---
title: "Research report on Hong Kong stocks in the pharmaceutical, biotech, and medical device sectors"
description: "1. Industry Overview Sector Structure: Chemical Pharmaceuticals and Generic Drugs (Typical: $CSPC PHARMA(01093.HK), $SINO BIOPHARM(01177.HK), etc.) Traditional Chinese Medicine ($BAIYUNSHAN PH(00874.H"
type: "topic"
locale: "en"
url: "https://longbridge.com/en/topics/26331264.md"
published_at: "2024-12-29T07:02:25.000Z"
author: "[Freemason](https://longbridge.com/en/profiles/14860395)"
---

# Research report on Hong Kong stocks in the pharmaceutical, biotech, and medical device sectors

## **1\. Industry Overview**

**Sector Structure**:

-   **Chemical Pharmaceuticals & Generics** (e.g., $CSPC PHARMA(01093.HK), $SINO BIOPHARM(01177.HK))
-   **Traditional Chinese Medicine** ($BAIYUNSHAN PH(00874.HK), $TRAD CHI MED(00570.HK), $TONG REN TANG(01666.HK))
-   **Biotech (Chapter 18A Companies)** ($INNOVENT BIO(01801.HK), $CANSINOBIO(06185.HK), $HBM HOLDINGS-B(02142.HK), $JUNSHI BIO(01877.HK), $AKESO(09926.HK))
-   **Medical Devices & High-Value Consumables** ($MICROPORT(00853.HK), $WEIGAO GROUP(01066.HK), $CHUNLI MEDICAL(01858.HK))

**Key Trends**:

-   Biotech IPOs (especially HKEX Chapter 18A firms) saw inflated valuations during 2018-2021;
-   Subsequent global liquidity tightening and centralized procurement policies triggered 70-90% corrections from peaks;
-   Current valuations are relatively low, with weak risk appetite. **Pipeline differentiation** and **commercialization capabilities** are now critical investment metrics.

* * *

## 2\. SWOT Analysis

### 1\. Strengths

**Strong Market Demand**

-   Aging populations, rising chronic diseases, and health awareness drive long-term demand.
-   Innovative drugs (e.g., immuno-oncology, gene/cell therapy) and high-end devices thrive amid healthcare upgrades.

**Policy-Driven Innovation**

-   HKEX Chapter 18A enables pre-revenue biotech listings, funding R&D;
-   Regulatory reforms accelerate approvals for "hardcore" innovations.

**Localization & Supply Chain Edge** (Devices)

-   Domestic consumables/imaging equipment outperform multinationals in cost and service;
-   Volume-based procurement (VBP) forces hospitals to adopt local brands.

**Talent Influx & Platform Breakthroughs**

-   Returnee scientists and ex-MNC teams advance bispecific antibodies, T-cell engagers, mRNA platforms.

### 2\. Weaknesses

**Core Tech Dependencies**

-   Reliance on imported components (e.g., imaging probes) and upstream IP.

**Commercialization Gaps**

-   Weak sales networks and overseas compliance experience vs. global peers.

**Pipeline Homogeneity**

-   Overcrowded targets (PD-1, CAR-T) trigger price wars;
-   Low-margin device makers struggle under VBP.

**Financial Fragility**

-   Pre-profit 18A firms rely on volatile equity financing.

### 3\. Opportunities

**Import Substitution & VBP Expansion**

-   Cardiac stents, orthopedic joints already under VBP; more device categories may follow.

**Differentiated Pipelines**

-   First-in-class/best-in-class candidates (e.g., bispecifics) attract premium valuations.

**Global Partnerships**

-   Rising cross-border licensing deals (e.g., Harbour BioMed's $320M T-cell engager pact).

**AI & Digital Health**

-   Surgical robots, AI drug discovery open new revenue streams.

### 4\. Threats

**VBP & Price Controls**

-   Steep price cuts compress margins; innovative drugs may face stricter negotiations.

**Geopolitical Risks**

-   Trade tensions and supply chain disruptions raise costs.

**Clinical/Regulatory Setbacks**

-   Failed trials or stricter FDA/NMPA reviews trigger volatility.

**Industry Shakeout**

-   Cash-strapped "pseudo-innovators" face consolidation.

* * *

## 3\. Four Key Dimensions

### 1\. Fundamentals

**Financials**:

-   Traditional pharma leaders (CSPC, Sino Biopharm) balance generics with novel drugs.
-   Device giants (MicroPort, Weigao) dominate niches like cardiovascular and orthopedics.
-   Biotech bifurcation: near-commercialization vs. cash-burning R&D.

**Pipeline Quality**:

-   Multimodal platforms (bispecifics, ADCs) outshine me-too PD-1s.

### 2\. Policy

-   VBP rounds 10-11 expand to high-value consumables;
-   NRDL inclusion accelerates sales but requires steep discounts;
-   18A funding tightens amid muted secondary markets.

### 3\. Catalysts

**Clinical Milestones**

-   $AKESO(09926.HK)'s PD-1/VEGF bispecific ivonescimab beat Merck's Keytruda in PFS—a first for Chinese PD-1s.

**Deals**

-   $HBM HOLDINGS-B(02142.HK)'s $320M T-cell engager deal with Candid.

### 4\. Technicals

-   Sector remains range-bound; selective rebounds on positive data.
-   Institutions favor firms with cash buffers and validated pipelines.

* * *

## 4\. Pipeline Spotlights

### 1.$HBM HOLDINGS-B(02142.HK)

-   **Highlights**: T-cell engager deal validates platform.
-   **Risks**: Pre-revenue status demands careful cash monitoring.

### 2\. $AKESO(09926.HK)

-   **Highlights**: PD-1/VEGF bispecific's superiority over Keytruda.
-   **Risks**: Commercial execution and global expansion hurdles.

### 3\. $MICROPORT(00853.HK)

-   **Edge**: Diversified device portfolio offsets VBP pressures.

### 4\. $INNOVENT BIO(01801.HK)

-   **Catalysts**: PD-1/LAG-3 bispecific and overseas partnerships.

* * *

## 5\. Investment Strategy

**Focus on Differentiated Pipelines**

-   Avoid homogeneous PD-1/device players;
-   Prioritize platforms with global potential (bispecifics, ADCs).

**Balance Import Substitution & Policy Risks**

-   Scale and tech upgrades key to surviving VBP.

**Monitor Funding & Clinical Risks**

-   Track 18A firms' cash runways and trial readouts.

**Event-Driven Opportunities**

-   Data releases, licensing deals may spark rallies.

* * *

## 6\. Bottom Line

**Long-Term Drivers Intact**: Aging demographics, innovation policies, localization.

**Selectivity Crucial**: Post-correction, winners will separate via science and execution.

**Global Ambitions**: Breakthroughs like Akeso's bispecific prove China's biotech rise.

> **Disclosure**: This is research, not investment advice.

### Related Stocks

- [01666.HK - TONG REN TANG](https://longbridge.com/en/quote/01666.HK.md)
- [01177.HK - SINO BIOPHARM](https://longbridge.com/en/quote/01177.HK.md)
- [600332.CN - GYBYS](https://longbridge.com/en/quote/600332.CN.md)
- [00874.HK - BAIYUNSHAN PH](https://longbridge.com/en/quote/00874.HK.md)
- [00570.HK - TRAD CHI MED](https://longbridge.com/en/quote/00570.HK.md)
- [688180.CN - Junshi Biosciences](https://longbridge.com/en/quote/688180.CN.md)
- [01877.HK - JUNSHI BIO](https://longbridge.com/en/quote/01877.HK.md)
- [01093.HK - CSPC PHARMA](https://longbridge.com/en/quote/01093.HK.md)
- [01801.HK - INNOVENT BIO](https://longbridge.com/en/quote/01801.HK.md)
- [06185.HK - CANSINOBIO](https://longbridge.com/en/quote/06185.HK.md)

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> **Disclaimer**: This article is for reference only and does not constitute any investment advice.