Market review: last week, the A-share pharmaceutical and biological index fell 2.73%, underperforming the CSI 300 index by 3.56pp, outperforming the gem composite index by 1.32pp, ranking 26th among 28 sub industries, with poor performance, mainly due to the decline of CXO sector. The Hang Seng health index of Hong Kong stocks closed down 4.80% last week, underperforming the Hang Seng state-owned enterprise index by 7.13pp, ranking 11th among the 11 wind Hong Kong industry sectors.
Tracking the research and development progress of listed companies: last week, Sanofi’s tetravalent influenza virus split vaccine and Zhengda Tianqing’s application for the listing of recombinant human coagulation factor VIII for injection were newly undertaken, Shanghai Junshi Biosciences Co.Ltd(688180) treprizumab injection, Shanghai Fosun Pharmaceutical (Group) Co.Ltd(600196) sullimumab injection The clinical applications for bevacizumab injection and recombinant anti EGFR humanized monoclonal antibody injection were newly undertaken, and the ind applications for hsk36212 capsule of Haisco Pharmaceutical Group Co.Ltd(002653) , cisplatin micelle injection of stone Pharmaceutical Group and Jiangsu Hengrui Medicine Co.Ltd(600276) irinotecan hydrochloride liposome injection were newly undertaken. Telolizon hydrochloride of Langhua medicine, Omer medicine’s omexone sodium and Zejing biology’s Jack tinib hydrochloride are in phase III clinical trials; The recombinant humanized anti-interleukin-6 receptor monoclonal antibody (weidejie) of weidejie biology and the recombinant human GM-CSF oncolytic herpes simplex virus type II (oh2) (Vero cells) of Binhui biology are in phase II clinical practice; Hrs5091 of Jiangsu Hengrui Medicine Co.Ltd(600276) , Haisco Pharmaceutical Group Co.Ltd(002653) hsk31858 and Shijiazhuang Yiling Pharmaceutical Co.Ltd(002603) xy0206 are undergoing phase I clinical trials.
This week’s view: nmpa’s emergency approval of paxlovid is good for China’s cdmo suppliers
Recently, the nmpa emergency approved paxlovid for the treatment of mild to moderate covid-19 patients with severe risk in adults. China cdmo company has deeply participated in paxlovid’s global supply chain with the improvement of competitiveness. It is expected to further benefit with the approval of paxlovid in more countries around the world, focusing on Asymchem Laboratories (Tianjin) Co.Ltd(002821) , Wuxi Apptec Co.Ltd(603259) and Porton Pharma Solutions Ltd(300363) . In addition, according to China’s general strategy of “external defense input and internal defense rebound” and the general policy of “dynamic clearing”, the demand for covid-19 testing and vaccination from healthy people in China is expected to continue.
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.
