By Jason Chau
Shares of Xuanzhu Biopharmaceutical surged Wednesday after it gave an update on a clinical trial for a breast cancer drug, coming amid rising investor enthusiasm toward the Chinese pharma sector.
The Beijing-based company's stock rose over 30% in Hong Kong, reaching its highest levels since listing earlier this month, outperforming the Hang Seng Biotech index, which was down 2%.
Shares were last at HK$58.60 versus the IPO price of HK$11.60, implying a market capitalization of about US$3 billion, according to LSEG data.
The Chinese drugmaker, which was spun off from Hong Kong-listed Sihuan Pharmaceutical, said in a filing Wednesday that it had presented interim analysis results of a Phase III clinical study of its Bireociclib treatment for advanced breast cancer.
Xuanzhu said the data indicated that the experimental drug can reduce the risk of disease progression or death by 47%, compared with standard endocrine therapy combined with placebo.
China's biotech companies have made significant advances in cutting-edge drugs and treatments development in recent years, drawing the interest of global pharmaceutical giants and investors.
"China is starting to become a critical partner and competitor in the race for next-generation therapies," Sean Laaman at Morgan Stanley said in a recent note.
"Chinese cutting-edge drugs are matching those from established Western firms in quality, pace and price across multiple categories, including from oncology to immunology," said Dr. Ruby Wang, director at Lintris Health, a China-focused health consultancy.
Despite the day's declines, the Hang Seng Biotech Index--a key industry benchmark--is up close to 90% so far this year, significantly outperforming the broader Hang Seng.
Write to Jason Chau at jason.chau@wsj.com
(END) Dow Jones Newswires
October 22, 2025 04:18 ET (08:18 GMT)
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