Market review: last week, the A-share pharmaceutical and biological index fell 6.83%, underperforming the CSI 300 index by 2.32pp and the gem composite index by 1.65pp, ranking 28th among 28 sub industries, with poor performance, mainly due to the decline of epidemic related tracks and innovative drugs. The Hang Seng health index of Hong Kong stocks closed down 14.95% last week, underperforming the Hang Seng state-owned enterprise index by 8.38pp, ranking 11th among the 11 wind Hong Kong industry sectors.
Tracking the R & D Progress of listed companies: in the last two weeks, the listing application of insulin aspart injection of Sihuan pharmaceutical was newly undertaken, the clinical application of Shanghai Fosun Pharmaceutical (Group) Co.Ltd(600196) sulilizumab injection, tqb2450 and tqb2618 injection of Zhengda Tianqing were newly undertaken, the NDA application of zebutinib capsule of Baiji Shenzhou was newly undertaken, and the androtinib hydrochloride capsule of Zhengda Tianqing The ind application for ensatinib hydrochloride capsule of Betta Pharmaceuticals Co.Ltd(300558) is newly undertaken.
This week's view: the 14th five year plan of the pharmaceutical industry is released, and the heavy top-level plan leads the development of the industry
Recently, the Ministry of industry and information technology and other nine departments jointly issued the "14th five year plan" for the development of pharmaceutical industry. Since the "13th five year plan", the China Meheco Group Co.Ltd(600056) industry has made outstanding achievements, but the problems restricting the development of the industry still exist. Entering the new development stage of the "14th five year plan", the pharmaceutical industry urgently needs to speed up the reform of quality, efficiency and power, so as to provide strong support for the construction of a new development pattern. The 14th five year plan put forward six specific goals, including the steady growth of economies of scale, the effectiveness of innovation driven transformation, the stability and controllability of industrial chain supply chain and the overall acceleration of international development. We reiterate the main line of innovation and international investment proposed in our annual strategy for 2022, and believe that under the guidance of the 14th five year plan, China Meheco Group Co.Ltd(600056) industrial innovation capacity is expected to be gradually improved. We suggest that we should actively pay attention to the gradual global competitiveness in the field of innovative medicine and machinery, realize export or external authorization, and open up new growth space in the world Enterprises that enjoy the dividends of the global market. In addition, the "going global" of Chinese patent medicine is also mentioned for the first time in the plan, and the development of Chinese patent medicine industry is expected to accelerate.
Investment strategy in 2022: know the constant changes, keep the right and innovate. Based on the changes and invariance of pharmaceutical investment, we believe that we should actively grasp the investment opportunities in the direction of innovation and internationalization in the future. In terms of innovative drugs and vaccines, Xinda Biology (H) and Rongchang Biology (H) are recommended; In terms of CXO, Yao Mingsheng (H), Pharmaron Beijing Co.Ltd(300759) , Shanghai Haoyuan Chemexpress Co.Ltd(688131) , Pharmablock Sciences (Nanjing) Inc(300725) are recommended; In the field of equipment and Life Sciences, Shenzhen Mindray Bio-Medical Electronics Co.Ltd(300760) , minimally invasive medicine (H), Shinva Medical Instrument Co.Ltd(600587) , Amoy Diagnostics Co.Ltd(300685) , Iray Technology Company Limited(688301) ; In terms of innovative cutting-edge technologies, pay attention to unlisted enterprises such as Aibo biology; For domestic consumption, we recommend Jinxin reproduction (H), Lbx Pharmacy Chain Joint Stock Company(603883) , Shandong Wit Dyne Health Co.Ltd(000915) , Boya Bio-Pharmaceutical Group Co.Ltd(300294) .
Risk analysis: price reduction risk of drugs / consumables; Industry "black swan" event; Risk of R & D failure.
