On August 20, the Nasdaq Biotechnology Index jumped 6.39%, marking its largest single-day gain in six years. Moderna soared 176.97%, adding $44 billion in market value, while Merck closed up 12.6%, its biggest one-day rise since March 2009. The rally followed the announcement that the two companies' jointly developed melanoma skin cancer vaccine met its goals in a large-scale trial.
According to financial data provider Zhitong Finance, Moderna and Merck revealed that their mRNA-based melanoma cancer vaccine achieved its primary endpoint in a Phase III clinical trial, a milestone that directly ignited the global pharmaceutical sector. Moderna's breakthrough validated the commercial potential of mRNA technology in oncology treatment, boosting confidence across the entire biotech track. Hong Kong-listed innovative drug and CDMO stocks may now experience broad beta recovery.
Where the opportunities lie
3D MEDICINES (01244) focuses on treating tumors as chronic diseases and operates an mRNA-LNP tumor vaccine platform. Its innovative immunotherapy drug Envafolimab presented key clinical results at this year's ASCO annual meeting, aligning with global trends in tumor immunotherapy. The company has built three technology platforms: in vivo CAR-T/NK, mRNA-LNP tumor vaccines, and radiopharmaceuticals. Its universal mRNA-LNP tumor vaccine candidate, 3D124, leverages AI-driven antigen screening and proprietary LNP delivery technology to bypass international patent barriers and significantly enhance delivery efficiency. Preclinical studies show notable tumor suppression, with plans to file IND applications in both China and the US by 2026. The next-generation PSMA-targeting radiopharmaceutical 3D1015, benchmarked against approved products in its class, has demonstrated tumor inhibition at one-quarter of the standard dose in preclinical models, with the first patient dosed in an investigator-initiated trial in August 2025. For in vivo CAR-T, the CD7-LNP approach used in 3D128 places the company in the global first tier, with preclinical transfection efficiency exceeding published literature data, an off-the-shelf dosing pathway that improves accessibility, and a favorable safety profile for the LNP route.
WUXI BIO (02269), a leading CDMO provider and key player in the pharmaceutical R&D services space, is also poised for sentiment recovery as global drug development pipelines undergo value repricing. The company recently announced that its drug substance facility MFG8 at the Shijiazhuang base in Hebei Province passed the US Food and Drug Administration's Pre-License Inspection, supporting the commercial production of an autoimmune disease treatment. WUXI BIO CEO Dr. Chris Chen stated that passing the FDA PLI not only confirms the company's ongoing investment in building a world-class quality system but also demonstrates its reliable capability to support partners in advancing global commercial manufacturing.
GenScript Biotech (01548) exceeded expectations in its latest results, according to CICC, primarily driven by strong growth in its life sciences business fueled by AIDD and improved operating efficiency. JPMorgan noted that GenScript's first-half performance beat estimates, with management positioning AI-driven drug discovery and development (AIDD) as a key driver of revenue and profit growth, margin expansion, and upward guidance revisions. Management views the AIDD opportunity as structural and sustainable, as clients shift from proof-of-concept to repeatable, large-scale wet lab validation and model iteration, areas where GenScript has the capability to deliver. On capacity, management emphasized that modular automation, planned capacity expansion, and ample liquidity are sufficient to support a capital expenditure plan of approximately $130 million for 2026.
Zai Lab (09688) may benefit from recent developments in the autoimmune space. On August 17, immunology company argenx announced positive topline results from the Phase III ALKIVIA study evaluating its FcRn antagonist efgartigimod alfa in adult patients with autoimmune myositis. Notably, argenx has exclusively granted Zai Lab the rights to develop and commercialize efgartigimod in Greater China. The ALKIVIA study is a global Phase III trial initiated by argenx, with Zai Lab participating in clinical development and patient enrollment in Greater China. If this indication receives global approval, Zai Lab could further expand its commercial footprint for efgartigimod in China's autoimmune disease market.