Analysts at Citi have identified their top picks within the pharmaceutical and biotech sector as Hengrui Pharmaceuticals (01276), CSPC Pharmaceutical Group (01093), Ascletis Pharma Inc. (01672), and Innovent Biologics (01801).
The bank's view is that the market has overreacted to potential policies restricting biopharmaceutical technology exports, presenting a favorable buying opportunity for investors.
On June 4, Citi hosted an expert call with a senior pharmaceutical innovation policy specialist.
According to the expert's insights, authorities recognize that the industry's core competitive advantage lies in efficient clinical validation rather than the technology invention itself. Therefore, regulators are expected to continue encouraging compliant out-licensing of innovative drugs.
Stricter regulatory measures are likely to be reserved only for extreme cases involving the export of core technologies.
The expert also noted that companies with offshore intellectual property structures, offshore clinical trial data, and single-asset licensing models are best positioned to navigate the environment.
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