HK Stock Market Move | CRO concept stocks led the gains; AIDD positive catalysts are, and the CXO sector's prosperity is clearly trending upward.

CRO concept stocks led the gains. As of press time, GENSCRIPT BIO (01548) rose 13.76% to HK$37.04; VIVA BIOTECH (01873) rose 7.81% to HK$1.45; Biocytogen Pharmaceuticals-B (02315) rose 7.08% to HK$62.75; Asymchem Laboratories (06821) rose 6.02% to HK$174.4. On the news front, AIDD positive catalysts have been recently. Twist and GenScript successively announced agreements with Eli Lilly's TuneLab to provide discounted wet lab services to TuneLab member companies, rapidly generating experimental data; Novo announced a collaboration with Anthropic to use its Claude Science platform to accelerate new drug discovery. Meanwhile, as innovative drug BD transactions remain active, pharmaceutical companies' R&D funding is becoming more ample. To seize the innovative drug R&D window and ensure project progress, pharma companies' willingness to pay for external R&D services has increased, and CRO companies' order backlogs are showing a "volume and price rising together" trend. A recent CMSC research report pointed out that the CXO sector's prosperity is clearly trending upward. In the first half of this year, the domestic CXO sector's revenue and net profit attributable to parent company grew 24.5% and 52.7% year-on-year respectively, with profit growth approaching the peak of the previous cycle; order backlogs and new orders are comprehensively recovering, and leading companies have raised their full-year guidance. In addition, AI pharma is expected to reshape the pharmaceutical R&D landscape, improve drug R&D efficiency, and the sector will also benefit.