The innovative drug concept continued its upward trend in Hong Kong trading.

Innocare (09969) rose 7.95% to HK$14.12, SBP GROUP (01177) gained 7.38% to HK$5.09, and KEYMED BIO-B (02162) advanced 7.01% to HK$87.05.

INNOVENT BIO (01801) increased by 6.04% to HK$93.10, CSPC PHARMA (01093) was up 5% to HK$8.40, and GENSCRIPT BIOTECH (01548) added 4.56% to HK$14.23.

The gains were supported by a favorable regulatory development. The National Medical Products Administration has issued a draft announcement for public comment regarding optimizing the review and approval process for cell and gene therapy products. The proposal supports the development of clinically valuable cell and gene therapies and includes plans to incorporate eligible products into a 30-day fast-track review channel for innovative drug clinical trials.

This is part of a series of supportive policies for the pharmaceutical sector this year. Furthermore, data indicates that the total value of Chinese pharmaceutical outbound licensing deals reached $99.7 billion in the first half of 2026, which is 1.9 times the full-year 2024 figure of $52.2 billion and approximately 73% of the 2025 full-year total of $135.7 billion.

Analysis suggests the internationalization of China's innovative drug sector is now entering a phase of accelerated realization. The next 3-5 years could represent a golden period for proof-of-concept validation, global Phase III clinical trial advancement, overseas regulatory approvals, and commercial sales expansion. Industry value is expected to shift progressively from licensing-out revenue toward global product income and long-term cash flow generation.

Despite the positive outlook, the overall valuation of the innovative drug sector in both A-shares and Hong Kong shares remains at historically low levels. A combination of factors, including the return of global capital, continuous breakthroughs in internationalization, and improving industry fundamentals, is currently driving a valuation recovery for the sector.