The Zhitong Finance App learned that CRO concept stocks continued to decline. As of press release, Tiger Pharmaceuticals (03347) fell 7.94% to HK$28.4; Kingsley Biotech (01548) fell 5.93% to HK$10.78; Kanglong Chemical (03759) fell 4.83% to HK$8.47; and Pharmaceuticals (02359) fell 4.5% to HK$32.9.
According to the news, overnight, Federal Reserve officials made hawkish remarks. New York Federal Reserve Chairman Williams said that if the data reminds us that we need to raise interest rates to achieve our goals, then we will obviously do it. In addition, Atlanta Federal Reserve President Bostic and Minneapolis Federal Reserve Chairman Kashkari also unleashed stronger “hawks”, heightening market concerns about interest rate hikes. UBS strategists recently said that stubborn inflation and strong economic growth have raised the possibility that the Federal Reserve will raise interest rates rather than cut interest rates, and interest rates may rise as high as 6.5% next year.
Furthermore, recent media reports suggest that the list of companies covered by the US Biosafety Act may cover more Chinese CRO/CDMO companies. Pacific Securities pointed out that domestic innovative drugs are still in an adjustment cycle, and demand is weak, and it will still take time to improve in the future from investment and financing to demand, orders, and performance; innovative drug CXO's performance is poor, and the 2023 performance is expected to be only 2.76%. In the future, it will still take some time from demand recovery to order execution and performance improvement; generic drug CXO and other segments are showing impressive performance, and it is expected that performance and orders will maintain a high growth rate of 30%.