JOINN Laboratories (HKEX: 06127) saw its shares surge more than 7% during the trading session. At the time of writing, the stock was up 6.59% to HK$21.66, with a trading volume of HK$1 billion.

The catalyst for the move appears to be a renewed tightness in the supply of research monkeys, driven by active new drug development. "The issue is not just that monkeys are extremely expensive now; the more critical problem is that they are simply unavailable," said Zhang Ming, a head of R&D at a biopharmaceutical company, who finds himself in a difficult position sourcing the animals.

A researcher from another pharmaceutical firm noted that the price for crab-eating macaques has risen significantly. According to their latest inquiries, the unit price has reached a high of 200,000 yuan. "Scheduling slots for research monkeys at various CROs (Contract Research Organizations) are almost fully booked for this year," the researcher added.

Market Analysis and Outlook

A previous report from West China Securities highlighted that the supply of research monkeys in China faces inherent constraints. The breeding and expansion cycle for these animals is lengthy, taking 6 to 7 years, and the breeding population is aging. Furthermore, following the COVID-19 pandemic, the government has strengthened controls on the import and export of wildlife, further restricting external supply.

Against the backdrop of recovering industry demand, the price of research monkeys is expected to continue rising. This trend is anticipated to provide significant profit flexibility for related companies through changes in the fair value of their biological assets.