CRO concept stocks continued to fall. As of press release, Gloria Young (06821) fell 4.15% to HK$56.55; Zhaoyan Pharmaceutical (06127) fell 3.28% to HK$9.44; and Kanglong Chemical (03759) fell 3.33% to HK$8.7.
The Zhitong Finance App learned that CRO concept stocks continued to decline. As of press release, Gloria Young (06821) fell 4.15% to HK$56.55; Zhaoyan New Pharmaceutical (06127) fell 3.28% to HK$9.44; Kanglong Chemical (03759) fell 3.33% to HK$8.7; and Pharmaceuticals Kangde (02359) fell 2.34% to HK$37.55.
According to the news, the Financial Services Association recently reported that the Senate version of the “Biosafety Law” co-sponsored the increase in the number of members to 7. There are also media reports that four members of the US Congress sent a letter to Washington officials requesting that the US government include Kantar and others on the sanctions list. Yao Ming Kangde issued an announcement stating that the company noticed that US lawmakers sent letters to the US Department of Commerce, the Ministry of Finance, and the Department of Defense on February 12, 2024. The content concerned the company. The company has always welcomed the regulation of its industry by regulators, and the company has successfully passed the US government's review many times in the past. However, the company strongly opposes misleading allegations, inaccurate findings, and prejudgmental actions without due process against the company. Yao Ming Biotech also issued an announcement stating that the company is not a subsidiary of Wuxi Pharmaceutical Kangde New Drug Development Co., Ltd., and the relevant statement in the letter is untrue.
BOC International previously indicated that the emotional impact on the CXO sector may be difficult to end in the short term. The innovative drug and prescription drug sectors were also affected by sentiment this time, but the actual impact was very limited. CITIC Securities believes that Chinese CXO companies are deeply embedded in the global biomedical industry chain, enabling the development and production of new global drugs, achieving a win-win situation with global pharmaceutical customers and benefiting patients. Short-term overseas policy fluctuations do not affect the long-term fundamental logic of Chinese CXO companies. The bank is still optimistic about the leading position of CRDMO in the world, and it is expected that it will continue to develop steadily in the future.