REMEGEN's stock price plummeted 5.22% during intraday trading on Wednesday, extending recent downward pressure on the innovative drug company.

The sharp decline comes amid escalating regulatory barriers between the US and China that are undermining the valuation logic for Chinese biotech firms. US legislators recently proposed including biotechnology in the scope of the COINS Act, which would restrict American capital from flowing into Chinese innovative drug companies. Simultaneously, market rumors suggest domestic regulators plan to impose pre-approval requirements on overseas business development transactions for innovative drug firms.

These dual regulatory pressures have created significant headwinds for the sector, with additional selling pressure coming from institutional investors reducing holdings and ETF funds experiencing consecutive net outflows. The broader biotech sector showed similar weakness during the trading session.