Understanding the Market | CRO Concept Stocks Rise Sharply, WuXi AppTec Soars 12% at One Point Amid Reports of U.S. Lawmakers Considering Changes to the Biosecurity Bill

Zhitong
2024.12.06 06:22
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The CRO concept stocks have further expanded their gains. As of the time of writing, WuXi AppTec is up 10%, trading at HKD 55; Pharmaron is up 8.12%, trading at HKD 14.64; WuXi Biologics is up 7.02%, trading at HKD 17.6; JOINN is up 5.62%, trading at HKD 9.4. On the news front, market reports indicate that U.S. lawmakers are considering changes to the legislation, with the compromise version including increased administrative review processes for relevant companies, rather than an automatic ban on biopharmaceutical companies collaborating with Chinese firms. These potential revisions involve key parts of the legislation that specifically name Chinese companies. Minsheng Securities' recent research report points out to pay attention to the Senate schedule and timeline for December 2024, as well as the progress of the standalone legislation H.R.8333; the Federal Reserve's 50bp rate cut is expected to continue the improvement trend in biotech financing seen in the first half of the year, with CXO leaders, primarily contributing orders and revenue from overseas clients, likely to further recover

According to Zhitong Finance APP, the rise of CRO concept stocks has further expanded. As of the time of publication, WuXi AppTec (02359) rose by 10%, trading at HKD 55; Pharmaron (03759) rose by 8.12%, trading at HKD 14.64; WuXi Biologics (02269) rose by 7.02%, trading at HKD 17.6; JOINN (06127) rose by 5.62%, trading at HKD 9.4.

On the news front, market reports indicate that U.S. lawmakers are considering changes to the bill, with the compromise version including increased administrative review processes for relevant companies, rather than an automatic ban on biopharmaceutical companies collaborating with Chinese companies. These potential revisions involve key parts of the legislation that specifically name Chinese companies.

Minsheng Securities' recent research report pointed out to pay attention to the Senate schedule and timeline for December 2024, as well as the progress of H.R.8333 in separate legislation; the Federal Reserve's 50bp rate cut is expected to continue the improvement trend in biotech financing seen in the first half of the year, with CXO leaders, which mainly rely on overseas clients for orders and revenue, likely to further recover