On February 12, 2026, SKB BIO-B (06990.HK) declined by 3.33% against the broader market trend, closing at HKD 423.40 with a turnover of HKD 208 million. The drop was primarily influenced by the following factors:

Sector performance was weak. The Hang Seng Index fell 0.86% on the day, while the Hang Seng Tech Index dropped 1.65%. The biotechnology sector overall declined 0.84%. Technology stocks faced broad pressure, with major internet companies like Meituan and NetEase falling over 4%, contributing to a decline in market risk appetite that weighed on highly-valued biotech stocks.

Institutional views showed divergence. On February 12, Bank of America Securities released a research report. While it raised the company's target price from HKD 470 to HKD 479, it reiterated a "Neutral" rating. The report also lowered the annual treatment cost assumption for Sac-TMT due to adjustments in the National Reimbursement Drug List, leading to a 5% and 6% cut in revenue forecasts for 2026 and 2027, respectively. This adjustment may have sparked market concerns over the product's commercial profitability.

Technical indicators weakened. The stock price fell below the 5-day moving average of HKD 428.2. Although the MACD difference (-2.862) was above the signal line (-4.393), the histogram reading of 3.063 indicated insufficient bullish momentum.

Major capital outflows were observed. Net outflows from main funds totaled HKD 11.0892 million for the day, while retail investors saw net inflows of HKD 1.9568 million, reflecting cautious sentiment among large investors.

The company's valuation remains high. The trailing price-to-earnings ratio stood at -124.68 times, and the price-to-book ratio was 17.96, significantly higher than traditional pharmaceutical firms. Although Sac-TMT has gained approval for a fourth indication (HR+/HER2- breast cancer) and is included in the national reimbursement list, increased competition in the TROP2 ADC field—such as from AstraZeneca/Daiichi Sankyo's Enhertu—has raised concerns about its long-term pricing advantage.

Recent company developments offer limited near-term catalysts. While CICC maintained an "Outperform" rating with a target price of HKD 550, key catalysts for 2026, such as the FDA application for Sac-TMT and new clinical data, have yet to materialize, leaving a lack of major positive drivers to boost the stock in the short term.