BD total contract amount has exceeded 50 billion; innovative drug concept rebounds; Zhongyuan Xiehe hits the daily limit

On March 6, innovative drug concepts experienced intraday fluctuations and rebounds, with Zhongyuan Xiehe (600645.SH) hitting the daily limit, Yahong Pharmaceutical approaching the 20% limit, and Beilu Pharmaceutical (300016.SZ), Shanghai Yizhong (688091.SH), Sanyuan Genetics (920344.BJ), and Rejing Biotech (688068.SH) showing significant gains.

In terms of news, the government work report listed biomedicine as a new pillar industry, alongside integrated circuits, aerospace, and low-altitude economy. In just over two months since 2026, the total BD contract amount has exceeded 50 billion yuan, surpassing 40% of 2025.

Additionally, on March 4, China Biological Pharmaceutical announced an exclusive global licensing agreement with Sanofi for the world’s first JAK/ROCK dual-target inhibitor, Rovaxtinib. China Sinopharm is entitled to a maximum payment of $1.53 billion and will also receive tiered royalties based on annual net sales, with double-digit percentages.

Southwest Securities previously stated that the total BD contract amount in the first two months of 2026 exceeded $50 billion, nearly 40% of the total for 2025, with initial payments exceeding $3 billion, also over 40% of 2025. The fundamentals of the innovative drug sector continue to improve.

Some brokerages noted that China’s license-out transaction volume for innovative drugs grew from $2.562 billion in 2017 to $140.274 billion in 2025. By early 2026, the total had reached 22% of 2025, reflecting increased international competitiveness. Over 70% of innovative drug companies achieved positive revenue growth in 2025, indicating the industry is gradually entering a commercialization phase. Currently, the pharmaceutical sector’s valuation and cost-effectiveness are evident, and it is recommended to focus on companies with certain overseas expansion opportunities and clinical data advantages in niche segments.