Pharmaceutical stocks have continued their sluggish performance over consecutive days, with declines expanding further in the afternoon session. As of press time, VIVA BIOTECH (01873) dropped 7.53% to HK$2.58; ASCLETIS-B (01672) fell 7.09% to HK$9.17; KEYMED BIO-B (02162) declined 5.74% to HK$64.

Securities analysts indicate that entering Q3 2025, the overseas expansion trend continues, but listed companies have seen fewer major business development deals, and NewCo-format BD transactions have also failed to meet market expectations. Short-term escalation of US-China trade conflicts may raise market concerns about future decoupling risks, but the global shift of innovative R&D toward more efficient operations in China remains an unstoppable trend. Analysts believe that drug price negotiations between the US government and multinational corporations, with resulting price reductions, will further strengthen demand for efficient and cost-effective Chinese new drug developments.

Internationally, the US Senate has passed a new version of the Biosecurity Act. The new legislation does not specifically name related companies, and its impact on Chinese CRO enterprises is extremely limited.

Investment analysts believe that Chinese innovative pharmaceutical companies are moving onto the global stage and possess competitive advantages in many specialized sectors. Although short-term policy impacts may cause slight pullbacks, the industry trend remains unchanged from a medium to long-term perspective, and the innovative drug sector continues to be an important investment theme for the next 2-3 years. Additionally, Chinese CXO companies play crucial roles in the global innovative pharmaceutical industry chain. The Biosecurity Act has undergone multiple iterations, with virtually no impact on leading companies' operations. The CXO industry is currently in a recovery phase of business prosperity, and continued earnings growth is expected to restore market confidence.