Innovative drug concept stocks saw expanding declines in the afternoon session. As of press time, INNOVENT BIO (01801) fell 5.3% to HK$94.65; INNOCARE (09969) dropped 3.72% to HK$17.35; UNITED LAB (03933) declined 3.03% to HK$16.31; HUTCHMED (00013) fell 1.98% to HK$24.74.

On the news front, U.S. President Trump stated that he would slash drug prices to 1/1400 to 1/1500 of current levels and would swiftly impose tariffs on pharmaceuticals. Analysts point out that if implemented, this could create shockwaves across the global pharmaceutical industry. For Chinese biomedical stocks, this presents both opportunities and challenges in equal measure.

Morgan Stanley previously released a research report stating that the likelihood of imposing tariffs on business development (BD) transaction payments is relatively low. Currently, U.S. tariffs primarily target tangible goods with a focus on production reshoring, while service-related revenues (including intellectual property transfers) receive less attention, particularly given that the U.S. maintains a services trade surplus with China. Additionally, most BD transaction agreements include granting global licensing parties development and manufacturing rights, with some licensing parties indicating plans to produce these approved licensed drugs locally in the U.S. following approval.