Since reaching a peak of HKD 19.90 during intraday trading on August 8 of this year, the stock price of BOAN BIOTECH (06955) has entered a new round of decline, dropping to a low of HKD 11.22 on October 14, before showing signs of stabilization in the last two trading days, with a cumulative drop of over 30% in the price range.
According to data from Zhitong Finance APP, due to the continuous decline in stock price, the average daily market value of BOAN BIOTECH during the Hong Kong Stock Connect review period has fallen to HKD 6.651 billion, getting closer to the current threshold for removal from the Hong Kong Stock Connect of HKD 5.745 billion, thus increasing the pressure to &#34;maintain connectivity.&#34;
The reason for this round of decline in BOAN BIOTECH's stock price is related to the centralized procurement of biosimilar drugs. As a commercial pharmaceutical company that has achieved profits for three consecutive reporting periods, whether BOAN BIOTECH can stabilize its valuation and position in the Hong Kong Stock Connect under the backdrop of centralized procurement may directly affect the subsequent allocation direction of secondary market investors.
<h2>Can it break free from the downward channel?</h2>
Although the average daily market value of BOAN BIOTECH is currently getting closer to the exit threshold during the review period, the company's actual market value is still above HKD 7 billion. Even if calculated based on the exit threshold of HKD 5.745 billion, the corresponding stock price would still be below HKD 10. Therefore, BOAN BIOTECH only needs to stabilize its stock price and break free from the downward channel to achieve &#34;maintain connectivity.&#34;
From a technical perspective, since August of this year, BOAN BIOTECH has been in a downward channel characterized by &#34;price decline and volume shrinkage.&#34; After reaching a peak and the upper Bollinger Band on August 8, BOAN BIOTECH's stock price formed a &#34;reversal doji&#34; the next day and began a technical return towards the lower Bollinger Band.
Among them, BOAN BIOTECH's stock price first touched the lower Bollinger Band on August 20 and attempted to pull back to the middle band, but the lack of volume due to the cautious attitude of off-market holders led to a failed surge. On August 27, the company's stock price failed to reach the middle Bollinger Band, which to some extent triggered market divergence the next day, leading some holders to sell off.
However, the main funds did not truly exit. After a drop of 13.99% on August 28, resulting in a large bearish candle, BOAN BIOTECH's daily trading volume began to gradually decline, with several trading days in early September seeing volumes drop below 10 million shares, and on September 10, it fell to a daily trading volume of 5.2172 million shares.
To further clear floating shares, on September 16, BOAN BIOTECH experienced a rally followed by a pullback, resulting in a large bullish candle, closing up over 12%. The sudden surge again widened the divergence in the market, with that day's trading volume reaching 81.3288 million shares, which further increased the concentration of BOAN BIOTECH's shares. After September 17, the daily trading volume of BOAN BIOTECH further decreased, dropping below 5 million shares to 4.7044 million shares on October 14.
<img src="https://imageproxy.pbkrs.com/https://img.zhitongcaijing.com/image/20251017/1760669347260530.png?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" alt="image.png" original-src="https://imageproxy.pbkrs.com/https://img.zhitongcaijing.com/image/20251017/1760669347260530.png"/>
However, on October 13 and 14, the stock price of BOAN BIOTECH once again touched the lower Bollinger Band and returned to the middle band in the following two trading days, with an increase in both price and volume. However, on October 16, the company's highest stock price had not yet reached the middle band of the Bollinger Band, making it difficult to determine whether this is a re-wash by the main funds or a &#34;true rebound&#34; in the company's stock price.
<h2>Is centralized procurement a &#34;delicacy&#34; or &#34;poison&#34;?</h2>
Compared to most unprofitable companies in the Hong Kong stock biomedical sector, the reason BOAN BIOTECH has been able to catch up in the commercialization field is that vigorously developing biosimilars is one of its key strategies.
The &#34;safety&#34; of this strategy lies in the fact that, on the one hand, biosimilars do not require companies to conduct original research and innovation, significantly lowering the research and development risks and difficulties; on the other hand, with the expiration of patents for blockbuster monoclonal antibodies, there is a huge domestic replacement market for domestic biosimilars. BOAN BIOTECH has ensured short-term commercial returns through the commercialization of biosimilars, thus achieving a performance breakthrough. However, when biosimilars encounter centralized procurement, BOAN BIOTECH's commercialization logic inevitably faces challenges.
According to Zhitong Finance APP, on August 1, the Anhui Provincial Pharmaceutical Centralized Procurement Platform issued a notice on the information reporting of certain monoclonal antibody biological preparations, officially launching the centralized procurement of biological drugs. This centralized procurement includes eight varieties: adalimumab, bevacizumab, dexamethasone, rituximab, trastuzumab, tocilizumab, infliximab, and pertuzumab.
In terms of sales performance, in 2023, the sales of bevacizumab approached 10 billion (99.5 billion yuan), followed by trastuzumab with sales of 7.89 billion yuan; rituximab (4.86 billion yuan) and pertuzumab (3.55 billion yuan) also exceeded 3 billion yuan; adalimumab (1.54 billion yuan), dexamethasone (1.18 billion yuan), and infliximab (1.13 billion yuan) fell between 1-2 billion; while tocilizumab had sales of less than 1 billion (500 million yuan).
This covers BOAN BIOTECH's current three commercialized products: Boyounuo® (bevacizumab), Boluoga® (dexamethasone 120mg), and Boyoubei® (dexamethasone 60mg). Since BOAN BIOTECH's fourth product—Boyouping® (dulaglutide)—was only approved for market launch in August this year, the 385 million yuan in product sales revenue achieved by the company in the first half of this year was contributed entirely by the first three products.
Taking one of the company's core products, Boyounuo®, as an example, it faced a relatively severe market competition environment before centralized procurement. On the one hand, the number of approved biosimilars for bevacizumab in China has risen to 11; on the other hand, the market explosion has led to a gradual decline in the medical insurance price of this variety, and the sales ceiling for Boyounuo® has almost been capped by the competitive products with first-mover advantages.
According to Zhitong Finance APP, in May 2021, BOAN BIOTECH granted the exclusive promotion rights of Boyounuo® in 21 provinces and cities in China to AstraZeneca. With the support of the mature sales channels of the big pharmaceutical company, Boyounuo® achieved sales of only 159 million yuan in its first year on the market, with a market share of 1.76%; while competitors Anweiting and Anke Da achieved sales of 3.299 billion yuan and 3.5 billion yuan respectively in the same year, with domestic market shares of 36.66% and 38.89%
However, now that centralized procurement has begun, companies will inevitably have to lower prices and engage in price wars, which is not a good thing for companies like Qilu and Roche that have taken the lead in occupying the market. For companies with lower market share, if they lower prices to seize market share, it may impact the existing market advantages of leading pharmaceutical companies.
According to the latest medical insurance pricing for Bevacizumab from various pharmaceutical companies in 2025, the pricing for Qilu Pharmaceutical's Anke Da and Roche's original drug Avastin, which have the highest market share, are 1126 yuan per vial and 1500 yuan per vial, respectively. In contrast, BOAN BIOTECH's Boyounuo is priced below 1100 yuan, offering a relatively better price-to-volume advantage.
The market sales situation of BOAN BIOTECH's two similar drugs to Dexamethasone is roughly similar to that of Boyounuo®. The original manufacturer of Dexamethasone is Amgen, but Amgen has developed two brands, Prolia and Xgeva, for metabolic and tumor indications, respectively. Boyoupei® is a similar drug to Prolia, while Boluoja® is a similar drug to Xgeva. However, since Maiwei Biotechnology's Maiweijian and Qilu Pharmaceutical's Luda Xin have already been approved for market entry in this field, there is also significant competitive pressure before centralized procurement, and after centralized procurement, there is a possibility of price-to-volume competition impacting higher market share.
In terms of centralized procurement rules, the procurement of biosimilars must also comply with the policy of &#34;anti-involution,&#34; requiring bidding companies to disclose the rationality of their costs and grouping based on generic names + companies in the procurement rules to avoid &#34;only low prices,&#34; thus greatly increasing the probability of moderate price reductions.
In addition, the research report from CMB International pointed out that based on past experiences with centralized procurement of chemical generics, it takes 1-2 months from information submission to formal bidding. However, since this is the first centralized procurement of biosimilars in mainland China, it is expected that information organization and rule formulation may take longer. It is recommended to pay attention to the final inclusion of varieties and the issuance of bidding rules; the actual impact of the bidding results on the performance and product sales of related companies should be reflected starting from 2026

06955

BOAN BIOTECH's stock price has continued to decline from the August high of HKD 19.90, falling to HKD 11.22 on October 14, with a cumulative drop of over 30%. Whether the company can stabilize its valuation and maintain its status in the Hong Kong Stock Connect under the backdrop of centralized procurement will affect investors' allocation direction. Although the average daily market capitalization is close to the Hong Kong Stock Connect removal threshold of HKD 5.745 billion, the actual market capitalization remains above HKD 7 billion. If the stock price stabilizes, it can achieve "preserve connection."

Zhitong

BOAN BIOTECH

The impact of centralized procurement on commercialization logic: Can BOAN BIOTECH's stock price break free from the downward channel after a more than 30% drop in 2 months?