On July 15, Hong Kong's innovative drug sector experienced a significant uptick during afternoon trading, with Innocare and CSPC Pharma leading gains by surging more than 7%. Other notable performers included Ocumension and BeiGene, both climbing over 6%, while Sino Biopharm advanced more than 3%.
The rally was largely driven by a recent policy announcement from China's National Healthcare Security Administration. On July 10, the authority unveiled a plan for the 2025 adjustments to the national basic medical insurance and commercial health insurance drug directories, emphasizing synchronized updates to foster innovation. This favorable development has injected momentum into the sector, with experts predicting sustained attention on biopharmaceutical stocks like innovative drugs in the second half of the year.
Looking ahead, fund managers Guo Peng and Shan Lin from Yongying Health Fund highlighted in their quarterly report that China's innovative drug evolution is not optional but essential. They noted that domestic innovative drugs are currently on the brink of realizing industry-wide benefits, and only companies with robust technological capabilities and consistent clinical value creation will endure market cycles successfully.
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