[Deep Dive] The pharmaceutical sector is in full frenzy: Why is capital only aggressively buying “overseas innovative drugs” this time?
In the past two days, the medical and biotech sector has surged in popularity, but if you look closely at the trading details, you’ll find that this is not a broad-based rise across traditional pharma. Instead, it is an extremely divergent “revaluation of overseas assets.”
Why is money collectively piling into innovative drugs at this juncture? There are three hard-hitting reasons behind it:
1. ESMO clinical data explodes across the board
At the recently concluded 2026 European Society for Medical Oncology (ESMO) annual meeting, Chinese-originated drugs won 29 LBA (Late-Breaking Abstracts), accounting for nearly one-third globally and setting a new historical high. Companies like Biocytogen (bispecific ADC), Akeso, Kelun-Biotech, and others saw their pipelines directly enter the highest-profile presidential symposiums, with data going head-to-head against multinational giants.
2. BD licensing-out has entered a “cash-realization phase”
Innovative drugs have bid farewell to the early “PPT storytelling and cash burning” model. The latest official disclosures show that in the first three quarters, China’s innovative drug external technology licensing (License-out) reached $130 billion, approaching last year’s full-year level. Hansoh Pharmaceutical reached a potential ADC collaboration with Roche worth over $15.5 billion (with the upfront payment alone reaching $400 million). Overseas multinational pharmaceutical companies (MNCs) are aggressively buying China’s cutting-edge pipelines with real money.
3. Performance inflection and low valuation resonate
With the third-quarter earnings season, leading pharmaceutical companies such as BeiGene, Wuxi AppTec, and Huahai Pharmaceutical have continued to raise profitability and guidance, and the self-sustaining commercialization ability of innovative drugs is now fully in place. Amid divergences in high-flying tech stocks, high-quality innovative drug names, which are trading at historically low valuations, have become the most cost-effective offensive direction for institutions.
[Trading perspective summary]
Right now, there are only two kinds of pharma: one is “ADC and bispecific pioneers that can go global and be sold to multinational giants,” and the other is “traditional generic drugs trapped in domestic competition and centralized procurement.” Capital’s choice is very honest.
Do you think this wave in innovative drugs is just a rebound and catch-up rally, or the starting point of a new major bull market cycle? Are you holding overseas innovative drugs, or traditional Chinese medicine/generics? Feel free to chat in the comments.
$BTC $ETH #医药 #创新药 #BinanceSquare
In the past two days, the medical and biotech sector has surged in popularity, but if you look closely at the trading details, you’ll find that this is not a broad-based rise across traditional pharma. Instead, it is an extremely divergent “revaluation of overseas assets.”
Why is money collectively piling into innovative drugs at this juncture? There are three hard-hitting reasons behind it:
1. ESMO clinical data explodes across the board
At the recently concluded 2026 European Society for Medical Oncology (ESMO) annual meeting, Chinese-originated drugs won 29 LBA (Late-Breaking Abstracts), accounting for nearly one-third globally and setting a new historical high. Companies like Biocytogen (bispecific ADC), Akeso, Kelun-Biotech, and others saw their pipelines directly enter the highest-profile presidential symposiums, with data going head-to-head against multinational giants.
2. BD licensing-out has entered a “cash-realization phase”
Innovative drugs have bid farewell to the early “PPT storytelling and cash burning” model. The latest official disclosures show that in the first three quarters, China’s innovative drug external technology licensing (License-out) reached $130 billion, approaching last year’s full-year level. Hansoh Pharmaceutical reached a potential ADC collaboration with Roche worth over $15.5 billion (with the upfront payment alone reaching $400 million). Overseas multinational pharmaceutical companies (MNCs) are aggressively buying China’s cutting-edge pipelines with real money.
3. Performance inflection and low valuation resonate
With the third-quarter earnings season, leading pharmaceutical companies such as BeiGene, Wuxi AppTec, and Huahai Pharmaceutical have continued to raise profitability and guidance, and the self-sustaining commercialization ability of innovative drugs is now fully in place. Amid divergences in high-flying tech stocks, high-quality innovative drug names, which are trading at historically low valuations, have become the most cost-effective offensive direction for institutions.
[Trading perspective summary]
Right now, there are only two kinds of pharma: one is “ADC and bispecific pioneers that can go global and be sold to multinational giants,” and the other is “traditional generic drugs trapped in domestic competition and centralized procurement.” Capital’s choice is very honest.
Do you think this wave in innovative drugs is just a rebound and catch-up rally, or the starting point of a new major bull market cycle? Are you holding overseas innovative drugs, or traditional Chinese medicine/generics? Feel free to chat in the comments.
$BTC $ETH #医药 #创新药 #BinanceSquare