Xinjiang Baihuacun Co Ltd

Innovative drug concept stocks continued to strengthen during the session on August 11, with Baihua Medicine securing its sixth consecutive daily limit up and Wanbang Medicine surging by 20 percent. On the news front, seven departments including the Shanghai Municipal Commission of Commerce issued the Shanghai National Service Trade Innovation Development Demonstration Zone Construction Plan, which explicitly supports the innovative development of the biomedical industry and encourages enterprises to pursue global registration and certification for innovative drugs, modern traditional Chinese medicine, and high-end medical devices, and to achieve local sales. Industry data is also impressive: in the first half of this year, the National Medical Products Administration approved 38 innovative drugs for market, of which 31 were domestically developed, accounting for over 80 percent. During the same period, domestic innovative drugs reached 81 licensing deals with overseas pharmaceutical companies, with a total disclosed value of approximately 110 billion US dollars, already reaching 80 percent of the full-year total for 2025. Chinese pharmaceutical companies occupied eight of the top ten spots globally by licensing deal value, and China's number of new drugs under research accounts for about 30 percent of the global total, ranking second worldwide. In addition, several leading innovative drug companies have recently intensively raised their performance guidance. BeiGene achieved total operating revenue of 22.22 billion yuan in the first half of 2026, up 26.8 percent year-on-year, with net profit attributable to the parent company of 3.271 billion yuan, up 627.1 percent. It raised its full-year revenue guidance from a range of 43.6 billion to 45.2 billion yuan to 44.9 billion to 46.2 billion yuan, and its revenue minus operating costs and expenses from a range of 4.8 billion to 5.5 billion yuan to 6.5 billion to 7.1 billion yuan. Brokerage analysis suggests that overseas multinational corporations and contract research organizations have reported positive interim results and raised full-year guidance, confirming that global innovative drug research and development investment and industry chain demand remain in a relatively high boom range. The pharmaceutical sector can absorb the stock of funds flowing out of the technology sector. The half-year reports of upstream contract research organizations for innovative drugs have generally improved, the industry recovery trend is established, the global layout of domestic pharmaceutical companies is beginning to bear fruit, and the overseas cooperation model continues to upgrade.

Innovative drug concept stock Baihua Pharmaceutical achieved its 5th consecutive daily limit, Harbin Pharmaceutical Group hit its 2nd consecutive daily limit, and Bio-Techne surged over 18%. In related news, WuXi AppTec announced that a U.S. court has ruled on its preliminary injunction motion, shielding the company from immediate adverse effects of the 1260H designation during the judicial process challenging that designation. The company had previously filed a lawsuit over the U.S. Department of Defense's decision to place it on the 1260H list.