Policy update
On January 30, 2022, the Ministry of industry and information technology, the national development and Reform Commission, the Ministry of science and technology and other nine departments jointly issued the "14th five year plan" for the development of pharmaceutical industry, proposing the key tasks of promoting the innovation and transformation of pharmaceutical industry and realizing high-quality development during the 14th Five Year Plan period.
Brief comment
During the 14th Five Year Plan period China Meheco Group Co.Ltd(600056) industrial development is still in an important period of strategic opportunities. Facing some prominent problems restricting the development of the industry under the new situation, this 14th five year plan has made important strategic guidance: ① improve the ability of technological innovation; ② Improve the industrial chain and supply chain; ③ Improve the supply guarantee mechanism; ④ Improve manufacturing level; ⑤ Strengthen industrial upgrading and enhance international competitiveness.
In the field of innovative medicine, pay attention to the opportunities of innovation and transformation, internationalization and going to sea, and the investment opportunities of the upgrading of traditional Chinese medicine industry. The 14th five year plan emphasizes the R & D and innovation ability from an international perspective, the engineering and industrialization ability of biological analogues and innovative drugs, and the continuous improvement of international high-level production capacity; Adhere to life first, improve the supply guarantee system, improve the accessibility of drugs, and improve the medical reserve and emergency system. In the subdivided field of traditional Chinese medicine, the planning emphasizes the industrial upgrading and development from R & D to manufacturing and supply, and is optimistic about the new development in the direction of classic famous prescriptions, formula granules and innovative traditional Chinese medicine.
In terms of medical devices, we are optimistic about the R & D, industrialization, digitization and internationalization of innovative products.
In terms of internationalization, we continue to be optimistic about the high growth certainty of CXO industrial chain, the export promotion of API, generic pharmaceutical preparations and cdmo, and the internationalization of innovative drugs and Innovation Medical Management Co.Ltd(002173) devices.
Focus on the investment opportunities in the industrial chain and supply chain during the 14th Five Year Plan period, including the API sector at the end of the industrial chain, equipment and equipment in the supply chain, scientific instruments, upstream reagent consumables for scientific research, upstream consumables for the pharmaceutical industry and raw and auxiliary material packaging materials. The development plan emphasizes the scale, systematization, industrial upgrading, stability and controllability of industrial chain and supply chain, focuses on breaking through key common technologies, and complements the industrial weaknesses in key areas.
At the end of the industrial chain, we are optimistic about the industrial upgrading and industrial extension of the API sector: we are optimistic about the systematic improvement of the manufacturing level of the API sector, including the application of new technologies such as green pharmaceutical and continuous reaction. We are optimistic about the improvement of product quality of API enterprises, the research and development of new varieties, the industrial upgrading of cdmo and the industrial extension of API preparation integration.
In terms of supply chain, we are optimistic about industrial upgrading and domestic substitution in the direction of equipment and equipment, scientific instruments, upstream reagent consumables supporting scientific research, upstream consumables of pharmaceutical industry and raw and auxiliary packaging materials.
Investment advice
We are optimistic about the innovative transformation and industrial upgrading of the pharmaceutical industry during the 14th Five Year Plan period to achieve high-quality development. It is suggested to focus on the supply chain direction of upstream industrial chain, CXO, API, equipment and equipment, scientific instruments, upstream reagent consumables supporting scientific research, upstream consumables of pharmaceutical industry and raw and auxiliary packaging materials, and be optimistic about the internationalization, industrialization and high-quality development of innovative drugs and innovative instruments.
It is suggested to focus on: Wuxi Apptec Co.Ltd(603259) , Zhejiang Jiuzhou Pharmaceutical Co.Ltd(603456) , Zhejiang Ausun Pharmaceutical Co.Ltd(603229) , Focused Photonics (Hangzhou) Inc(300203) , Shijiazhuang Yiling Pharmaceutical Co.Ltd(002603) .
Risk tips
Orders are less than expected, R & D is less than expected, industry competition intensifies, policy supervision risks, etc.
