On April 1st, the innovative drug sector experienced a strong rebound, with multiple stocks hitting the daily limit. By the close, JinYao Pharmaceutical achieved a four-day limit increase, Kailaiying saw a two-day limit increase, and Ruizhi Pharmaceutical, Eddie Pharmaceutical, and GuangShengTang all hit a &#34;20CM&#34; limit increase. Huiyu Pharmaceutical rose by 17.90%, while Yifang Bio and Chengda Pharmaceutical both increased by over 15%. In the Hong Kong stock market, the Hang Seng Biotechnology Index rose nearly 7%, with Rongchang Bio, Junshi Bio, and Sanofi Pharmaceutical seeing gains of over 10%.
Multiple Positive Factors Concentrated Release
From the news perspective, the upcoming global top academic conference has heightened market expectations for significant data. The 2026 American Association for Cancer Research (AACR) Annual Meeting will be held from April 17 to 22 in San Diego, USA. As one of the largest and most influential academic events in the field of oncology globally, the AACR meeting has always been an important barometer for the innovative drug industry. According to incomplete statistics, more than 100 Chinese pharmaceutical companies will present at the AACR this year, bringing nearly 400 research results covering cutting-edge technology fields such as ADC, bispecific antibodies, nuclear medicine, cell therapy, and mRNA. Chinese companies have achieved stable output in multiple mainstream tracks, with a significant increase in project density and technical coverage, leading to strong market expectations for the release of significant data.
In addition, the &#34;going global&#34; transactions continue to surge, accelerating the realization of the global value of Chinese innovative drugs. Data from the National Medical Products Administration shows that in the first three months of 2026, the total value of outbound licensing (BD) transactions for Chinese innovative drugs has exceeded $60 billion, approaching half of the total of $135.7 billion for the entire year of 2025. From a global perspective, the proportion of domestic innovative drug BD projects and disclosed amounts from the beginning of the year to now accounts for 20% and 75%, respectively. Among the 21 significant transactions that have been completed, 15 are Chinese transactions, accounting for over 70%.
It is noteworthy that the average upfront payment for Chinese innovative drugs' outbound BD in the first quarter of 2026 reached $184 million, with an average total amount exceeding $2.7 billion, both setting historical records. Galaxy Securities pointed out that as transaction enthusiasm continues to rise, the cooperation model for Chinese innovative drugs going global is shifting from single product licensing to platform-level strategic cooperation, which will drive the reconstruction of the valuation system.
At the same time, policy dividends continue to be released, and the payment environment is constantly improving. The 2026 government work report for the first time listed biomedicine as an emerging pillar industry, further enhancing the strategic positioning of the industry; the first version of the commercial insurance innovative drug catalog has officially landed, accelerating the establishment of a multi-layered payment system of &#34;new medical insurance + commercial insurance,&#34; continuously optimizing the payment environment for innovative drugs.
Industry Entering Profit Realization Period
From the performance perspective, this round of innovative drug market has solid fundamental support. Performance reports from several leading pharmaceutical companies for 2025 show that the innovative drug industry has entered a profit inflection point and commercialization realization stage. Among them, BeiGene achieved its first annual profit in 2025, with a net profit attributable to the parent company reaching 1.422 billion yuan. Innovent Biologics' total revenue in 2025 exceeded 10 billion yuan, achieving profitability for the entire year. Microchip Biotech's net profit attributable to the parent company reached 53.46 million yuan in 2025, successfully turning a profit, with sales revenue of its core product, sodium glimepiride, increasing by 123% year-on-year.
Looking back at the market performance of innovative drugs since 2025, from April to September 2025, innovative drugs were driven by significant BD, significantly outperforming the CSI 300 Index, while from September 2025 to March 2026, the innovative drug index significantly underperformed the market
During this period, the trend of Chinese innovative drugs going overseas remains strong, and more significant business development (BD) deals continue to be executed.
&#34;The pre-positioning of BD expectations and the event-driven trading model have led to a dulling of transactions in the innovative drug sector. After six months of adjustment, expectations for innovative drugs have reasonably returned, and the market is more focused on the quality of clinical data and long-term market value. The recently released clinical data is also validating the potential of Chinese innovative drugs,&#34; said Hu Boxin, an industry analyst at Huaxin Securities.
Founder Securities believes that the pharmaceutical and biotechnology industry is currently in the stage of initiating the profit cycle for innovative drugs, with leading companies having turned losses into profits and significantly improved fundamentals. The correction in innovative drugs has lasted over six months, with limited downside potential, making them highly defensive. Unlike the period during the interest rate hike cycle in 2022, innovative drugs have now entered a profit cycle, possessing self-sustaining capabilities, and their valuations are significantly less affected by changes in interest rate cut expectations.
Reporter Liu Yang

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On April 1st, the innovative drug sector rebounded strongly, with multiple stocks hitting the daily limit. The global top academic conference AACR annual meeting is about to be held, and market expectations for significant data are rising. Chinese pharmaceutical companies will showcase nearly 400 research results at AACR, with the total amount of innovative drug licensing transactions exceeding 60 billion USD, and the trading enthusiasm continues to climb, driving the reconstruction of the valuation system. Policy dividends and optimized payment environments have positioned biomedicine as an emerging pillar industry, enhancing its strategic industry positioning

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Intensive industry catalytic events mark the initiation phase of the profitability cycle for innovative drugs