China Healthcare [Correction] Temporary sentiment uncertainty from US bill to limit clinical data from China

Research evidence excerpt

8 May 2026

Equity Research Report

China Healthcare

Equities

Healthcare

[Correction] Temporary sentiment uncertainty from

US bill to limit clinical data from China

China

◆ US proposes to ban clinical data generated in China for INDs

◆ Votes in the full House and Senate are expected this year;

uncertainty remains over the bill’s content and passage

◆ Prefer WuXi AppTec A/H, Pharmaron A/H, Innovent and BeOne

– all rated Buy – on solid growth momentum and global set-up

Linda Shu*, PhD (Reg. No. S1700522120001)

Head of China Healthcare Research

HSBC Qianhai Securities Limited

Oliver Wang* (Reg. No. S1700523100003)

Analyst, China Healthcare Research

HSBC Qianhai Securities Limited

US bill proposes to limit the FDA from accepting clinical data generated in China

for IND applications: On 30 April, the US House Appropriations Subcommittee on

Agriculture, Rural Development, Food and Drug Administration, and Related Agencies

proposed a bill that prohibits the Food and Drug Administration (FDA) from accepting

clinical data generated from China for Investigational New Drug (IND) applications.

The bill aims to prohibit the FDA from accepting China-only data for IND applications

one year after it takes effect. Importantly, the bill must still pass the full House, the full

Senate and be signed into law by the president (for the potential timeline see Exhibit 1).

Considerable uncertainty exists about the process and amendments of the bill, and we

think investors need to watch future updates to measure the potential impact of the bill.

Cindy Chai* (Reg. No. S1700523040001)

Analyst, China Healthcare Research

HSBC Qianhai Securities Limited

Sentiment dented, but business impact limited at this stage: As the bill mainly

targets “clinical data” for IND applications and may still take one year before taking

effect, we think the bill’s impact on business development (BD) momentum is limited

or may even accelerate BD at this stage. However, we still see a risk that leveraging

Chinese trial data for the US market may slowdown if Chinese trial data is not allowed

for IND applications. In China, innovative drug companies may shift phase 1 trials to

…