HK Stock Market Move | The concept of innovative drugs is rising across the board, the State Council issued a document to improve the drug pricing mechanism, Citigroup pointed out that innovative drug companies such as Hengrui Pharmaceuticals are expected to benefit.

The concept of innovative drugs is on the rise. As of the time of writing, GENFLEET-B (02595) rose by 7.92% to 49.62 Hong Kong dollars; INNOVENT BIO (01801) rose by 4.17% to 89.9 Hong Kong dollars; Jiangsu Hengrui Pharmaceuticals (01276) rose by 3.35% to 67.85 Hong Kong dollars; CSPC PHARMA (01093) rose by 2.51% to 9.39 Hong Kong dollars. On April 14th, the General Office of the State Council issued the "Several Opinions on Improving the Drug Pricing Mechanism", proposing 14 measures, including optimizing the pricing mechanism for innovative drugs and other newly listed drugs, leveraging medical insurance payment standards to guide drug pricing, guiding pharmacies to set reasonable retail prices for drugs, and strengthening the guarantee and stability of prices for scarce drugs. Citi released a research report stating that this is the most important guiding document on drug pricing issued by the central government since 2015. They view it as a significant signal of the government's clear commitment to supporting the domestic pharmaceutical and biopharmaceutical industries with global competitiveness. The policy goal is to allow the market to play a greater decisive role in drug pricing. Key innovative drug companies/biopharmaceutical companies will benefit from this, such as Jiangsu Hengrui Pharmaceuticals, CSPC PHARMA, INNOVENT BIO, and other multinational companies.