Pharmaceutical biology fell 2.73%, 3.55 percentage points lower than the CSI 300 index and ranked 29th among the 31 shenwanyi sub banks. The pharmaceutical sub sector was mixed, with vaccines rising the most, up 6.39%, and medical R & D outsourcing falling the most, down 16.22%. As of February 11, 2022, the PE (TTM) of shenwanyi pharmaceutical industry was 29.25 times, and the latest premium rate relative to Shanghai and Shenzhen 300 was 119%. The valuation of sub hospital is 11.71 times, the lowest valuation of sub hospital is 11.71 times.
Industry highlights
The centralized purchase of chemical drugs, Chinese patent medicines and biological drugs was carried out in an all-round way
Yaoming biology is listed in the “unverified list” by the United States
Cinda / Lilly PD-1 McAb BLA application rejected
Pfizer covid-19 oral drug paxlovid approved in China
Pfizer covid-19 vaccine has a revenue of US $36.78 billion in 2021
China’s first IDH1 inhibitor approved for listing
Core view
The overall valuation of the industry is at the lowest level in history, and the industrial development trend is good. It is suggested to grasp the medium and short-term correction opportunity. In the long run, the normalization of volume procurement continues to accelerate industry differentiation, forcing enterprises to transform to innovation; The medical insurance catalogue was dynamically adjusted to continuously accelerate the volume of innovative drugs. Driven by policies, talents and capital, China’s innovative drugs have entered the harvest period of achievements and opened the road of internationalization. It is suggested to pay attention to innovation and related segments of the industrial chain: (1) at present, the R & D homogenization of innovative drugs in China is relatively serious, the targets and indications are relatively concentrated, and the industry has gradually changed from me too / me worth to me better, more innovative The advantages of domestic innovation leading enterprises with strong R & D strength, rich pipelines, reasonable gradient and outstanding product differentiation advantages will be further highlighted. It is suggested to pay attention to Jiangsu Hengrui Medicine Co.Ltd(600276) , Shanghai Fosun Pharmaceutical (Group) Co.Ltd(600196) ; (2) China’s vaccine industry continues to be in a high boom state, the iterative upgrading of technology is accelerated, and heavy products are listed one after another. Domestic innovative vaccines have become the support point to promote the sustainable growth of the industry market. The industry concentration continues to increase. We suggest paying attention to the leading high-quality vaccine enterprises Chongqing Zhifei Biological Products Co.Ltd(300122) , Shenzhen Kangtai Biological Products Co.Ltd(300601) with listing (including agency), heavy research or exclusive products, production and R & D strength; (3) With the progress of science and technology, new medical discoveries, new technologies and new fields are emerging, and biological emerging markets such as cell and gene therapy are developing rapidly. It is suggested to pay attention to the development trends of various industries, high-quality enterprises and upstream industrial chains, such as life science services; (4) Global and Chinese innovative drug R & D is booming, and China’s CXO industry is developing rapidly. It is expected that with the promotion of policies and the continuous improvement of technical level, the industry concentration is expected to further improve. It is suggested to pay attention to industry leaders and subdivided leaders.
Risk tips
Industry policy risk, drug safety risk, R & D risk and market competition risk.
