Market review: last week, the A-share pharmaceutical and biological index rose 4.85%, outperforming the CSI 300 index by 3.76pp and the gem composite index by 1.32pp, ranking 3 / 28, with excellent performance, mainly due to the rebound of CXO sector. The Hang Seng health index of Hong Kong stocks closed up 5.00% last week, outperforming the Hang Seng state-owned enterprise index of 7.80pp, ranking 1 / 11.
Tracking the research and development progress of listed companies: last week, Zhengda Tianqing’s trastuzumab for injection and Zhongsheng’s recombinant human coagulation factor VIII for injection were newly undertaken, Haosen’s hs-10384 tablets and Jiangsu Hengrui Medicine Co.Ltd(600276) shr-2010 injection were newly undertaken, bebt-305 tablets of bebet and syhx2005 ind of stone pharmaceutical group were newly undertaken. Atropine sulfate in Zhaoke ophthalmology is undergoing phase III clinical treatment; Hlx07 of Fuhong Hanlin is undergoing phase II clinical treatment; The recombinant humanized anti BLyS monoclonal antibody of Shanghai Junshi Biosciences Co.Ltd(688180) and hs-20094 of hausen pharmaceutical are in phase I clinical trials.
This week’s view: the negative factors of innovative drugs are cleared, and high-quality assets usher in a good opportunity for layout
The overall performance of the innovative drug sector in the past year has been poor. We estimate that the factors leading to the decline of the share price of innovative drug enterprises are not only the correction pressure of the previous overvalued value, but also the corresponding repressive factors on the fundamentals, such as the risk of price reduction in medical insurance negotiation and the risk of failure of innovative drugs at sea, which lead to some concerns about the development of the industry by market investors. With the release of the valuation pressure of the innovative drug sector and the clearing of the negative factors of medical insurance negotiation and going to sea, high-quality assets have ushered in a good opportunity for layout. Rongchang biological-b and kangnoah-b are recommended, and it is recommended to pay attention to Shanghai Junshi Biosciences Co.Ltd(688180) , Xinda biological, Jiangsu Hengrui Medicine Co.Ltd(600276) , Baiji Shenzhou, etc.
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.
