Jingu Finance News | China Tai International stated that the US election results have limited impact on most companies in the pharmaceutical industry. Currently, apart from the pharmaceutical research and development outsourcing services (CXO) sector in the pharmaceutical industry which may be affected by the US Biotech Act, other sectors are not significantly affected due to the fact that most companies' main sources of income are in China, and are not greatly affected by geopolitical factors. Chinese pharmaceutical companies started going global around 2019. According to the bank's understanding, only nine Chinese innovative drugs have been approved in the US from 2019 to date. Moreover, US hospitals typically prefer domestic products when selecting medications, so the bank believes that Chinese pharmaceutical companies will still find it difficult to pose a threat to the US pharmaceutical industry in the short term. Currently, the bank sees limited impact of US policies on Hong Kong-listed pharmaceutical companies other than the CXO sector.

In the short term, the bank's stock selection mainly considers the certainty of performance in 2024, the impact of medical insurance negotiations and volume-based procurement, and focuses on recommending Sino Biopharm (01177) and Hansoh Pharma (03692). The bank expects both companies to report good performance in 2024, and neither of their main products is expected to be included in the tenth batch of centralized procurement, so the impact of medical insurance negotiations on their main products is expected to be minimal. In addition, the bank also recommends paying attention to the medical insurance negotiation results of Akeso (09926)'s new drug Tabrecta. If the product can be included in medical insurance at a reasonable price, it will be a bullish factor for the company.