Understanding the Market | CRO concept stocks opened higher collectively as the Biosecurity Act was not included in the final version of the NDAA by the U.S. Senate and House of Representatives
CRO concept stocks opened higher collectively, WuXi Biologics rose 13.03%, WUXI APPTEC rose 11.72%, and Pharmaron rose 9.14%. The National Defense Authorization Act (NDAA) for fiscal year 2025 released by the U.S. Congress did not include the biosafety bill, which may affect its chances of being legislated separately. Analysts believe that the Federal Reserve's interest rate cuts will benefit biotech financing, and leading CXO companies are expected to recover
According to Zhitong Finance APP, CRO concept stocks opened higher collectively. As of the time of publication, WuXi Biologics (02269) rose 13.03% to HKD 19.6; WuXi AppTec (02359) rose 11.72% to HKD 61; Pharmaron (03759) rose 9.14% to HKD 16; Zai Lab (06127) rose 6.2% to HKD 9.93; and Genscript Biotech (01548) rose 4.98% to HKD 11.8.
On the news front, on December 7 local time, the U.S. Congress's military committees in both the House and Senate released the final agreement text of the National Defense Authorization Act (NDAA) for fiscal year 2025, which incorporates proposals from both the House and Senate. The latest version of the NDAA shows that the biosafety bill was not included. According to the process, this version must be signed by the U.S. President to take effect.
CMB International believes this indicates that the attempt to include the biosafety bill in the NDAA legislative path has failed. The biosafety bill can still advance through separate legislation, but considering there are only two weeks left in the window, the firm believes the success rate of separate legislation is extremely low. Minsheng Securities pointed out that with the Federal Reserve cutting interest rates by 50 basis points, biotech financing is expected to continue the improvement trend seen in the first half of the year, and CXO leaders, which mainly contribute orders and revenue from overseas clients, are expected to further recover