Stock Track | REMEGEN Plummets 6.30% as Hong Kong Biotech Stocks Tumble Amid Cooling BD Deals and Fed Rate Concerns

Stock Track11-21

REMEGEN (09995.HK) shares plummeted 6.30% in Friday's trading session, as Hong Kong's biotech sector faced significant pressure. The stock's sharp decline reflects broader concerns affecting the biotechnology industry, including a slowdown in business development deals and shifting expectations for U.S. Federal Reserve rate cuts.

The biotech sector in Hong Kong experienced a widespread sell-off, with several major players witnessing substantial losses. HBM HOLDINGS-B (02142.HK) led the declines with a 9.15% drop, followed by BRII-B (02137.HK) falling 7.56%, and INNOVENT BIO (01801.HK) sliding 6.18%. This sector-wide downturn suggests investors are reassessing the near-term prospects of biotech companies.

Market analysts point to two key factors driving the negative sentiment. Firstly, there are indications of cooling in biotech business development (BD) deals. While China-related transactions showed strong growth earlier in the year, recent data suggests a deceleration starting from the third quarter of 2025. This slowdown in BD activity could potentially impact the growth prospects and valuations of biotech firms. Secondly, the resilient U.S. September jobs report has led to revised expectations for Federal Reserve rate cuts. Morgan Stanley's withdrawal of its December rate cut forecast and the push of expected cuts to 2026 may put additional pressure on biotech valuations and overseas life sciences investments, contributing to the sector's current volatility.

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