Changes in Hong Kong stocks | Innovative drug concept stocks fell back, Nuochengjianhua (09969) fell more than 8%, Rongchang Biotech (09995) fell nearly 6%

Zhitong Finance App learned that innovative drug concept stocks generally declined. As of press release, Nuochengjianhua (09969) fell 8.38% to HK$13.55; Rongchang Biotech (09995) fell 5.71% to HK$72.7; and Sansheng Pharmaceutical (01530) fell 4.95% to HK$15.75.

According to the news, Beishui's absence is compounded by high US debt pressure, and the innovative drug concept, which soared earlier, has generally declined today. According to reports, innovative drugs are a typical “long-term asset”, and their value comes from distant future cash flow (a new drug can easily take 8-10 years from development to launch), so its valuation is highly sensitive to discount rates (interest rates).

It is worth mentioning that the pharmaceutical industry has continued to be favorable recently. On the policy side, the US Treasury's new investment regulations in China are expected to preserve the ability of US pharmaceutical companies to reach licensing agreements with Chinese pharmaceuticals; the “15th Five-Year Plan” for the domestic pharmaceutical industry was released during the same period, further strengthening its position as an emerging pillar industry in biomedicine. In addition, major BD and strategic partnerships have recently been implemented, covering cutting-edge directions such as oral weight loss, RAS, and dual antibodies, with a single transaction amount exceeding 2 billion US dollars.