Innovative Drugs and Biotech

Stock News09-25 13:54

CRO-related stocks are among the top gainers, with GENSCRIPT BIO (01548) up 9.16% at HK$43.38, ASYMCHEM (06821) up 3.81% at HK$155.4, WUXI APPTEC (02359) up 2.44% at HK$210, WUXI BIO (02269) up 2.31% at HK$53.1, and TIGERMED (03347) up 1.15% at HK$45.62, as of press time.

On the news front, on September 21, according to Reuters, the U.S. Treasury Department is drafting new rules targeting biotechnology investment in China. Unlike the broad restrictions previously advocated by some U.S. lawmakers, the plan under discussion may focus on limiting pathogens and biotechnology that could be weaponized. This means the new rules will not impose a blanket ban on all cross-border biomedical transactions, and conventional innovative anticancer drugs such as tumor ADCs and bispecific antibodies would still allow overseas pharmaceutical companies to acquire pipelines and engage in licensing BD collaborations.

Citi released a research report stating that it held another expert conference call on the 24th to discuss the outlook for U.S. policy regarding pharmaceutical licensing arrangements involving Chinese companies. Citi believes the outlook for U.S. policy on pharmaceutical licensing originating from China is positive and holds a constructive view on innovative drugs and biotechnology.

Nomura stated that China's pharmaceutical "15th Five-Year Plan" highlights innovation and globalization, which benefits innovative drug companies and CRDMO players.

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