Caiflance News, November 20th (Editor: Hu Jiarong) Today, Hong Kong stocks in the biomedical sector are favored by funds. Among them, Lai Kai Pharmaceuticals (02105.HK), CanSino Biologics-B (02162.HK), WuXi AppTec-B (01541.HK), Remegen (09995.HK), and Akeso (09926.HK) rose by 18.30%, 7.57%, 6.87%, 6.40% respectively.

Note: performance of medical stocks.

On the news front, the "2024 Medical Devices Economic Information Release Conference" hosted by the Southern Medical Economic Research Institute of the National Medical Products Administration was held in Jiading, Shanghai on November 18. The conference pointed out the need to deepen the reform of comprehensive life cycle supervision of medical devices, accelerate the cultivation and development of new quality medical device productivity, and better serve the public's health needs.

Furthermore, according to the statistics from the Information Department of China Silver (Hong Kong) Capital Research, the number of innovative drug IND applications and NDA approvals has rebounded after hitting a low point in 2022. In the third quarter of this year, 1033 drug clinical trials were approved, a 25% increase year-on-year, with a total of 8 first-class innovative drugs approved for marketing, doubling compared to the previous year. The institution believes that domestic innovative drugs are accelerating into a "new quality development stage."

Furthermore, at a recent third-quarter earnings conference, WuXi AppTec responded to some questions regarding the progress of legislation and the company's business prospects in the USA. Hu Zhengguo, Vice Director and Global Chief Investment Officer of WuXi AppTec, said: "The Biosafety Law was initiated by this current session of Congress, and the U.S. election did not directly affect the Biosafety Law still in the legislative process. There is still uncertainty about whether this law can be passed during this congressional term."

Institutions believe that the future performance recovery of the CXO is worth looking forward to.

In a recent statement, CICC pointed out that although most companies in the CXO sector still face certain pressures on their mid-year performance in 2024, some companies' orders have started to recover. Combining the situation in the third quarter report, the current trend of order recovery shows sustainability. The improvement in orders initially reflects the recovery of industry prosperity, which will gradually translate into performance. The future performance recovery of CXO is worth looking forward to.

haitong sec also pointed out that against the background of the US interest rate cut, the mild recovery of investment and financing in the biomedical industry has become a certainty trend. As of November 5, 2024, the total amount of overseas biomedical investment and financing has reached $45.3 billion, exceeding the full year of 2023 at $41.7 billion and 2022 at $44.2 billion. Domestic demand side is still bottoming out.

The brokerage believes that the current domestic biomedical investment and financing are still in the stage of policy support. It is expected that the investment of state-owned guided funds, local government finances, the gradual opening up of capital market IPOs and refinancing will gradually reverse the downward trend of biomedical investment and financing.