According to the Zhitong Finance APP, CRO concept stocks rose collectively in the afternoon. As of press time, Tigermed (03347) rose 9.85% to HKD 29.55, Frontage (01521) rose 6.58% to HKD 0.81, Pharmaron (03759) rose 4.72% to HKD 8.65, Asymchem Laboratories (06821) rose 2.47% to HKD 47.65, and Wuxi Bio (02269) rose 1.97% to HKD 11.4.

Pacific Securities pointed out that the innovative drug CXO is currently at the bottom of the industry cycle, and its performance growth rate has slowed down or declined. It still takes a certain amount of time for the recovery of investment and financing from Biotech, the landing of orders, and the improvement of performance in the future. The generic drug CXO continues to grow at a high rate, and new orders maintain a high growth rate. The future development trend is good. With the end of the Federal Reserve's interest rate hike cycle, gradual easing of liquidity is expected to bring about a recovery in investment and financing, and overseas demand will improve before domestic demand does. At the industry level, it is recommended to pay attention to the following: changes in the Federal Reserve's interest rate policy, marginal changes in investment and financing, gradual recovery of overseas demand, geopolitical issues, and the introduction of potential domestic innovation drug industry chain support policies.

Xinda Securities believes that the continuous growth of offshore outsourcing contract amount further verifies the global trend of order transfer. Although European and American CXOs occupy the main global market, due to reasons such as labor costs, environmental pressure, and capacity allocation, global capacity continues to shift to countries such as China and India. It is expected that the cost advantages brought by the engineering dividend will continue for a long time.