HK Stock Market Move | Concept stocks related to CROs rose in the morning session, with Pharmaron Beijing (03759) rising more than 8%, accelerating the review and approval of innovative drug clinical trials.

Concept stocks related to CROs rose in the morning session. As of the time of writing, Pharmaron Beijing (03759) rose by 8.11% to 25.58 Hong Kong dollars; Joinn Laboratories (06127) rose by 6.27% to 24.76 Hong Kong dollars; WUXI BIO (02269) rose by 4.88% to 38.26 Hong Kong dollars; Asymchem Laboratories (06821) rose by 4.33% to 101.3 Hong Kong dollars. On the news front, on September 12th, the National Medical Products Administration issued an announcement that "innovative drug clinical trial applications meeting the requirements will be reviewed and approved within 30 working days after acceptance," effective immediately. The channel covers category 1 innovative drug clinical trials for traditional Chinese medicine, chemical drugs, and biological products that meet one of three criteria. After the implementation of the implied license for drug clinical trials in 2019, the average review and approval time for drug clinical trials in China has been reduced to around 50 working days. This announcement adds a 30-day channel on top of the original basis to further expedite clinical trial applications with additional acceleration needs. In addition, the latest iteration of the U.S. administrative draft has once again raised market concerns. Huafu Securities pointed out that since the end of 2023, the "Biological Safety Law" has undergone a total of 10 changes. From the perspective of stock price reactions, representative CXO companies have gradually become "desensitized" to the progress of the "Biological Safety Law," with current stock prices "regaining lost ground" and reaching new highs. The bank pointed out that the wave of BD in Chinese innovative drugs this year is essentially a concentrated manifestation of the talent resources, research and development efficiency, and research and development costs advantages of the Chinese innovative drug industry. Similar to the impact of the "Biological Safety Law" on the domestic CXO industry, BD-related policies of the Trump administration will not have a substantial impact on the truly globally competitive Chinese innovative drug industry.