HK Stock Market Move | GENSCRIPT B-1K (01548) fell more than 6% in morning trading; JP Morgan says GenScript's new US nucleic acid screening rules are a manageable issue

GENSCRIPT B-1K (01548) fell more than 6% in morning trading. As of press time, it was down 6.45% at HK$31.64, with turnover of HK$377 million. On the news front, on November 5, the White House released a new version of the "National Policy for Nucleic Acid Synthesis Screening" pursuant to Executive Order 14292. On November 6, the US National Institutes of Health announced that it is fully implementing the policy. On the date of full implementation, the policy will supersede the 2024 "Nucleic Acid Synthesis Screening Framework" and other nucleic acid synthesis screening policies that conflict or are inconsistent with it. JP Morgan said in a research report that the issue of GENSCRIPT B-1K facing the updated US nucleic acid screening policy is manageable rather than a fundamental demand or market access risk. The bank believes that GenScript has promoted responsible gene synthesis practices for many years and self-certified compliance with the US nucleic acid synthesis screening framework in 2024; combined with the expected small revenue from US federally funded gene synthesis projects, the impact on GenScript's gene synthesis business is expected to be limited.