Understanding the Market | The innovative drug concept is gaining strength again, driven by favorable policies and BD expectations. Institutions say the current valuation of the sector remains attractive

Zhitong
2025.07.17 02:24
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The concept of innovative drugs has strengthened again, with LEPU BIO-B rising by 11.15%, AKESO rising by 9.92%, and KEYMED BIO-B rising by 8.7%. The National Healthcare Security Administration has launched the 11th batch of centralized drug procurement, excluding innovative drugs from the centralized procurement. Zhongyou Securities pointed out that the License out amount for innovative drugs has approached USD 66 billion, and under the dual drive of policies and funding, the innovative drug sector is expected to continue to strengthen. Jiayuan International believes that the current valuation remains attractive

According to Zhitong Finance APP, the innovative drug concept has once again strengthened. As of the time of writing, LEPU BIO-B (02157) rose 11.15% to HKD 5.68; AKESO (09926) rose 9.92% to HKD 138.5; KEYMED BIO-B (02162) rose 8.7% to HKD 54.35; BeiGene (06160) rose 7.3% to HKD 177.8; 3SBio (01530) rose 6.08% to HKD 29.65; Ascentage Pharma-B (06855) rose 5.08% to HKD 77.6.

On the news front, there have been frequent positive developments in the innovative drug industry chain recently. On July 15, the National Healthcare Security Administration announced that the 11th batch of national organized drug centralized procurement has recently been launched. This centralized procurement adheres to the principle of "not collecting new drugs for centralized procurement of old drugs that are mature for clinical use," meaning that innovative drugs will not be included in the centralized procurement. Previously, the National Healthcare Security Administration and the National Health Commission jointly issued "Several Measures to Support the High-Quality Development of Innovative Drugs," introducing 16 specific measures from the dimensions of R&D support, medical insurance access, and clinical application. It is worth mentioning that, according to data from China Post Securities, the total amount of License out for Chinese innovative drugs in the first half of this year has approached USD 66 billion, surpassing the total amount of BD transactions for the entire year of 2024, and MNC's attention to Chinese innovative drug assets is expected to continue.

China Post Securities research states that innovative drugs continue to perform well under the catalysis of large overseas BD expectations and the stimulus of policy documents supporting the development of innovative drugs. The ongoing policies such as medical insurance negotiations and procurement optimization over the next 25 years will drive the performance of the innovative drug sector, supported by both policy and funding. CMB International points out that the core driving force behind this round of Hong Kong stock innovative drug market is value reassessment, and current valuations remain attractive. In the first half of the year, domestic investors continued to increase their positions through the Hong Kong Stock Connect, while foreign investors' positions in innovative drugs are at a low point, with the latter likely preferring fundamentally solid and cost-effective targets. The overall opportunity for the innovative drug sector to continue its recovery is still optimistic

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