HK Stock Market Move | Some concept stocks of innovative drugs are rising, and two departments have issued documents to promote the development of innovative drugs. Citi believes that the sector will usher in multiple catalysts in the second half of the year.

Some concept stocks of innovative drugs have risen. As of the time of publication, REMEGEN (09995) rose by 8.48% to HK$64; AKESO (09926) rose by 6.5% to HK$113; JUNSHI BIO (01877) rose by 3.33% to HK$24.8; IMMUNEONCO-B (01541) rose by 2.79% to HK$12.5. On the news side, the National Healthcare Security Administration and the National Health Commission issued "Several Measures to Support the High-Quality Development of Innovative Drugs" on June 30. It mentioned increasing support for innovative drug research and development, supporting innovative drugs to enter the basic medical insurance drug list and commercial health insurance innovative drug list, supporting the clinical application of innovative drugs, and improving the diverse payment capabilities of innovative drugs. Citi issued a research report stating that this is the first time that two government departments have jointly issued policies to support drug differentiation innovation, and it is also the first time that the National Healthcare Security Administration has proposed sharing medical insurance data with pharmaceutical companies to support research and development. Citi predicts that in the second half of 2025, the innovative drugs and biotechnology sector will see multiple catalysts, including commercial cooperation, accelerated regulatory approvals, favorable pricing environment, and the incremental payment of commercial insurance to the healthcare system will also drive industry development.