Ping An View:
Industry perspective: the Health Commission issued the notice on printing and distributing the administrative measures for mutual recognition of inspection and test results of medical institutions to promote graded diagnosis and treatment. On February 18, the Health Commission issued the notice on printing and distributing the management measures for mutual recognition of inspection and inspection results of medical institutions, which mentioned that medical institutions should follow the principle of “taking quality and safety as the bottom line, quality control as the premise, reducing the burden of patients as the guidance, meeting the needs of diagnosis and treatment as the foundation, and the judgment of receiving doctors as the standard”, Carry out mutual recognition of inspection results.
The phenomenon that Chinese patients gather in public hospitals, the number of private medical institutions is small, and the resources are not effectively utilized is obvious. In 2021, the number of public hospitals and private hospitals in China was 118000 and 256000 respectively, and the number of visits was 3.22 billion and 580 million respectively. The State encourages graded diagnosis and treatment to reduce the waste of medical resources. The release of the notice will promote its process. The mutual recognition of the inspection results of medical institutions will help to improve the utilization of medical resources, reduce medical costs, improve the efficiency of diagnosis and treatment, and further improve the medical experience of the people. This will drain patients to medical institutions with shorter queuing time for inspection and testing, so as to bring more patient flow to private hospitals, reduce the burden of public hospitals and achieve a win-win situation.
Investment strategy: Main Line 1: innovation Shenzhen New Industries Biomedical Engineering Co.Ltd(300832) chain, including innovative drugs (machinery) and CXO. CDE’s new deal accelerates the evolution of China’s “new ecology” of innovation, and the industry is facing “re differentiation”. Pay attention to companies with clinical Oriented Innovation Ability and license out ability. It is suggested to pay attention to: Jiangsu Hengrui Medicine Co.Ltd(600276) , Baiji Shenzhou, Xinda biology, Corning Jerry, Shenzhen Chipscreen Biosciences Co.Ltd(688321) . In terms of CXO, we prefer cdmo and macromolecular CXO tracks by maintaining a high outlook. We suggest to pay attention to: Asymchem Laboratories (Tianjin) Co.Ltd(002821) , Porton Pharma Solutions Ltd(300363) , Pharmablock Sciences (Nanjing) Inc(300725) . Main line 2: products go to sea. The overseas market is a huge incremental market, there is a high threshold for the export of preparations, and the export of medical devices to the sea has also become a new growth driving force of the industry. It is suggested to pay attention to: Nanjing King-Friend Biochemical Pharmaceutical Co.Ltd(603707) , Hainan Poly Pharm.Co.Ltd(300630) , Shenzhen Mindray Bio-Medical Electronics Co.Ltd(300760) , etc. Main line 3: consumer healthcare. With the growth of per capita disposable income, the demand for consumer medical care continues to increase. At the same time, consumer medical products are self funded products, with independent pricing power and immunization fee control policy. It is suggested to pay attention to: Topchoice Medical Co.Inc(600763) , Aier Eye Hospital Group Co.Ltd(300015) , Yantai Zhenghai Bio-Tech Co.Ltd(300653) , etc. Main line 4: the traditional Chinese medicine sector has been in the adjustment stage for a long time, and the overall valuation is low. Enterprises with steady performance growth in the sector have high cost performance and prominent layout advantages. Moreover, the export of traditional Chinese medicine products is small and the internal circulation attribute is obvious, so it will not be disturbed by foreign policies towards China. Some traditional Chinese medicine products are more inclined to health care products with stronger consumption attributes, which can be benchmarked with some food enterprises. On this premise, we believe that the subject matter with sufficient adjustment and low valuation deserves special attention. Among them, enterprises with a larger proportion of OTC drugs in the fee control policy of immune medical insurance, better room for price increase of products and a smaller proportion of traditional Chinese medicine injections have greater flexibility. It is suggested to pay attention to: Henan Lingrui Pharmaceutical Co.Ltd(600285) , Kpc Pharmaceuticals Inc(600422) , etc. In addition to the above three main lines of boom and medicine, there are also high barriers to nuclear medicine. It is suggested to pay attention to: Zhejiang Starry Pharmaceutical Co.Ltd(603520) , Jiangxi Fushine Pharmaceutical Co.Ltd(300497) , Zhejiang Tianyu Pharmaceutical Co.Ltd(300702) , Yantai Dongcheng Biochemicals Co.Ltd(002675) , and Yuanda medicine.
Industry highlights: 1) the latest progress of clinical research of Rongchang biological vidicizumab in the treatment of locally advanced or metastatic urothelial carcinoma was announced; 2) Livzon Pharmaceutical Group Inc(000513) key data of sequential enhanced phase III clinical trial of recombinant covid-19 vaccine; 3) Bristol Myers Squibb cd19car-t cell therapy breyanzi in the treatment of large B-cell lymphoma has been given priority review by FDA; 4) AstraZeneca / Sanofi respiratory syncytial virus (RSV) innovative drug nirsevimab has entered the review in the EU.
Market review: last week, the A-share pharmaceutical sector rose 4.85%, the Shanghai and Shenzhen 300 index rose 1.08% in the same period, and the pharmaceutical industry ranked third among 28 industries. Last week, the H-share pharmaceutical sector rose 5.00%, while the Hang Seng Composite Index fell 1.61% in the same period. The pharmaceutical industry ranked first among 11 industries.
Risk tips: 1) policy risk: policies such as medical insurance fee control and drug price reduction have a great negative impact on the industry; 2) R & D risk: pharmaceutical R & D investment is large and difficult, and there is the possibility of R & D failure or slow progress; 3) Corporate risk: the company’s operation does not meet expectations.
