Surged 7-fold in 3 Years! After High-Fly Capital’s Share Reduction, a Pharmaceutical Giant with a Market Cap of Over ¥100 Billion Files for IPO in Hong Kong

CXO has been the most prosperous subsector in the pharmaceutical industry over the past few years. As ‘water sellers’ to drug developers, CXO firms derive their revenue primarily from R&D expenditures by domestic and international pharmaceutical giants. When pharma companies increase R&D spending, CXO firms’ performance improves accordingly. After 2020, overall performance of domestic pharmaceutical enterprises was lackluster: Hengrui Medicine (600276.SH), dubbed the ‘Pharma MVP,’ saw its share price plummet from ¥100 to ¥50—a 50% drop—that left investors deeply frustrated. Yet, several CXO firms—including WuXi AppTec (603259.SH), Ascentage Pharma (002821.SZ), and Tigermed (300347.SZ)—repeatedly hit new all-time highs during the same period. In terms of market capitalization, WuXi AppTec—the current CXO leader—now trails Hengrui Medicine by merely ¥2 billion: Hengrui’s market cap stands at ¥332.8 billion, while WuXi’s is ¥330.2 billion. It may seem surprising that ‘water sellers’ profiting from pharmaceutical R&D expenditures have nearly matched the market value of the pharmaceutical companies themselves—but it isn’t. That’s because these domestic CXO firms earn most of their revenue from international pharmaceutical giants—especially those in Europe and the U.S. Accordingly, over the past three to four years—while China’s CXO sector experienced rapid growth—many domestic CXO firms have actively pursued dual A+H share listings. Last Friday, Ascentage Pharma received approval for a listing hearing from the Hong Kong Exchanges and Clearing (HKEX), bringing it just one step away from its Hong Kong listing! Securing a Major Pfizer Contract, Shares Soar On the evening of November 16, Ascentage Pharma—a CDMO leader with a market cap exceeding ¥100 billion—announced that its wholly owned subsidiaries Asymchem, Inc. and Jilin Ascentage Pharmaceutical Chemical Co., Ltd. had signed a new supply agreement with a major U.S.-based pharmaceutical company for a specific product. As of the contract signing date, the cumulative contract value for CDMO services related to this product reached USD 480 million. (Screenshot of Ascentage Pharma’s material contract announcement) Due to confidentiality requirements, Ascentage did not disclose the identity of the U.S. pharmaceutical company in its announcement. However, it revealed that revenue from this client accounted for 10.07%, 10.11%, and 20.25% of total revenue in 2018, 2019, and 2020 respectively. Based on these figures, this client is clearly Ascentage’s largest customer. In its 2023 semi-annual report, Ascentage stated that it has built strong collaborative relationships with global pharmaceutical leaders—including Pfizer, Merck & Co., AbbVie, Eli Lilly, Bristol Myers Squibb, and AstraZeneca—and continues to deepen penetration across their global development pipelines. Simultaneously, the company has expanded coverage of high-growth clients, establishing multidimensional cooperative partnerships with emerging biopharmaceutical firms both domestically and internationally—including Zai Lab, Betta Pharmaceuticals, Hutchison Whampoa, Innovent Biologics, Accutar Biotech, Mersana Therapeutics, and Mirati Therapeutics. Its prospectus shows that its top five customers in the first half of 2016 were Merck & Co., Bristol Myers Squibb, Pfizer, Roche, and AbbVie—yet even this information fails to conclusively identify the client behind the latest contract. Coincidentally, on the same day, U.S.-based Pfizer submitted an Emergency Use Authorization (EUA) application to the FDA for its oral antiviral drug Paxlovid, based on interim analysis data from the Phase II/III EPIC-HR clinical trial. Consequently, market speculation strongly points to Pfizer as the unnamed major client.

2025 Pharmaceutical Stock Price Rankings: Gainers and Losers

Among them, ShuTaiShen—headquartered in Beijing—topped the list with a staggering 2.69-fold surge. Its core investigational product, STSP-0601 (Bomitanase Alfa) for hemophilia treatment, was granted Priority Review status in China and Orphan Drug Designation by the U.S. FDA; Phase IIb clinical data demonstrated significantly superior efficacy compared to conventional therapies. Second was Duorui Pharmaceutical—registered in Changdu, Tibet—with a 2.32-fold gain, driven by robust revenue growth from its albuvirtide active pharmaceutical ingredient (API) business and increased R&D investment, as well as its strategic acquisition of Xinchengda and Sichuan Duorui to pivot into the high-end peptide API sector. Third was Changshan Pharmaceutical—based in Zhengding, Hebei—whose share price rose over 2-fold (+2.11×), propelled primarily by progress in developing its innovative core drug, Ebenatide injection, for type 2 diabetes and obesity. Three other firms posted gains between 1.5× and 2×: Guangshengtang (+1.73×), Anglikang (+1.56×), and Haichen Pharmaceutical (+1.5×). 03 Traditional Chinese Medicine (TCM) Turning to the TCM sector, pharmaceutical enterprises based in Zhejiang Province dominated the top three spots. The biggest gainer was Wanbangde—located in Taizhou, Zhejiang—with a 1.17-fold rise, fueled by substantive progress in multiple investigational innovative drugs (Western medicines), a substantial increase in government subsidies, and the entry of state-owned capital. Second was Tianmu Pharmaceutical—registered in Hangzhou—which rose 97%, benefiting from returning to profitability, removal of its ST designation, and the entry of Qingdao state-owned capital (Laoshan District Finance Bureau). Third was Weikang Pharmaceutical—based in Lishui, Zhejiang—with a 71% gain, following completion of the clinical trial summary report for its Class 1.1 Huangjia Ruangan Granules and its planned submission for conditional marketing approval, as well as advancement of products such as Shandan Tongnao Dropping Pills into Phase II clinical trials. Zhiseng Pharmaceutical, Guhan Pharmaceutical, and Daren Tang posted similar gains—between 50% and 60%—rising 59%, 58%, and 54%, respectively. Four additional firms posted gains ranging from 20% to 50%: Kanghui Holdings (+43%), Wohua Pharmaceutical (+33%), Tailong Pharmaceutical (+29%), and TeYi Pharmaceutical (+22%). 04 Biological Products Four firms in the biological products sector doubled their share prices; the minimum gain required to rank among the Top 10 exceeded 50%. The top performer was SanSheng GuoJian—based in the Shanghai Free Trade Zone—with a 1.79-fold surge. This followed its global licensing agreement with Pfizer for SSgJ-707, a PD-1/VEGF bispecific antibody, with a total transaction value exceeding USD 6 billion—the highest upfront payment ever recorded for a Chinese innovative drug licensed abroad. Second was Rongchang Biotechnology—headquartered in Yantai, Shandong—with a 1.58-fold gain, driven by regulatory approvals for its flagship products Telitacicept and Disitamab Vedotin across multiple indications, inclusion in China’s National Reimbursement Drug List (NRDL), and FDA Fast Track and Orphan Drug Designations—as well as Orphan Medicinal Product designation from the European Medicines Agency (EMA)—all of which significantly elevated market expectations. Third was Oulin Biopharma—based in Chengdu, Sichuan—with a 1.39-fold gain, primarily attributable to strong financial performance. Fourth was Aidi Pharmaceutical—located in Yangzhou, Jiangsu—with a 1.08-fold gain, boosted by markedly increased sales of its novel anti-HIV drug Enomitrine Tablets (FuBangDe) following its inclusion in the NRDL. Bioprocess Systems (+73%), Kangchen Pharmaceutical (+72%), and Wanzhe Shares (+71%) posted closely aligned gains. Jindike and BeiGene-U both rose 67%; Ganli Pharmaceutical—a leading insulin enterprise—rose 57%.

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West Pharmaceutical Services Inc. Stock Outperforms Competitors on Strong Trading Day

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