Rumors abound, and the pharmaceutical sector was bloodwashed this week. The pharmaceutical index fell 4.86% this week and fell to a three-year low of 11489 on Friday, before closing at 11507. Of the 229 pharmaceutical stocks on Friday, only 7 rose, 1 was flat, and 221 stocks fell.
Among the top ten leading enterprises with market value, Jiangsu Hengrui Medicine Co.Ltd(600276) rose slightly by 0.76% this week to close at 41.26 yuan / share, with a total market value of 263.899 billion yuan, Jiangsu Hengrui Medicine Co.Ltd(600276) regained the first position in market value from Wuxi Apptec Co.Ltd(603259) with a market value advantage of 20 billion yuan.
This week, the index of traditional Chinese medicine rose slightly by 0.08% to close at 9652.59. Among the leading enterprises of traditional Chinese medicine, Zhangzhou Pientzehuang Pharmaceutical Co.Ltd(600436) fell by 4.82%, with a total market value of 205.146 billion yuan, Yunnan Baiyao Group Co.Ltd(000538) and Beijing Tongrentang Co.Ltd(600085) increased by 3.12% and 2.53% respectively, with a total market value of 119.413 billion yuan and 58.932 billion yuan respectively.
The biggest decline in the pharmaceutical industry this week was the cro sector, which fell 9.60% this week to close at 3113.64.
On February 8, affected by the U.S. Department of Commerce, namely Wuxi Yaoming Biotechnology Co., Ltd. and Shanghai Yaoming Biotechnology Co., Ltd., which were included in the unverified list, the stock price of YaoMing system plummeted, and then spread to the whole cro sector.
On the same day, Wuxi Apptec Co.Ltd(603259) (SH: 603259) fell by the limit, Wuxi Apptec Co.Ltd(603259) (HK: 02359) fell by 11.36%, Yaoming biological (HK: 02269) fell by 22.77%, and Yaoming juno-b (HK: 02126) fell by 4.01%.
According to the emergency response of Wuxi Apptec Co.Ltd(603259) , the two subsidiaries of YaoMing biological are included in the unverified list. Yaoming biological is an independent listed company and Wuxi Apptec Co.Ltd(603259) does not hold any shares of YaoMing biological. Yaoming biology also urgently clarified that the unverified list is different from the entity list. Inclusion in the unverified list does not mean that U.S. exporters cannot interact with the people on the list, nor does it mean that there are specific, valuable and explicable national security or foreign policy issues with the people concerned. Yao Mingsheng said that at present, the company is actively taking temporary measures to remove these subsidiaries from the unverified list.
Another market rumor has worsened the already depressed cro sector.
On February 10, it was rumored that a large institution had recently redeemed nearly 40 billion fund shares of Ge Lan, a star fund manager of China Europe, and Wuxi Apptec Co.Ltd(603259) was Ge Lan’s heavy stock. According to wind data, as of December 31, 2021, the four funds managed by Glenn held Wuxi Apptec Co.Ltd(603259) 81.31 million shares in total. Although China Europe Fund publicly clarified that the online transmission of “large redemption” was untrue, the cro sector was already jittery, and the cro index fell 4.1% and 3.61% respectively in the second two days of this week.
From the perspective of individual stocks, this week Wuxi Apptec Co.Ltd(603259) fell 20.73% to close at 83.07 yuan / share, with a total market value of 245.534 billion yuan. The market value shrank by 64 billion yuan a week. The market value ranked behind Jiangsu Hengrui Medicine Co.Ltd(600276) , ranking second in the market value of the pharmaceutical industry. Asymchem Laboratories (Tianjin) Co.Ltd(002821) fell 19.47% to close at 262.12 yuan / share. The total market value fell below the 70 billion mark, ranking first and ninth; The third decline was Hangzhou Tigermed Consulting Co.Ltd(300347) , with a weekly decline of 14.21% to close at 88.60 yuan / share. The total market value fell below 80 billion, ranking eighth in market value; Pharmaron Beijing Co.Ltd(300759) fell 10.78% to close at 105.49 yuan / share, with a total market value of 83.778 billion yuan. In the cro sector, the first decline in the week was Porton Pharma Solutions Ltd(300363) , with a decline of 21.17% this week to close at 61.32 yuan / share.
The bad news this week is that the FDA will approve “face change” based on single country clinical trial data. On February 10, FDA held an ODAC meeting to review the PD-1 antibody cindilimab of Cinda biology and Lilly pharmaceutical. The final vote was 14:1. It was considered that cindilimab should be supplemented with clinical trials before it can be approved. This means that the sea logic of domestic PD-1 and even domestic innovative drugs will change dramatically. The innovative drug index fell 2.38% this week, reaching an all-time low of 1586.56.
