HK Stock Market Move | Innovative drug concept stocks retreated. InnoCare Pharma (09969) fell over 8%, REMEGEN (09995) dropped nearly 6%.

Innovative drug concept stocks generally retreated. As of press time, InnoCare Pharma (09969) fell 8.38% to HK$13.55; REMEGEN (09995) dropped 5.71% to HK$72.7; 3SBIO (01530) declined 4.95% to HK$15.75. On the news front, the absence of southbound capital combined with high US Treasury yields exerted pressure, leading to a broad pullback in innovative drug concept stocks that had previously rallied sharply. It is understood that innovative drugs, as typical "long-duration assets," derive their value from distant future cash flows (a new drug typically takes 8-10 years from R&D to market launch), making their valuations highly sensitive to the discount rate (interest rates). It is worth noting that the pharmaceutical industry has recently seen a steady stream of positive developments. On the policy front, the US Treasury Department's new rules on China investment are expected to preserve the ability of US pharmaceutical companies to enter into licensing agreements with Chinese drugmakers; during the same period, China's domestic pharmaceutical industry "15th Five-Year Plan" was released, further reinforcing the positioning of biomedicine as an emerging pillar industry. In addition, a number of major BD and strategic collaborations have recently been announced in quick succession, covering frontier areas such as oral weight loss, RAS, and bispecific antibodies, with each deal exceeding US$2 billion.