HK Stock Market Move | Innovative drug concepts mostly rise, industry business development deals continue to be in high demand, and the logic of policy support and commercial profitability realization remains unchanged.

The concept of innovative drugs mostly rose, with SKB BIO (06990) up 8.62% to 428.4 Hong Kong dollars; REMEGEN (09995) up 8.11% to 75.3 Hong Kong dollars; InnoCare Pharma (09969) up 6.67% to 11.04 Hong Kong dollars; KEYMED BIO-B (02162) up 6.21% to 59 Hong Kong dollars; Jiangsu Hengrui Pharmaceuticals (01276) up 5.23% to 55.3 Hong Kong dollars. On the news front, in the first quarter of this year, the total amount of outbound licensing transactions of Chinese innovative drugs exceeded 60 billion US dollars, showing that going global has evolved from "occasional large deals" to sustainable industrial capabilities; on the other hand, the number and academic level of Chinese research entries selected for ASCO 2026 continue to rise. Galaxy Securities believes that in the first half of the year, the pharmaceutical sector as a whole has experienced a downward shock, especially Hong Kong-listed innovative drugs, affected by factors such as war and Fed interest rate expectations, and downward trend trading. Valuations of both innovative and non-innovative drugs have fallen to historical lows. In the second half of the year, attention will be given to medical insurance variables and the realization of innovative drug clinical data. Investment strategies will focus on seeking medical and pharmaceutical hard technology and considering corporate cash value. Industrial also states that the trend of the innovative drug industry remains unchanged, with short-term capital adjustments accumulating upward elasticity. Recently, multiple innovative drug data readings have been announced, with important BD continuously disclosed, and catalytic events continue to occur. The global competitiveness of Chinese innovative drugs continues to strengthen, and the industry logic of policy support and commercial profitability realization remains unchanged. The current BD going global is mostly based on overseas equity cooperation, which is the preferred way for companies to accelerate the expansion of global markets at a stage where they do not yet have overseas sales capabilities; the Co-Co model is gradually increasing, reflecting the competitiveness and discourse power of Chinese innovative pharmaceutical companies.