①Why has the biopharmaceutical sector recently drawn significant market attention? ②How do institutions perceive recent policies?
On March 6, the biopharmaceutical sector of the Hong Kong stock market showed significant strength. As of the time of writing, $TRANSTHERA-B (02617.HK)$up 36.51%, $IMMUNEONCO-B (01541.HK)$ up 19.84%, $BIOCYTOGEN-B (02315.HK)$up 18.19%, $SIRNAOMICS-B (02257.HK)$ up 10.77%, $DUALITYBIO-B (09606.HK)$ 、 $REMEGEN (09995.HK)$ 、 $KEYMED BIO-B (02162.HK)$ and other multiple stocks followed the upward trend.
In terms of news, the 2026 National Two Sessions government work report for the first time explicitly included the biopharmaceutical industry as part of the national 'emerging pillar industries,' alongside sectors such as integrated circuits, aerospace, and low-altitude economy. This move marks a historical elevation in the strategic position of biopharmaceuticals, sending a clear policy signal to strengthen top-level design and accelerate industrial upgrading, thereby injecting certainty into the industry's long-term development.
A research report by GF Securities pointed out that innovative drug companies are entering a critical window for turning losses into profits: throughout the year, clinical data catalysts are concentrated, BD overseas pipeline progress is proceeding smoothly, and the investment value of the sector is becoming prominent. Recommended areas for allocation include:
Focus on specific tracks: closely monitor targets in cutting-edge technology fields such as small nucleic acids, bispecific antibodies, and ADCs.
Earnings mining: seize the earnings forecast window and screen for companies exceeding expectations.
Data foresight: pay attention to international academic conferences such as ASCO and ESMO to capture opportunities for the release of key clinical data.
Several pharmaceutical companies reported positive performance last year.
In addition to favorable policies, the improved performance of some pharmaceutical stocks boosted the industry's overall performance.
RemeGen's total operating revenue for 2025 reached 3.251 billion yuan, increasing by 89.36% year-on-year; net profit attributable to shareholders was 709 million yuan, successfully reversing losses. Growth was driven by increased sales of core products Telitacicept and Disitamab Vedotin, combined with significant increases in technology licensing revenue from granting Telitacicept's overseas rights to Vor Biopharma.
Hutchmed reported revenue of $549 million in 2025, representing a year-over-year decrease of 12.96%. Shareholder attributable profit reached $457 million, reflecting a year-over-year increase of 1111.03%. The company simultaneously issued revenue guidance for its oncology and immunology businesses in 2026, projecting $330-$450 million.
Biocytogen anticipates revenue of RMB 1.379 billion in 2025, marking a year-over-year increase of 40.63%. Net profit attributable to shareholders is expected to reach RMB 173 million, with a year-over-year surge of 416.37%, while non-GAAP net profit stands at RMB 116 million, up by 405.39% year over year. High-intensity R&D investment has built a technological moat, driving steady growth in high-margin businesses and continuously validating innovation conversion efficiency.
It is evident that the policy direction aims to elevate the strategic level of the industry. Combined with clinical breakthroughs achieved by enterprises and the realization of financial performance, the biopharmaceutical sector is transitioning from an 'R&D investment phase' to a 'value harvest phase.' Companies equipped with core technology platforms, global operational capabilities, and robust commercialization execution are poised to maintain leadership in the industrial upgrade wave, offering mid-to-long-term allocation value to investors.
Editor/Rice
