① What technological breakthroughs have driven improvements in the research and development efficiency of the Biomedical Industry? ② What are the reasons for the leading rise of WUXI BIO affiliated enterprises?
According to the Financial Association on March 14 (Editor Hu Jiarong), the Hong Kong stock market's pharmaceutical sector showed a strong upward trend today, with Innovative Drug companies collectively strengthening under the multiple bullish drivers of technological breakthroughs, performance recovery, and improved policy expectations.
As of the midday close, $WUXI BIO (02269.HK)$ Increased by over 13%, $WUXI XDC (02268.HK)$ An increase of over 11%, $TIGERMED (03347.HK)$ Increased by over 7%, $WUXI APPTEC (02359.HK)$ Increased by over 5%.
Technological innovation reconstructs the Industry structure.
The Biomedical field is undergoing a paradigm shift brought about by AI technology:
Fundamental technology breakthroughs: Models like DeepSeek and AlphaFold have achieved over 90% accuracy in protein structure prediction, and domestic teams have successfully tackled the structural analysis of 5 GPCR drug targets.
Research and development efficiency has surged: The Chemistry42 platform, jointly developed by WUXI APPTEC and Asia Vets, has compressed the optimization cycle of lead compounds by 78% to 4 months using reinforcement learning algorithms, saving over 30 million yuan in R&D costs per project.
Industry applications are deepening: leading CXO companies are accelerating the construction of AI technology barriers, forming differentiated competitive advantages in key areas such as target discovery and process optimization.
WUXI Group leads in growth.
From the above chart, $WUXI BIO (02269.HK)$ 、 $WUXI XDC (02268.HK)$ 、 $WUXI APPTEC (02359.HK)$ all have significantly strengthened.
This performance is linked to the dynamics of WUXI XDC. The company has won four awards at the "2025 Asia-Pacific Biopharmaceutical Excellence Awards" for its ADC conjugated drug technology, establishing a leading position in global bioconjugate technology.
At the same time, $VIVA BIOTECH (01873.HK)$ it also experienced a significant increase, now up over 21%; the company's performance forecast shows that the expected net income for 2024 is between 0.21-0.24 billion yuan, achieving a turnaround from the loss position compared to the previous year.
The policy environment is improving marginally.
Huaxin Securities pointed out that the probability of the USA's bioterrorism safety laws being passed has significantly decreased, and China’s CDMO companies still have a global competitive cost advantage. Although the global pharmaceutical investment and financing in 2024 has not yet fully warmed up, signs of stabilization are already appearing, with the CRO industry achieving a doubling of efficiency in preclinical research through AI applications.
The institution predicts that more CRO companies will achieve differentiated competition through the application of AI technology, especially in improving preclinical research efficiency and controlling research and development costs.
GTJA's research report emphasizes that AI technology is reshaping the value distribution of the Biomedical Industry Chain, with generative AI increasing the efficiency of molecular structure design by 5 to 8 times, driving the Industry's transformation from labor-intensive to intelligent innovation-driven.
The Brokerage pointed out that with the increase in technology penetration and the reduction of policy uncertainty, Chinese pharmaceutical outsourcing companies with a Global layout and technological accumulation are expected to continue to gain valuation recovery opportunities, entering a critical window for smart upgrades.
Editor/jayden
Today, after hitting the high near 24,000 in the early session and entering bearish positions, the index fell sharply by nearly over 600 points, immediately recouping yesterday's losses significantly.
Moreover, today it broke the new high again, reaching a maximum of 24,076, but by the end of the market, it fell back by about 70 points, producing a bearish candle. The current trend has not yet been broken, but from the previous low until now, it has risen close to 6,000 points. It is believed that those with positions can continue to hold until there is a clear trend reversal for profit-taking. Those without positions can wait for a pullback to get in. Actually, it is hoped for a quick pullback, as it allows for entry and also provides a healthy breath.
Currently, the outlook remains the same as before. It is believed that even if there is a pullback, it shouldn't be too deep. However, if Futures fail to stabilize and close below 22,350, there may still be room for decline. The chance of Futures falling below 21,400 in the short term should be low, so it is considered that if a significant pullback occurs, it presents a good opportunity to incrementally go long. Recently, there has been a consistent approach to not hold positions overnight, only focusing on immediate trades, as there is no high chasing and no casual short selling.
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