The concept of innovative pharmaceuticals in Hong Kong stocks rose across the board. As of press time, XtalPi Holdings and Innovent Bio increased by over 4%, Rongchang Bio rose nearly 4%, Sino Biopharm gained more than 3%, 3SBio Inc. rose nearly 3%, while Hengrui Pharma and BeiGene increased by over 2%.
In terms of developments, on April 14, the General Office of the State Council issued the 'Several Opinions on Improving the Drug Pricing Mechanism,' proposing 14 measures. These include optimizing the initial pricing mechanism for newly listed innovative drugs, leveraging the guiding role of medical insurance payment standards in drug price formation, encouraging pharmacies to set reasonable retail prices for drugs, and strengthening supply and price stabilization for shortage drugs.
Citi released a research report stating that this is the most significant guideline document on drug pricing issued by the central government since 2015. It is regarded as a clear commitment from the government to support the development of globally competitive domestic pharmaceutical and biopharmaceutical industries. The policy aims to give the market a more decisive role in drug price formation. Key innovative pharmaceutical companies and biopharmaceutical firms, such as Hengrui Pharma, CSPC Pharma, Innovent Bio, and other multinational corporations, are expected to benefit.
Editor/Jayden