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| HSI1 | 25,413.76 | -237.11 | 91.09B |
| HSCEI1 | 8,434.25 | -120.78 | 21.42B |
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2026-09-04 13:37:37 UBS report said that market expectations during the 1H26 earnings release season for China's biotech were originally conservative, in wake of concerns over tighter regulation on domestic pharmaceutical marketing activities and anti-corruption campaigns at public hospitals. However, China's biotech companies which focused on innovative drugs were only mildly affected. Among the 12 biotech companies covered by UBS (11 of which entered the commercialization stage), 8 reported sales beat, and no company viewed regulation as a major commercialization obstacle. UBS noted that aggregate product sales of the 11 companies in 1H26 hiked 34% YoY. BeOne Medicines Ltd. (ONC.US) led in scale with USD3.2 billion in product sales (+31% YoY), while SKB BIO (06990.HK) (+112.1%), INNOVENT BIO (01801.HK) (+56.7%) and INNOCARE (09969.HK) (+43.2%) recorded the strongest growth. BeOne Medicines Ltd. raised its guidance, while INNOVENT BIO provided new optimistic guidance. The remaining companies maintained full-year guidance and expressed confidence in achieving or exceeding targets. Outbound licensing deals by China's biotech sector remained active. As of the end of August, upfront payments/total deal size since the beginning of the year reached 90%/82% of full-year 2025 levels. Apart from BeOne Medicines Ltd. and INNOVENT BIO maintaining profit growth, HUTCHMED (00013.HK), INNOCARE and JUNSHI BIO (01877.HK) also achieved net profit in 1H26. UBS preferred BeOne Medicines Ltd., followed by INNOVENT BIO and SKB BIO. Meanwhile, it lowered AKESO (09926.HK)'s TP from HKD158 to HKD149 and cut JUNSHI BIO's TP from HKD32.1 to HKD29.1 to reflect a more competitive global market landscape, while maintaining Buy ratings on the companies. ~ AASTOCKS Financial News Website: www.aastocks.com | |