Hong Kong Stocks on the Move: Pharma Shares Extend Rally as SBP Group Leads Gains with US$7 Billion BD Deal; First Three Quarters of Outbound Licensing Nearly Match Full-Year Total

Stock News11-05

Pharmaceutical stocks continued their advance in Hong Kong trading this morning, led by innovative drug makers and CRO-related names.

As of press time, SBP GROUP (HKEX: 01177) shares rose 8.64% to HK$5.595, Akeso Inc (HKEX: 09926) shares climbed 5.76% to HK$87.25, BEONE MEDICINES (HKEX: 06160) shares gained 5.61% to HK$244.6, INNOVENT BIO (HKEX: 01801) shares advanced 4.70% to HK$89.05, SKB BIO (HKEX: 06990) shares added 4.66% to HK$463.0, and WuXi AppTec (HKEX: 02359) shares were up 4.65% to HK$207.0.

On the news front, the innovative drug sector has seen a cluster of positive developments. SBP GROUP announced after market close on November 4 that it had entered into a major outbound licensing agreement with multinational pharmaceutical company Boehringer Ingelheim for next-generation oncology therapies, covering six preclinical innovative drug programs. The company is entitled to receive an upfront payment of US$358 million, with the total potential deal value reaching up to US$7 billion, setting a new record for the company's BD transaction size.

Notably, according to the latest data disclosed by the National Development and Reform Commission, the total value of China's innovative drug outbound technology licensing (License-out) transactions reached approximately US$130 billion in the first three quarters of this year, already approaching the historical high of US$135.6 billion for the full year of 2025.

Orient Securities pointed out that, looking at the pharmaceutical sector as a whole, revenue grew 1.4% year-on-year in the first three quarters of 2026, net profit attributable to parent company shareholders rose 11.6% year-on-year, and non-GAAP net profit attributable to parent company shareholders increased 18.3% year-on-year. Compared with 2025, revenue growth picked up slightly, while both attributable and non-GAAP attributable net profits turned from decline to growth, with profit growth significantly outpacing revenue growth, further confirming the industry's earnings recovery. Currently, the pharmaceutical industry is characterized by moderate revenue growth and relatively rapid profit repair, with non-GAAP attributable net profit growth exceeding attributable net profit growth, indicating continued improvement in core business profitability.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap
Leave a comment