The Zhitong Finance App learned that CRO concept stocks have generally weakened. As of press release, Tiger Pharmaceuticals (03347) fell 3.3% to HK$35.15; Kingsley Biotech (01548) fell 1.44% to $12.28; Pharmaceutical Kangde (02359) fell 1.21% to $40.7; and Gloria Ying (06821) fell 0.94% to $63.55.
According to the news, on the morning of May 15, local time, the US House of Representatives passed the new “Biosafety Act” with a 40-1 vote in a subordinate committee hearing. The new version of the Act requires the company concerned to extend the immunity from the existing contract/product until January 1, 2032. In response, Yao Ming Kang said that it strongly opposes the unreasonable definition of the company in the US draft Biosafety Law; Pharmaceutical Biotech reiterated that the company will not pose a safety risk to the US or any other country in the past, present, or future. BGI responded that there is uncertainty about the US Biosafety Act becoming an official law, and the company will continue to evaluate the impact.
China Post Securities believes that the BIO survey shows that domestic CDMO companies are important in the industrial chain and cannot be shaken in a short period of time, and that 8 years is enough time for the industry to make strategic changes, and the short-term impact on the industry is limited. At the same time, there has been a marginal improvement on the demand side of the industry. Currently, the CXO sector's valuation is about 20 times, which is at a historically low level. It is recommended to focus on enterprises in the sector with sufficient orders in hand, continued growth in on-hand orders, and steady and improving business conditions.