Weekly Rx Express 2026.07.17

Research evidence excerpt

Weekly Rx Express 2026.07.17

Update

July 17, 2026 03:05 PM GMT

Morgan Stanley Asia Limited+MChina Healthcare | Asia Pacific Laurence Tam

Equity Analyst

Weekly Rx Express 2026.07.17 Laurence.Tam@morganstanley.comAlexis Yan, CFA +852 2239-1753

Alexis.Yan@morganstanley.com +852 2239-7953

Key Takeaways Jack Lin

China healthcare was up 0.3% WoW (HSI +1.6%). Inflation expectations and Jack.Lin@morganstanley.com +852 3963-3746

geopolitical instability have led to broader equity market sell-off toward end of Marco Wong

Research Associate

week. Marco.Wong@morganstanley.com +852 3963-2021

Vanessa Liao

The rare performer this week was TCM (+11.4% WoW), on State Council policy

support for the 15th Five Year Plan. Vanessa.Liao@morganstanley.com +852 3963-0115

Year to date, the sector is down 4.5% (HSI -4.2%), with CDMOs (+24.8%) and

Biotechs (+5.3%) among the better-performing subsectors.

Near-term concerns over restrictions on China BD deals have eased, as the BINSA

bill failed to secure the green light for US House floor debate.

China Healthcare

United Labs received a US$13.5mn milestone from Novo Nordisk for advancing Asia Pacific

UBT251 (a GLP-1/GIP/glucagon triple agonist) into a global Phase 2 obesity trial. Industry View Attractive

See news commentary for the BINSA bill update (link). The CDMO space rallied

early in the week following preliminary earnings from Chinese CRO/CDMOs

Pharmaron (note) and Joinn Labs (note). Lab monkey prices in China have edged up

further, to ~Rmb190k each, indicating that preclinical outsourcing demand remains

strong. Hengrui's second NewCo, BraveHeart, which was granted ex-Greater China

rights of HRS/BHB-1893 (a myosin inhibitor for oHCM and nHCM), has filed for a

NASDAQ listing (note). Kelun's China Phase 3 study (OptiTROP-Lung06) of sac-