In 2026, many items are seeing price hikes—oil, chips, rare metals. Yet, a surprising commodity has recently caught public attention due to its massive price surge: medical research monkeys. Reports indicate that by July, the price of a single experimental monkey has skyrocketed to 200,000–250,000 yuan, an increase of over 40% from the end of 2025. Multiple pharmaceutical CRO companies have reported being "unable to find monkeys."
Why has the "senior monkey" experienced such a dramatic rise in value? What does the shortage of experimental monkeys mean for the pharmaceutical industry? And what potential investment trends lie behind this phenomenon?
The Core Industrial Signal Behind the Monkey Price Surge
In the clinical stage of drug development, animal testing is an indispensable step. Traditional "mice" are often inadequate for generating pharmacological reactions similar to humans for the complex biologics currently at the forefront of innovative drug research, such as multi-specific antibodies, antibody-drug conjugates (ADCs), and small nucleic acids. Therefore, experimental monkeys (cynomolgus and rhesus macaques), which share over 95% of their DNA with humans, have become irreplaceable models for pre-clinical safety evaluations of these complex biopharmaceuticals.
In recent years, China's innovative drug research has entered an explosive growth phase, with a surge in demand from pharmaceutical companies for pre-clinical studies. As experimental monkeys rely entirely on artificial breeding, with a self-breeding cycle of up to 4 to 5 years, supply has been unable to keep pace with the exploding demand, naturally driving the price of monkeys ever higher.
In May 2025, the market price for one experimental monkey was still around 92,000 yuan. By March 2026, it had risen to 131,000 yuan, climbing further to 178,000 yuan by June. In early July, some breeding companies and research institutions quoted prices exceeding 200,000 yuan, even reaching 250,000 yuan—an increase of over 40% compared to the end of 2025, with the upward trend continuing.
Many CRO companies indicate that "having no monkeys available" has become an industry norm. The high monkey price is not solely about supply-demand imbalance. It also sends a significant signal: the number of pipelines and First-in-Class (FIC) drugs under development at domestic innovative drug companies is "advancing by leaps and bounds." As overseas business development (BD) activities further expand, the moment of recovery for innovative drugs may be approaching.
The Complete Industry Chain: How a New Drug Reaches the Market
A new drug progresses from concept to market through four main stages: drug discovery, pre-clinical research, clinical trials, and marketing approval.
Step 1: Target Discovery and Lead Generation
Pharmaceutical companies identify treatment approaches and develop the drug's "design blueprint." This is the starting point for innovation, involving basic research like target screening, compound synthesis, and activity verification.
Step 2: Collaborative Research and Development
Once the drug blueprint is complete, it enters the pre-clinical research phase. Experimental monkeys are the core consumable in this stage. Without them, pre-clinical research cannot proceed, making subsequent clinical trials impossible. Notably, this field has extremely high barriers to entry. GLP (Good Laboratory Practice) certification is a mandatory requirement, with licenses being scarce and strictly regulated; not all companies can enter this space freely.
Step 3: Clinical Trials
After successful pre-clinical research, the drug moves into phase I, II, and III clinical trials.
Many pharmaceutical companies choose to outsource these steps to CXO companies. These firms possess specialized laboratories, professional equipment, and technical personnel, offering advantages in drug discovery, R&D, development, and pre-clinical studies, including patient recruitment, clinical data management, and statistical analysis. This allows drug companies to avoid building costly heavy-asset facilities and significantly lowers the barrier to R&D. The global network of CXOs also helps companies conduct trials simultaneously in different countries, accelerating the approval process.
Step 4: Submission for Approval and Launch
After successful clinical trials, the company submits a New Drug Application (NDA) to the National Medical Products Administration (NMPA). Upon government approval, the drug is granted marketing authorization.
Therefore, the essence of the rising monkey price is a genuine reflection of the domestic demand for innovative drug R&D. When companies are willing to pay a "high premium" for experimental monkeys, it indicates their pipelines have at least entered clinical trials. It is highly likely that multiple pipelines are activating simultaneously, creating the current "supply shortage." By the end of 2025, China had 4,751 innovative drugs in the pipeline, accounting for 33.7% of the global total, surpassing the United States to become the world's largest country for innovative drug R&D. In cutting-edge fields like cell therapy and ADCs, China's R&D share exceeds 45%.
Investment Opportunities in Innovative Drugs from Three Perspectives
When a new drug application is approved, it enters the commercialization phase. From this perspective, China's innovative drug industry is also facing multiple positive catalysts, with its growth logic consistently being validated.
First, the R&D landscape is improving. Beyond having the world's largest number of R&D pipelines, China is making continuous breakthroughs in advanced technology areas. Fields like ADCs, bispecific antibodies, small nucleic acids, and GLP-1 are constantly receiving positive clinical data catalysts. It's a case of "quantitative and qualitative improvement." At the 2026 American Society of Clinical Oncology (ASCO) annual meeting, the number of original Chinese studies selected for oral presentations reached 94, an increase of nearly 30% from 2025, and 13 were selected for the latest breakthrough abstracts, signaling that the quality of Chinese pipelines now has global competitiveness.
Second, Business Development (BD) and out-licensing are continuously materializing. Drug companies grant the overseas rights of their new drugs to multinational pharmaceutical companies through licensing agreements, receiving upfront payments and subsequent royalties. This is the primary model for the globalization of domestic innovative drugs. In this model, Chinese innovative drug companies are also performing exceptionally well.
Since 2026, the scale and pace of innovative drug BD out-licensing have been steadily increasing, moving from "single-product licensing" to "platform-level collaborations." The transaction scale and quality have simultaneously reached a new historical level. The total value of China's innovative drug BD transactions for the whole of 2025 reached $135.7 billion, a year-on-year increase of 159%. In the first half of 2026, the total value of Chinese innovative drug License-out deals reached $99.7 billion, approximately 73% of the 2025 total ($135.7 billion) and about 1.9 times the total for 2024 ($52.2 billion). Among the global top 10 pharmaceutical transactions, Chinese companies occupied eight spots. The total upfront payments exceeded $6.45 billion, and the average single transaction value increased by over 30% year-on-year. Leading A-share STAR Market innovative drug companies are core participants in this wave of out-licensing.
Third, policy support is strong. The 2026 Government Work Report explicitly stated the goal of building biopharmaceuticals into an emerging pillar industry. This provides a solid policy foundation for the high-quality development of the innovative drug industry from multiple dimensions, including top-level design, the payment system, and the industry development environment. Since the beginning of the year, efforts to significantly push innovative drugs into the medical and commercial insurance catalogs are also aimed at enabling domestic innovative drugs to achieve volume growth in the domestic market.
The preliminary review pass rate for the 2026 medical insurance catalog reached 92%, and a dedicated commercial health insurance innovative drug catalog was established for the first time, opening a new path for the commercialization of innovative drugs. The "National Essential Drugs List (2026 Edition)" released in July included a large number of innovative drugs for the first time, with blockbuster varieties like Semaglutide, Bevacizumab, and Telitacicept being included.
In reality, the development of the innovative drug industry is closely linked to sectors like CXO, API (Active Pharmaceutical Ingredients), and AI-driven drug discovery. An improvement in its vibrancy can transmit through the pharmaceutical industry chain via R&D, production, and technology empowerment. CXO companies provide R&D and production outsourcing services. Increased R&D investment and pipeline expansion will release demand for specialized services like drug discovery and clinical research, promoting the development of the pharmaceutical R&D service industry. APIs provide the basic guarantee for clinical research and commercial production. Continued project progress and accelerated commercialization will stimulate upstream production demand, extending industry chain prosperity to the production and supply sector. AI-driven drug discovery uses artificial intelligence to empower target discovery, molecular design, and clinical R&D, enhancing drug development efficiency and further expanding the technological application space of the pharmaceutical industry.
Consequently, the continued increase in the vibrancy of the innovative drug industry is expected to drive the coordinated development of related segments like R&D services, production supply, and technology empowerment, further enhancing its leading role in the pharmaceutical sector.
For investors bullish on the long-term trend of the innovative drug industry chain, one can pay attention to the Hong Kong-listed Innovation Drug ETF GF (513120) and its feeder funds A/C: 019670/019671. The Hong Kong Innovation Drug ETF GF (513120) tracks the CSI Hong Kong Innovation Drug Index (931787), offering T+0 trading for Hong Kong-listed innovation drugs in the "big out-licensing era." Its top ten constituent stocks include Innovent Biologics, Akeso, BeiGene, WuXi Biologics, CSPC Pharmaceutical Group, Sino Biopharmaceutical, Hansoh Pharma, WuXi AppTec, 3SBio, and XtalPi, with a combined weight of approximately 69.93%. The industry breakdown is roughly 43.2% biologics, 39.8% chemical pharmaceuticals, and 17% pharmaceutical services.
One could also consider the Innovation Drug ETF GF (515120) and its feeder funds A/C: 012737/012738. The Innovation Drug ETF GF (515120) tracks the CSI Innovation Drug Industry Index (931152), focusing on A-share innovation drug R&D leaders. Its top ten constituent stocks include WuXi AppTec, Hengrui Medicine, Kelun-Biotech, Salubris, Fosun Pharma, Huadong Medicine, Pharmaron, Changchun High-Tech, Tigermed, and BeiGene, with a combined weight of approximately 60%. The industry breakdown is 49% chemical pharmaceuticals, 24.5% medical services, and 20.5% biologics.
Additionally, one can look at the Hang Seng Bio-Tech ETF GF (159169), which tracks the Hang Seng Bio-Tech Index (HSBIO.HI). This fund taps into the core assets of Hong Kong-listed biotech companies, covering core biotech assets and focusing on cutting-edge bio-tech. Its top ten constituent stocks include WuXi Biologics, BeiGene, Innovent Biologics, CSPC Pharmaceutical Group, Akeso, Sino Biopharmaceutical, WuXi AppTec, Hansoh Pharma, 3SBio, and XtalPi, with a combined weight of approximately 71.42%. The industry breakdown is 92.5% pharmaceutical and biotech.
Data source: Wind, as of July 13, 2026. Industry classification is based on Shenwan Secondary Industry Classification. The above data is point-in-time data. The index compiler may adjust the index compilation methodology and sample stocks in the future, and the composition and weight of index constituent stocks will change accordingly. Investors are advised to pay attention to the risks associated with such adjustments. Industry classification for the CSI Hong Kong Innovation Drug Index and CSI Innovation Drug Industry Index is based on Shenwan Secondary Industry; for the Hang Seng Bio-Tech Index, it is based on Wind Secondary Industry Index. The above stocks are constituent stocks and do not constitute a recommendation. Funds involve risks; investment must be cautious.
Sales fees for the Hong Kong Innovation Drug ETF GF and Innovation Drug ETF GF are as follows: When subscribing for fund shares, the subscription agent broker may charge a commission of up to 0.50%; when redeeming fund shares, the redemption agent broker may charge a commission of up to 0.50%. On-exchange trading fees are subject to actual charges by the securities company.
Sales fees for the Hang Seng Bio-Tech ETF GF are as follows: When subscribing for fund shares, the subscription agent broker may charge a commission of up to 0.30%; when redeeming fund shares, the redemption agent broker may charge a commission of up to 0.50%. On-exchange trading fees are subject to actual charges by the securities company.
The Hong Kong Innovation Drug ETF GF feeder fund is divided into A and C share classes, with fund codes 019670/019671. Class A shares charge subscription fees but do not accrue sales service fees from the fund's assets; Class C shares do not charge subscription fees but accrue sales service fees from the fund's assets at a rate of 0.30% per annum. Subscription amount (M) and rate for Class A shares: M<1 million yuan is 1.20%; 1 million yuan ≤ M < 5 million yuan is 0.80%; M ≥ 5 million yuan is 1,000 yuan per transaction. Holding period (D) and redemption rate for Class A shares: D < 7 days is 1.50%; 7 days ≤ D < 30 days is 0.50%; D ≥ 30 days is 0. Holding period (D) and redemption rate for Class C shares: D < 7 days is 1.50%; D ≥ 7 days is 0.00%. Please refer to the prospectus and other legal documents and fund announcements for details.
The Innovation Drug ETF GF feeder fund is divided into A and C share classes, with fund codes 012737/012738. Class A shares charge subscription fees but do not accrue sales service fees from the fund's assets; Class C shares do not charge subscription fees but accrue sales service fees from the fund's assets at a rate of 0.20% per annum. Subscription amount (M) and rate for Class A shares: M<1 million yuan is 1.20%; 1 million yuan ≤ M < 5 million yuan is 0.80%; M ≥ 5 million yuan is 1,000 yuan per transaction. Holding period (D) and redemption rate for Class A shares: D < 7 days is 1.50%; 7 days ≤ D < 30 days is 0.50%; D ≥ 30 days is 0. Holding period (D) and redemption rate for Class C shares: D < 7 days is 1.50%; D ≥ 7 days is 0.00%. Please refer to the prospectus and other legal documents and fund announcements for details.
Risk Disclosure: The above funds invest in the securities market. Before investing, investors must fully understand the product characteristics of these funds and bear the various risks that arise during fund investment. The above funds are issued and managed by GF Fund Management Co., Ltd. The selling institution does not assume responsibility for the investment or payment of the product. Please read the fund contract and prospectus of the above funds carefully before investing to fully understand the details and risk characteristics of these funds. The above funds are equity funds, with risks and returns higher than mixed funds, bond funds, and money market funds. The specific risk rating results are subject to the ratings provided by the fund manager and selling institution. Please select products that match your risk tolerance and investment objectives. Funds involve risks; investment must be cautious.