Earnings forecasts from multiple companies have driven a recovery in Hong Kong's biotech sector. What are the highlights?
At the start of the year, pharmaceutical enterprises' business development overseas remains robust. How strong is the overall performance?
Following the recent release of impressive earnings reports by several biopharmaceutical stocks, the innovative drug sector in Hong Kong's stock market also saw renewed activity today.
As of press time,$WUXI XDC (02268.HK)$rose more than 8%,$WUXI BIO (02269.HK)$、$AKESO (09926.HK)$Surging over 5%,$EVEREST MED (01952.HK)$、$ZAI LAB (09688.HK)$A group of individual stocks also rose by more than 4%.
In terms of news, according to Wind data, as of February 26th, a total of 80 listed companies in the pharmaceuticals and biotechnology industry have received institutional research this year. Industry insiders stated that under the wave of major technological advancements in AI, the pharmaceuticals industry is expected to unleash new growth logic. The main line of pharmaceutical technology innovation continues to be favored, with key focus on brain-computer interfaces, AI healthcare, and innovative drug exports.
On the other hand, with the approach of the Q1 and annual report disclosure window, several innovative drug concept stocks successively announced impressive earnings this week, which may continue to drive speculation around profit growth forecasts.
On February 26, $BEONE MEDICINES (06160.HK)$Announced its earnings report, showing total operating revenue of 38.205 billion yuan for the fiscal year 2025, a year-on-year increase of 40.4%; net profit was 1.422 billion yuan, reversing losses to profitability year-on-year.
In addition,$BIOCYTOGEN-B (02315.HK)$Previously disclosed, total revenue for 2025 reached 1.379 billion yuan, a year-on-year increase of 40.63%, with net profit surging by 416.37% year-on-year to 173 million yuan. Simcere Pharmaceutical also projected that its net profit for 2025 would grow by 80.1%-93.9% year-on-year.
Open Source Securities noted that the total package value of China's innovative drug License-out transactions grew from $2.562 billion in 2017 to $140.274 billion in 2025, reflecting enhanced international competitiveness. Over 70% of innovative drug companies achieved positive revenue growth in 2025, indicating the industry is gradually entering a period of commercial harvest, with the current valuation of the pharmaceuticals sector showing significant cost-performance advantages.
It is worth noting that, according to PharmaCube data, as of February 15, 2026, the upfront payment scale of China’s innovative drug outbound BD transactions in 2026 exceeded that of any quarter in 2025, with the total amount surpassing one-third of the full-year level in 2025. This indicates that the core driving force behind the current cycle reversal in the innovative drug industry remains strong.
Guolian Minsheng Securities Research stated that during the Spring Festival period in 2026, China's innovative drug outbound BD transactions achieved a strong start. Based on the current transaction heat and scale, 2026 is expected to continue the high growth trend seen in 2025, with the industrial trend of innovative drug BD rapidly advancing and intensifying.
Editor/Melody
