Hengrui Pharma's stock plummeted 5.01% intraday, extending recent losses as investors continue to grapple with regulatory uncertainties affecting the innovative pharmaceutical sector.

The decline reflects mounting concerns over dual policy pressures from both the United States and China. On the US side, the House Select Committee on China has formally urged the Treasury to add biotechnology to the COINS Act prohibited investment list, explicitly naming Hengrui's $15.2 billion co-development deal with Bristol-Myers Squibb as a case of American capital empowering Chinese biotech. Simultaneously, a draft revision to China's Prohibited and Restricted Export Technology Catalogue reportedly seeks to restrict outbound transfers of core platform technologies in antibodies, ADCs, and gene therapy.

Although Hengrui has stated that its Co-Co collaboration model does not involve full technology ownership transfer and operations remain normal, investor sentiment has remained fragile amid these persistent policy uncertainties. The broader pharmaceuticals sector saw widespread weakness in response to these regulatory headwinds.