Biotech Stocks Surge as New National Essential Drug List Includes Innovative Therapies

Stock News07-10

Shares of innovative drug concept stocks are leading gains in the Hong Kong market.

At the time of writing, SKB BIO (06990) is up 6% to HK$503.5, while REMEGEN (09995) has risen 6.04% to HK$86.9.

ASCLETIS-B (01672) has gained 5.37% to HK$11.38, and INNOVENT BIO (01801) is up 3.71% to HK$89.55.

The market movement follows the release of a new national essential drug list, which for the first time includes a batch of innovative drugs.

The National Health Commission, the National Administration of Traditional Chinese Medicine, and the National Disease Control and Prevention Administration jointly issued the "National Essential Drug List (2026 Edition)" on July 9.

A key development is the inclusion of innovative drugs in the selection and adjustment process for the list.

According to Gong Xiangguang, Director of the Drug Policy Department of the National Health Commission, this revision involved evaluating innovative drugs for inclusion.

Following strict technical consultation and expert review, a total of 16 innovative drugs were ultimately included in the new list, among which are four domestically developed Class I new drugs.

It is noteworthy that the total value of Chinese innovative drug out-licensing (BD) deals in the first half of 2026 approached nearly one hundred billion US dollars, reaching $99.7 billion, which is close to 73% of the full-year 2025 total of $135.7 billion.

Analysts at Bank of America Securities noted in a research report that the active licensing deal environment in China's pharmaceutical sector, coupled with companies' ongoing commitment to R&D innovation, is favorable for a sector re-rating.

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