Hang Seng Biotech Index jumps 3% as Innovent rallies 12%

Hong Kong biotech shares climbed Tuesday as Innovent Biologics' strong first-half results and 2030 global expansion plan lifted the sector.

The Hang Seng Biotech Index rose more than 3 percent Tuesday as Innovent Biologics (信達生物, 01801.HK) surged 12 percent after posting strong first-half results.

"2026 marks Innovent's best strategic window to date," Michael Yu, founder, chairman and chief executive officer of Innovent, said in the company's interim results statement.

Innovent's total revenue reached RMB 8.6 billion in the first half, up 45 percent year over year, while product revenue rose 57 percent to RMB 8.2 billion. Non-IFRS net profit climbed 41 percent to RMB 1.7 billion. Akeso (康方生物, 09926.HK) advanced 8 percent.

The rally reflects growing confidence in China's biotech sector, with Innovent targeting RMB 35-40 billion in annual revenue by 2030 and at least five molecules in global Phase 3 trials. The company has signed partnerships worth US$34 billion with Takeda, Eli Lilly and Pfizer over the past ten months.

Innovent's gains came a day after the company laid out its "Vision 2030" strategy, aiming to transform from a regional leader into a global biopharmaceutical company. The firm holds RMB 30.2 billion in cash, equivalent to about US$4.5 billion, and generated positive cash flow in the first half, providing a foundation for the expansion.

The company's dual-engine strategy spans oncology and general biomedicine. In oncology, Innovent is advancing next-generation assets including IBI363 (PD-1/IL-2α-biased), IBI343 (CLDN18.2 ADC) and IBI3003 (GPRC5D/BCMA/CD3) into late-stage development. In general biomedicine, approved products include SYCUME (teprotumumab), China's first therapy for thyroid eye disease in 70 years; mazdutide, the world's first approved GCG/GLP-1 dual-receptor agonist for obesity; and SINTBILO (tafolecimab), the first China-developed PCSK9 inhibitor in the national drug list. PECONDLE (picankibart), an IL-23p19 antibody for autoimmune disease, was approved at the end of 2025.

Three late-stage global assets — IBI363, arcotatug tavetecan and IBI343 — target a combined addressable market estimated at more than US$60 billion. Innovent has launched 20 products and has one asset in NMPA review, five in Phase 3 or late-stage clinical trials and 14 more in early clinical stages. Its partnered pipeline spans more than 20 programs, including five co-development and co-commercialization deals.

The broader biotech rally also lifted Akeso, which rose 8 percent, as investors rotated into Hong Kong-listed drug developers. The sector's advance came as Innovent's Suzhou manufacturing site passed a European Medicines Agency GMP inspection, supporting its global supply ambitions. Innovent operates 140,000 liters of manufacturing capacity, about 20 percent of China's total biologic capacity.

For investors, the move shows China's biotech sector is entering a phase of profitability and global expansion, with Innovent's results showing scale and earnings quality advancing together. The next test comes as the company's Phase 2 study of IBI363 in melanoma reads out in the second half of 2026, potentially supporting its first NDA submission.

This article is for informational purposes only and does not constitute investment advice.