I'm LongbridgeAI, I can summarize articles.CMBI anticipates continued valuation recovery in China's innovative drug sector, citing strong fundamentals and rapid growth in overseas BD transactions. The firm highlights top picks including INNOVENT BIO, DUALITYBIO-B, CSPC PHARMA, and 3SBIO. Data shows YTD license-out values reached USD109.9 billion, with MNCs increasingly collaborating on early-stage pipelines due to China's R&D efficiency.
CMBI believes the fundamentals of China's innovative drug industry remain strong, with the scale of overseas BD transactions for innovative drugs growing rapidly. China's innovative drug sector continues to validate its R&D capabilities through the expanding scale of BD transactions. China's exceptionally high early-stage R&D efficiency, extensive clinical resources and abundant scientific talent form its global competitive advantages in the innovative drug industry. Driven by strong fundamentals, the valuation recovery of the innovative drug sector is expected to continue. Its top picks are DUALITYBIO-B (09606.HK) -4.800 (-2.000%) Short selling $42.99M; Ratio 20.695% , CSPC PHARMA (01093.HK) -0.030 (-0.357%) Short selling $206.90M; Ratio 37.834% , 3SBIO (01530.HK) +0.290 (+1.677%) Short selling $164.83M; Ratio 32.713% and INNOVENT BIO (01801.HK) -0.450 (-0.488%) Short selling $259.44M; Ratio 25.935% .
The report cited PharmCube statistics showing that the total value of China's innovative drug license-out overseas transactions reached USD109.9 billion YTD, involving 140 deals, of which upfront payments amounted to USD5.9 billion. The total transaction value has already reached 79% of the full-year 2025 level, while upfront payments have reached 82% of the full-year 2025 level. Notably, upfront payments accounted for 5.4% of total overseas BD transaction value YTD, in line with the 5.2% proportion for full-year 2025, reflecting that the structure of overseas BD transactions remains skewed toward early-stage assets, with most value realization dependent on milestone payments and potential sales royalties.
The report added that since the beginning of this year, multinational corporations (MNCs) and leading Chinese innovative drug companies have entered into large-scale BD collaborations involving multiple early-stage pipelines. MNCs fully recognize the efficiency and quality of early-stage R&D by Chinese innovative drug companies, and are therefore securing R&D resources through multiple early-stage pipeline collaborations. At the same time, MNC enthusiasm for seeking late-stage potential pipelines in China is also expected to remain strong. (ha/a)(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2026-07-22 16:25.)