Market review and Industry Valuation
Pharmaceutical biology rose 1.08%, underperforming the CSI 300 index by 2.06 percentage points, ranking 11 among the 28 Shenwan sub banks. Among the pharmaceutical sub sectors, biological products and chemical raw materials decreased by 0.01% and 1.64% respectively, and pharmaceutical business increased the most, up 4.53%. As of December 10, 2021, the PE (TTM) of shenwanyi pharmaceutical industry was 34.84 times, and the latest premium rate relative to Shanghai and Shenzhen 300 was 158%. The valuation of traditional Chinese medicine service in the sub sector was the highest, 77.28 times, and that of pharmaceutical business was the lowest, 15.80 times.
Industry highlights
Recover over 50 billion medical insurance funds in three years
China’s first covid-19 neutralizing antibody drug approved for marketing
Progress of New Coronavirus pneumonia
As of December 10, 2021, There are 99604 confirmed cases in China (excluding Hong Kong, Macao and Taiwan), 493 confirmed cases, 46,36 deaths, 93696 cured and discharged cases, and 10431 confirmed cases imported from abroad. In terms of covid-19 vaccination, as of December 10, 2021, the country has received 2.592 billion doses of covid-19 virus vaccine.
As of December 10, 2021, 269 million cases have been confirmed in the world. The country with the largest number of confirmed cases is the United States, with a total of 50.75 million, followed by India and Brazil, with 34.68 million and 22.18 million confirmed respectively. In terms of covid-19 vaccination, by December 10, 2021, 84.06 doses of covid-19 vaccine had been vaccinated worldwide, and the vaccination proportion (number of complete vaccinations / total population) was 45.35%.
Core view
The overall development trend of the industry is good, Suggestions for long-term attention: (1) innovative drugs: intensive introduction of policies, normalization of volume procurement, continuous acceleration of industry differentiation, forcing enterprises to transform to innovation; the medical insurance catalogue has been established for dynamic adjustment, and policies have vigorously promoted innovative R & D, China Meheco Group Co.Ltd(600056) Innovation has entered the golden development period and opened the road of internationalization. It is suggested to pay attention to domestic innovation leading enterprises Jiangsu Hengrui Medicine Co.Ltd(600276) , Shanghai Fosun Pharmaceutical (Group) Co.Ltd(600196) with strong R & D strength, rich pipelines, reasonable gradient and outstanding product differentiation advantages. In addition, the research and development of innovative drugs in the world and China is hot, and new discoveries, new technologies and new fields are emerging and developing rapidly. China is about to enter the commercialization stage in the subdivided fields such as double antibody and car-t. it is suggested to pay active attention to the development trends and relevant high-quality enterprises; (2) Medical outsourcing services (cdmo / CMO / CRO): driven by innovative drug R & D and other factors, China’s CXO industry is growing rapidly. With the promotion of industrial policies and the improvement of drug quality standards, the industry concentration is expected to increase. It is recommended to pay attention to industry leaders and market segments, such as Wuxi Apptec Co.Ltd(603259) , Pharmaron Beijing Co.Ltd(300759) ; (3) Self consumption: with the continuous improvement of China’s economic level, the pharmaceutical industry has ushered in the demand for consumption upgrading. The prosperity of the subdivided fields with self consumption attribute and avoiding the medical insurance fee control policy continues. It is suggested to pay attention to relevant high-quality enterprises Zhejiang Wolwo Bio-Pharmaceutical Co.Ltd(300357) .
Risk statement
Industry policy risk, drug safety risk, R & D risk and market competition risk.
