Source: Finance Association
① Why is the market paying attention to the Biosafety Act? ② How has Yao Ming Kangde performed recently?
Benefiting from the favorable weekend market, the majority of Hong Kong Pharmaceuticals strengthened. As of press release,$WUXI BIO (02269.HK)$,$WUXI APPTEC (02359.HK)$,$IMMUNEONCO-B (01541.HK)$,$WUXI XDC (02268.HK)$,$JOINN (06127.HK)$They rose 8.28%, 6.34%, 5.56%, 3.80%, and 2.75%, respectively.
Judging from the chart above, listed pharmaceutical companies, including Yao Ming Bio and Pharmaceutical Kang De, are leading the way in their sector. The rise in these companies' stock prices may be related to a favorable weekend.
According to Sunday reports, Representative Mike Gallagher, chairman of the “US-China Strategic Competition Special Committee” of the US House of Representatives, announced his resignation on a personal social networking platform.
As for Mike Gallagher, he previously proposed the Biosafety Act with others, which proposed that it would restrict US federally funded healthcare service providers from using equipment or services from foreign rival biotech companies. However, the lawmaker left office early or brought variables to the bill.
Why is the market paying attention to the Biosafety Act?
The “Biosafety Act” previously triggered adjustments in CXO leaders such as Pharmaceutical Kangde and the pharmaceutical sector. The bill was proposed by US Democratic Senator Gary Peters (Gary Peters), chairman of the US Senate Homeland Security and Governmental Affairs Committee. The purpose is to restrict US federally funded healthcare service providers from using equipment or services from foreign rival biotechnology companies. Among them, the companies named include Pharmaceuticals and Huada.
Although the Biosafety Act law still has a long way to go, variables are not ruled out in the process. However, as long as the bill is moving forward, market concerns will not abate. As a result, the stock prices of pharmaceutical companies collapsed across the board again the next day (7th), driving the entire CXO sector to weaken across the board.
Yao Ming Kangde had the highest increase
Yao Ming Kangde's stock price once rose more than 8% today; currently, the increase is 7.56%.
In terms of news, Yao Ming Kangde announced last year's results in mid-March, with revenue of 40,340.8 billion yuan (RMB, same below), up 2.5% year on year; profit attributable to parent company holders of 10.69 billion yuan, up 21.3% year on year; gross profit of 16.372.5 billion yuan, up 12.9% from the same period in 2022.
The company also stated that it plans to distribute a cash dividend of 9.8336 yuan for every 10 shares to all shareholders, for a total of 2.88 billion yuan in cash dividends.
Regarding the biosafety law, which the market is paying more attention to, Yao Ming Kangde said that at present, the company's business and customer relationships are still strong. Judging from the new orders signed in January-February of this year, business operations are still proceeding at a normal pace.
Furthermore, in response to the previous voluntary application for termination of BIO membership, Yao Ming Kangde responded that the company voluntarily sent a letter to withdraw from BIO on March 12 to enable BIO to focus more on effectively communicating with policy makers from an industry perspective, enhance understanding of the industry, and raise public awareness of the pharmaceutical industry.
Editor/jayden