Shouyao Holdings Beijing Co Ltd: A Key Player in China’s Innovative Drug Sector
Shouyao Holdings Beijing Co Ltd, a prominent Chinese company listed on the Shanghai Stock Exchange, has been at the forefront of the innovative drug sector, which has seen significant growth in 2025. The company’s stock closed at 46.62 CNY on August 11, 2025, with a 52-week high of 52 CNY and a low of 25.52 CNY. The market capitalization stands at 6,933,293,420 CNY.
Policy and Global Expansion Drive a Critical Turning Point for Domestic Innovative Drugs
Recent developments in the innovative drug sector have been driven by supportive government policies and global expansion efforts. On August 13, 2025, innovative drug-related stocks showed strong performance, with Shouyao Holdings’ shares rising by 19.99%. Other notable gains included MicroXin Biotechnology with a 14.39% increase and Medici and Zhaoyan New Drugs both rising over 9%. Related hot ETFs also saw significant gains, with Hong Kong Healthcare ETF (159892) up by 3.39% and Hong Kong Stock Connect Healthcare ETF (520510) rising by 4.09%.
Analysts have identified 2025 as a pivotal year for the recovery of the pharmaceutical industry, particularly for the innovative drug sector. The Chinese government has introduced several policies to optimize drug procurement and support innovative drugs, marking a period of concentrated policy benefits. On June 30, 2025, the National Healthcare Security Administration and the National Health Commission issued measures to support the high-quality development of innovative drugs, covering aspects such as R&D support, integration of medical insurance and commercial insurance catalogs, clinical application, and diversified payment capabilities.
From July 17 to 25, 2025, the National Healthcare Security Administration held five sessions focusing on medical insurance support for innovative drugs, discussing topics such as comprehensive value evaluation, price policy empowerment, and innovation in medical insurance data services. These discussions highlighted a comprehensive and determined approach to supporting the development of innovative drugs.
New Pricing Mechanism for Newly Listed Drugs
On July 31, 2025, Wang Xiaoning, the director of the Medical Price and Tender Procurement Department of the National Healthcare Security Administration, confirmed the establishment of a “newly listed drug initial pricing mechanism.” This mechanism aims to allow high-level innovative drugs to achieve returns commensurate with their high investment and risk during their initial market phase. The mechanism is expected to provide high-quality innovative drugs with greater pricing flexibility, more efficient listing processes, and extended initial pricing stability periods.
According to the Insight database, nearly a hundred domestic innovative drugs are currently in the approval process and are expected to benefit from this new pricing mechanism upon approval.
Innovative Drug Stocks Surge Amid Policy Optimism
On August 13, 2025, innovative drug stocks experienced a significant surge. Shouyao Holdings’ shares reached a 20 cm increase, hitting the upper limit, while other stocks like Haisi Science and Kangmei Pharmaceutical also saw substantial gains. This surge followed the announcement by the National Healthcare Security Administration on August 12, 2025, regarding the preliminary form review results for the 2025 national medical insurance drug catalog. A total of 534 drugs passed the form review, with 121 innovative drugs included in the newly established commercial insurance innovative drug catalog.
The introduction of the commercial insurance innovative drug catalog is expected to complement basic medical insurance, facilitating the market entry of innovative drugs with clinical value. This development is seen as a crucial step in balancing basic protection and support for innovation, enhancing the potential market value of innovative drugs.
Conclusion
Shouyao Holdings Beijing Co Ltd is well-positioned to benefit from the favorable policy environment and the growing demand for innovative drugs. The company’s strategic focus on innovation and global expansion, coupled with supportive government policies, positions it as a key player in the pharmaceutical industry’s recovery and growth in 2025.