Pharmaceutical stocks experienced a collective surge! This afternoon (January 26), pharmaceutical stocks strengthened significantly, led by gains in biological vaccines, in vitro diagnostics, and hepatitis-related sectors. Among them, Kepu Biotech saw its stock price rocket straight up to hit the 20% daily surge limit, a move that took less than one minute; stocks like Neptunus Bio and Kehua Biotech also successively hit their surge limits. The sudden emergence of a Nipah virus outbreak in India, which has so far resulted in 5 confirmed cases including medical personnel, may have stimulated the rise in pharmaceutical stocks. Additionally, multiple innovative drug BD deals were finalized early in the year, indicating a positive trend for Chinese innovative drugs going global. Some brokerages and research institutions have stated that with more domestic innovative drugs entering overseas markets, the normalization of medical insurance negotiations, and the maturation of the industrial chain, the innovative drug sector is expected to remain a core direction for capital allocation.
In the afternoon, pharmaceutical stocks suddenly surged, with Kepu Biotech rocketing to its limit-up. Stocks such as Neptunus Bio, Kehua Biotech, Mike Bio, and Jindike also successively locked in at their daily limit-up prices. Prior to this, stocks like Hualan Vaccine, Lukang Pharmaceutical, and Daan Gene had already hit their surge limits. By the afternoon market close, the biological vaccine and flu indices had risen by over 3%, while the in vitro diagnostics and hepatitis indices increased by more than 2%. According to reports, recent Nipah virus infection cases have appeared in the West Bengal state of eastern India, with 5 confirmed cases so far, including healthcare workers. It is reported that nearly 100 people have been required to undergo home quarantine, and the infected individuals are receiving treatment in hospitals in Kolkata, the state capital, and surrounding areas, with one patient in critical condition. The Civil Aviation Authority of Thailand announced that starting January 26, comprehensive screening will be implemented for flights originating from India's West Bengal to prevent the importation of the Nipah virus into Thailand.
According to introductions from organizations like the World Health Organization, the Nipah virus can attack the lungs and brain, with symptoms including fever, headache, drowsiness, confusion, and coma; the mortality rate for infected individuals can exceed 40%. The incubation period from infection to the appearance of symptoms for this virus is generally 4 to 14 days, and can be as long as 45 days. Currently, there is no specific vaccine or effective therapy for the Nipah virus. News of the approval for marketing of a new early lung cancer diagnostic kit in China has also provided a boost to the A-share pharmaceutical sector. It was reported on January 26 that a research team has successfully developed a thirteen-lung-cancer-associated antibody detection kit (flow fluorescent immunoassay), which has officially obtained a Class III medical device registration certificate from the National Medical Products Administration, and is expected to improve the early diagnosis rate of lung cancer. This kit has completed testing, incorporating a total of 1,463 patients with pulmonary nodules, including 794 lung cancer cases, with early-stage lung cancer samples accounting for 58.19%. Data shows its detection sensitivity for early lung cancer exceeds 65%, with accuracy superior to traditional tumor markers.
Institutions are optimistic about the innovative drug sector. The booming trend of innovative drug outbound BD deals has also supported the pharmaceutical market sentiment. The year 2025 was a landmark year for Chinese innovative drugs going global. According to a database, by December 31, 2025, the total annual transaction value for Chinese innovative drug BD outbound licensing deals reached $135.655 billion, with upfront payments of $7 billion, and the total number of deals reached 157, with statistics across all dimensions reaching record highs. CMB International points out that, building on the explosive growth of innovative drug BD outbound licensing transactions in 2025, several BD deals have already been finalized early in 2026, reflecting the high activity level of Chinese innovative drug outbound licensing transactions. Chinese companies may become more cautious about transferring pre-clinical molecules; future outbound molecules from China will mostly be达成 based on possessing early-stage clinical trial data from China to achieve higher transaction value.
Sinolink Securities stated that in 2026, with more domestic innovative drugs going global, the normalization of medical insurance negotiations, and the maturation of the industrial chain, the innovative drug sector is expected to continue to be a core direction for capital allocation. In terms of stock selection, they remain bullish on leading companies with competitive core pipelines, global layout capabilities, and certainty in delivering performance. Investment in the medical device sector will focus on going global and innovation; going global will bring additional growth space for enterprises, while innovative products will support corporate profit margins during periods of declining traditional business prices. It is recommended to continuously pay attention to high-quality assets in left-side sectors such as leading traditional Chinese medicine OTC companies and leading pharmacy chains, which are at low valuation levels.