Changes in Hong Kong stocks | CRO concept stocks fluctuated higher, and on-hand orders showed a “sharp rise in volume and price”, and AI pharmaceuticals are expected to reshape the pharmaceutical research and development industry

The Zhitong Finance App learned that CRO concept stocks fluctuated higher in the afternoon. As of press release, Kingsley Biotech (01548) rose 10.71% to HK$34.32; Gloria Ying (06821) rose 8.5% to HK$142.9; Tiger Pharmaceuticals (03347) rose 7.11% to HK$41.56; and Kanglong Chemical (03759) rose 3.9% to HK$29.3.

In terms of news, according to the Shanghai Securities Report, the boom in the innovative drug industry is increasing and is being transmitted to the CRO industry chain at an accelerated pace. As innovative drug BD transactions continue to be active, pharmaceutical companies tend to have abundant R&D capital. In order to seize the innovative drug development window and guarantee project progress, pharmaceutical companies' willingness to pay for external R&D services has increased, and CRO companies have shown a “sharp rise in volume and price” trend. It is worth mentioning that the first original drug developed with the aid of artificial intelligence in China, epsvir, has been conditionally approved for marketing by the State Drug Administration. The analysis points out that AI-assisted drug development is more than just a concept; it can actually support original drugs from discovery to clinical trials to marketing.

According to the China Merchants Securities Research Report, the CXO sector's boom is clearly rising. In the first half of this year, the domestic CXO sector's revenue and net profit to mother increased by 24.5% and 52.7%, respectively. The profit growth rate was close to the highest point in the previous cycle; current orders and new orders picked up across the board, and leading companies raised their full-year guidance. Overseas, pre-clinical R&D demand reached an inflection point, and CharlesRiver DSA business book-to-bill hit a four-year high. In addition, AI pharmaceuticals are expected to reshape the pharmaceutical research and development industry and improve drug development efficiency, and the sector will also benefit.