Shares of contract research organization (CRO) companies trading in Hong Kong moved mostly higher during Wednesday's session. As of the time of writing, Joinn Laboratories (China) Co Ltd (06127) gained 6.64% to HK$28.28, Pharmaron Beijing Co Ltd (03759) rose 3.30% to HK$31.26, Genscript Biotech Corporation (01548) advanced 3.02% to HK$41.68, and Hangzhou Tigermed Consulting Co Ltd (03347) edged up 1.59% to HK$47.32.
On the news front, the total value of out-licensing deals involving innovative drugs this year has surpassed US$120 billion, marking a year-over-year increase of 36%. Market analysts suggest that, with ongoing active business development (BD) transactions in the innovative drug space, pharmaceutical companies are enjoying healthier research funding. To seize the development window for new therapies and safeguard project timelines, these firms are showing greater willingness to pay for external R&D services, leading to a trend of rising order volumes alongside higher pricing for CRO providers.
Additionally, the global surge in AI for Science (AI4S) partnerships is expected to bring substantial benefits to domestic contract development and manufacturing organizations (CDMOs). On September 16, Eli Lilly's TuneLab added Genscript Biotech Corporation, Twist Bioscience, and Ginkgo Bioworks as new experimental service suppliers on the same day, intensifying the race to accelerate wet-lab validation steps.
Bohai Securities believes that the domestic investment and financing environment is showing gradual signs of recovery. Since the start of 2025, major BD transactions in innovative drugs have injected ample capital into R&D, keeping demand on a steady rise. On the supply side, following earlier capacity consolidation, experimental monkey prices have stabilized and rebounded, strengthening the bargaining power of leading players. As a result, new contract signings are expected to achieve simultaneous growth in volume and pricing.
Regarding external demand, global early-stage financing for innovative drugs has posted growth, while leading domestic firms have carved out differentiated advantages in relevant fields. With a robust backlog of orders, some companies have raised their full-year performance guidance for 2026, further confirming the sector's sustained high prosperity.