Changes in Hong Kong stocks | Pharmaceutical Biotech (02269) rose more than 4% to win the largest biosimilar development order, UBS gave a target price of HK$62

The Zhitong Finance App learned that Yao Ming Biotech (02269) rose by more than 4%. As of press release, it had risen 4.13% to HK$44.84, with a turnover of HK$265 million.

According to news, on November 2, Fresenius and Pharmaceutical Biotech reached a cooperation to obtain exclusive options for up to 37 selected biosimilar candidate products over the next 10 years. Among them, Pharmaceutical Biotech is responsible for early development, and Fresenius is responsible for formulating long-term production strategies for products. The two sides did not announce the down payment or milestone amount for this deal, but Fresenius said that this is the largest development agreement announced by the biosimilar industry so far, with a total annual sales volume of 37 products corresponding to the original research drug price exceeding 370 billion euros.

Some analysts pointed out that this long-term agreement, which charges for services and does not require a down payment, indicates that leading buyers acknowledge China's CRDMO process capabilities, and the market's focus on CXO has shifted from cyclical recovery to a ten-year revenue lock. UBS, on the other hand, released a research report saying that the move was seen as an affirmation of the company's R&D strength, maintaining a “buy” rating, and the target price was HK$62.