The CXO concept stocks continued to rise in early trading. As of the time of publication, Wuxi Bio (02269) rose 4.6% to HKD 11.82; Wuxi AppTec (02359) rose 4.51% to HKD 35.95; Pharmaron (03759) rose 3.84% to HKD 9.73; Asymchem Laboratories (06821) rose 3.84% to HKD 41.95.
The CXO concept stocks continued to rise in early trading. As of the time of publication, Wuxi Bio (02269) rose 4.6% to HKD 11.82; Wuxi AppTec (02359) rose 4.51% to HKD 35.95; Pharmaron (03759) rose 3.84% to HKD 9.73; Asymchem Laboratories (06821) rose 3.84% to HKD 41.95.
On the news front, the U.S. Biosecurity Act will be voted on by the U.S. House of Representatives on September 9th local time. However, the bill still needs to be voted on by the Senate and the versions passed by both houses need to be reconciled before it can be submitted to the U.S. President for signing into law. Citigroup pointed out that it is currently unclear whether the U.S. Senate will adopt the House version of the Biosecurity Act or another version, or whether it will add additional provisions to the Biosecurity Act. The bank believes that the stock prices of Wuxi AppTec and Wuxi Bio are undervalued, but the uncertainty is affecting investor confidence in the CXO sector.
Xiangcai Securities pointed out that this bill may have the following adverse effects on China's biomedical industry: punishment and impact on companies engaged in pharmaceutical outsourcing and gene sequencing instrument; unfavorable impact on data acquisition for new drug research and development in China; shrinkage of the CXO industry and difficulties in financing for the pharmaceutical industry due to industrial relocation. Therefore, based on the above, we believe that the recent U.S. House of Representatives vote on the Biosecurity Act may have a short-term disruptive effect on the CXO sector, and we recommend closely monitoring the development of events.