Event: on January 30, in order to promote the development of the pharmaceutical industry, nine departments including the Ministry of industry and information technology, the national development and Reform Commission and the medical insurance bureau jointly issued the "14th five year plan" for the development of the pharmaceutical industry, summarized the achievements of China Meheco Group Co.Ltd(600056) Industrial development during the 13th Five Year Plan period, and evaluated the scale efficiency, innovation drive and Industrial chain, supply chain of drugs and equipment, manufacturing level and international development put forward goals, among which higher requirements are put forward for innovation and internationalization. On February 8, the unverified list (UVL) updated by the Bureau of industry and security (BIS) of the U.S. Department of Commerce announced that 33 entities headquartered in China were included in the so-called UVL, and the two subsidiaries of YaoMing biology in Shanghai and Wuxi were included in the list, causing the fluctuation of CXO share price. This incident shows that the United States controls the export of biological reactors and other containers and chemicals that have the potential to manufacture biological and chemical weapons.
The investment in pharmaceutical machinery innovation has been strengthened, and the requirements for scale efficiency have been improved: "the China Meheco Group Co.Ltd(600056) industry in the 14th Five Year Plan period is still in an important period of strategic opportunities. Based on the achievements made in the 13th Five Year Plan period, the pharmaceutical machinery innovation and scale efficiency of pharmaceutical industry in the next stage will pursue higher goals. In terms of innovation, during the "14th five year plan" period, R & D investment increased by more than 10% annually, and R & D innovation was strengthened. At the same time, it was emphasized that enterprises should carry out innovative R & D around unmet clinical needs, so as to promote the transformation of pharmaceutical enterprises from me too to me better; Emphasize the importance of innovation in traditional Chinese medicine, improve the clinical value oriented guiding principles of drug clinical R & D, and promote enterprises to reasonably layout R & D pipelines. In terms of economies of scale, it is required that the proportion of added value of the pharmaceutical industry should be increased to 5%, so as to further enhance the industry concentration.
Consolidate the foundation, speed up the process of internationalization, and create new international competitive advantages driven by internal and external factors: internationalization is another focus of the 14th five year plan. Based on the current internal and external environment, it is the general trend to innovate medicine and equipment and traditional Chinese medicine "go to sea". The plan points out that in the next stage, we should strengthen international drug administration cooperation and promote the integration of laws, regulations and standards outside China; Encourage enterprises to cooperate and exchange with multinational enterprises and introduce advanced technologies and standards; Carry out synchronous registration of innovative drugs outside China, participate in international multi center experiments, and standardize their own production and R & D according to international standards. Facing the global market, research and develop new targets and new mechanism drugs to realize the transformation from "license in" to "license out".
The pharmaceutical industry chain is autonomous and controllable, and the supply guarantee ability is improved: covid-19 epidemic has blocked the global industrial circulation, and the risks caused by the imperfect industrial chain appear; The UVL incident shows that the situation of international relations is not clear, and the independent control of the industrial chain is particularly important. At the same time, China's successful experience in epidemic prevention and control also reflects the importance of the storage, transportation and production of emergency materials and equipment. Enterprises in all links of the industrial chain should strengthen cooperation with upstream and downstream enterprises and scientific research institutions, benchmark the international advanced level, tackle key technical products and make up for the shortcomings of the industrial chain. Accelerate the development of "API + Preparation" integration; Open up the life science industry chain, accelerate the domestic substitution of equipment, instruments, consumables and reagents, realize the independent control of the pharmaceutical industry chain and avoid international risks. In terms of supply guarantee, strengthen the construction of pharmaceutical circulation, improve the R & D capacity of vaccines, drugs prone to shortage and varieties urgently needed in clinic, and ensure the supply of emergency products.
Investment suggestion: in the context of encouraging innovation of pharmaceutical machinery and improving the independent and controllable ability of the supply chain, we believe that the promulgation of the 14th five year plan once again shows the government's support for the pharmaceutical industry. It is suggested to focus on relevant companies with the ability of "sustainable innovation + internationalization" in the main line of "crossing medical insurance", such as Shenzhen Mindray Bio-Medical Electronics Co.Ltd(300760) , Baiji Shenzhou, Jiangsu Hengrui Medicine Co.Ltd(600276) ; The independent and controllable logic of the industrial chain, such as Truking Technology Limited(300358) , Tofflon Science And Technology Group Co.Ltd(300171) , Nanjing Vazyme Biotech Co.Ltd(688105) , etc.
Risk warning: the implementation of the policy is not as strong as expected; Macroeconomic risks, etc.
