HK Stock Market Move | China Pharmaceutical Group (01177) rose over 4% again, and its affiliated company, Lixin Pharmaceutics LM-350, received the IND approval from the US FDA.

China Biopharmaceuticals (01177) rose by over 4% again, with a cumulative increase of over 30% for the month. As of the time of writing, it has risen by 3.43% to 6.94 Hong Kong dollars, with a trading volume of 3.91 billion Hong Kong dollars. On the news front, SINO BIOPHARM announced that its wholly-owned subsidiary, Lixinyiyao, has independently developed the innovative drug LM-350 "CDH17 ADC", which has obtained the FDA's new drug clinical trial (IND) approval. LM-350 is an ADC targeting CDH17 developed based on Lixinyiyao's new generation antibody-drug conjugate (ADC) platform LM-ADCTM. The company stated that besides LM-350, the group has 5 ADC products in clinical stages. It is worth noting that China Biopharmaceuticals announced on July 15 that it would acquire nearly 95.09% of Lixinyiyao's shares for over 500 million US dollars, making Lixinyiyao, with 8 clinical stage candidate drugs, its indirectly wholly-owned subsidiary after the completion of the transaction. China International Bank released a research report stating that considering the potential of Lixinyiyao's assets in the global market, they expect China Biopharmaceuticals to have more visible authorized transactions in the future. The bank also focuses on the development opportunities of China Biopharmaceuticals' self-developed assets, such as PDE3/4 inhibitors, JAK/ROCK inhibitors, and HER2 bispecific ADCs. Taking into account potential business development income, they have slightly adjusted their drug sales forecasts for this year, believing that the double-digit annual growth guidance given by management is achievable.