Event:
Recently, the Ministry of industry and information technology, the national development and Reform Commission, the Ministry of science and technology, the Ministry of Commerce, the National Health Commission, the Ministry of emergency management, the state medical security administration, the State Drug Administration and the State Administration of traditional Chinese medicine jointly issued the “14th five year plan” for the development of pharmaceutical industry.
Comments:
More and more departments have participated in the formulation of the pharmaceutical industry development plan. From the 12th Five Year Plan for pharmaceutical industry development issued by the Ministry of industry and information technology alone to the 13th five year plan for pharmaceutical industry development jointly issued by the Ministry of industry and information technology, the national development and Reform Commission, the Ministry of science and technology, the Ministry of Commerce, the national health and Family Planning Commission and the State Food and drug administration, Then nine departments jointly issued the “14th five year plan” for the development of pharmaceutical industry, and more and more departments participated in the formulation of the “pharmaceutical industry development plan”. The more departments involved, the more resources that can be coordinated and allocated. In particular, with the participation of the medical insurance bureau, the largest payer, we can see that the strategic positioning of medicine in all industrial categories is constantly improving.
This plan puts forward higher requirements for innovation and internationalization. In terms of innovation, in terms of chemical medicine, biological medicine innovation and key technology research, a series of innovative technology development directions are mentioned, including nucleic acid drugs, cell gene therapy, protac, polyclonal antibody and ADC, and the support attitude for pharmaceutical innovation is very clear. In internationalization, in one aspect of internationalization of one’s “one belt, one road” construction in 13th Five-Year, the internationalization of pharmaceutical industry planning is mentioned. The plan proposes to adhere to open development and win-win cooperation, actively respond to the new situation of reshaping the global pharmaceutical innovation chain, industrial chain and supply chain, deepen international industrial cooperation, accelerate the cultivation of new competitive advantages, and integrate into the global innovation network and industrial system at a higher level. We should fully attract global resources and participate in the global industrial division of labor, so as to make the China Meheco Group Co.Ltd(600056) industry an important part of the global pharmaceutical market.
This plan proposes a number of development goals. By 2025, the pharmaceutical industry should achieve the following goals. ① Steady growth in economies of scale: the average annual growth rate of operating income and total profits remained above 8%, and the proportion of added value in all industries increased to about 5%; ② The results of innovation driven transformation showed that the R & D investment of the whole industry increased by more than 10% annually, and the proportion of new sales of innovative products in the increment of operating revenue of the whole industry further increased; ③ The industrial chain and supply chain are stable and controllable: a number of key common technologies of industrialization have made breakthroughs, and positive results have been achieved in making up for weaknesses in key fields, so as to cultivate and form a number of key enterprises with leading and driving ability of industrial ecology in subdivided fields; ④ The supply guarantee ability has been continuously strengthened: the supply of drugs, vaccines, protective materials and diagnosis and treatment equipment for major diseases is sufficient, the supply of essential drugs, small drugs and drugs that are easy to be in shortage is stable, and the guarantee ability of a batch of children’s drugs and drugs for rare diseases urgently needed in clinic has been enhanced; ⑤ Systematic improvement of manufacturing level: the whole life cycle quality management of drugs and medical devices has been strengthened, the number of generic drugs passing the consistency evaluation has been further increased, and the development level of green, digital and intelligent enterprises has been significantly improved; ⑥ Overall acceleration of International Development: the overall acceleration of international development and the growth of pharmaceutical exports. Chinese patent medicine has made breakthroughs in “going global”, cultivated a number of world-famous brands, and formed a number of large pharmaceutical companies with global layout of R & D and production and high proportion of international sales.
Investment strategy: this plan has made a systematic top-level plan in terms of innovation and internationalization. Innovation and internationalization are the future development trend. It is suggested to pay attention to Baiji shenzhou-u (688235), Jiangsu Hengrui Medicine Co.Ltd(600276) (600276), Shanghai Junshi Biosciences Co.Ltd(688180) – U (688180), which are innovative drug leaders with strong R & D ability and ahead of internationalization.
Risk tips: R & D progress is less than expected, internationalization progress is less than expected, competition intensifies, policy risks, etc.
