Hengrui Pharma(SH:600276) Zhong Guo Zheng Quan Bao·2025-08-18 20:15Core Viewpoint - The Hong Kong stock market is witnessing a significant surge in the innovative drug sector, with the Hang Seng Hong Kong Stock Connect Innovative Drug Index rising over 110% since the beginning of the year, indicating a robust interest and investment in the biotech and healthcare industries [1] Group 1: Market Activity - 15 biopharmaceutical and healthcare companies have successfully listed on the Hong Kong Stock Exchange (HKEX) this year, raising a total of 189.93 billion HKD [2] - The leading innovative drug company, Hengrui Medicine, raised 98.9 billion HKD in its secondary listing, making it the top fundraiser in the Hong Kong pharmaceutical sector this year [2] - There is a notable disparity in fundraising amounts among newly listed companies, with 11 companies raising less than 10 million HKD, indicating a "head and tail" structure in the market [2] Group 2: Policy Support - The Hong Kong Stock Exchange has introduced new listing rules to facilitate the entry of biotech companies, significantly lowering the financing threshold for R&D-focused firms [3] - The Hong Kong Securities and Futures Commission has launched a "Special Technology Company Route" to streamline the listing process for innovative companies, reinforcing Hong Kong's position as a preferred listing platform [3] - Recent measures from the National Healthcare Security Administration and the National Health Commission aim to support the high-quality development of innovative drugs, including increased R&D support and inclusion in insurance directories [3] Group 3: International Expansion - The trend of Chinese innovative drug companies licensing out their products is gaining momentum, with a record potential milestone payment of approximately 12 billion USD from Hengrui Medicine's agreement with GSK [5] - The number of license-out transactions is expected to reach 94 in 2024, with a total transaction value of 519 billion USD, reflecting a 26% year-on-year increase [6] - The shift towards sustainable revenue generation through licensing agreements is anticipated to redefine the innovative drug sector in the Hong Kong market [6]