Zhou’s view: the China rare diseases conference was opened, and the drug market for rare diseases is expected to usher in rapid development. On December 18, the China rare diseases conference was held in Beijing in 2021. The conference carried out discussions and exchanges on the themes of “rare diseases prevention and security policies, drug innovation and R & D, clinical diagnosis and treatment, basic research, real world research and information technology application”.
Previously, the field of rare diseases in China developed slowly due to factors such as difficult diagnosis and insufficient drug accessibility. The common symptoms of rare diseases are complex, the diagnosis is difficult and the misdiagnosis rate is high. Previously, due to the lack of policies such as drug R & D, listing and payment, Chinese enterprises lacked R & D power. Previously, some rare disease drugs that have been listed in developed countries such as Europe, America and Japan lag in the listing process in China due to slow approval and other reasons. There are still some products that have been listed but the corresponding rare disease indications have not been approved, resulting in the inaccessibility of overseas drugs. At the same time, because rare diseases usually have high drug pricing and need to be taken for life, coupled with the small coverage of medical insurance and other factors, the patient’s family burden is too heavy and the actual ability to pay is insufficient.
In recent years, with the introduction and implementation of encouraging and supporting policy documents in relevant fields, the rare disease market is expected to usher in rapid development. After the publication of the first batch of rare diseases catalogue in May 2018, China issued a series of policies from R & D, production, listing, payment, diagnosis and treatment, and the rare diseases market ushered in rapid development. According to frost Sullivan’s prediction, China’s rare diseases drug market will grow at an annual compound growth rate of 34.5%, from US $1.3 billion in 2020 to US $25.9 billion in 2030.
It is suggested to focus on Beihai Kangcheng, a biomedical company focusing on rare diseases.
Market review: this week, the biomedical sector led the decline, down 2.34%, ranking 23rd in all SW primary industries. Since the beginning of this year, pharmaceutical biology has fallen by 9.11%, 4.18 percentage points lower than the CSI 300 index, ranking 23rd in all SW primary industries.
In terms of subdivided industries, except for biological products, the pharmaceutical and biological subdivided sectors fell this week. Biological products rose the most, up 0.48%, and medical services fell the most, down 7.43%. Since the beginning of this year, the performance of chemical raw materials and traditional Chinese medicine has been the best, up 24.96% and 16.17% respectively since the beginning of the year; Chemicals were the weakest performing sub industry, down 25.13%. Chemical agents (- 25.13%), pharmaceutical commerce (- 22.43%), biological products (- 14.22%) and medical devices (- 11.41%) underperformed the pharmaceutical and biological (SW) industry index.
In terms of individual stock performance, the top five stocks with gains this week are: Andon Health Co.Ltd(002432) (51.06%), China Reform Health Management And Services Group Co.Ltd(000503) (30.03%), Zhejiang Int’L Group Co.Ltd(000411) (23.66%), Shandong Sinobioway Biomedicine Co.Ltd(002581) (18.64%) and Truking Technology Limited(300358) (18.00%). The top five stocks with declines are: St Kangmei (- 13.58%), Shanghai Medicilon Inc(688202) (- 12.25%), Wuxi Apptec Co.Ltd(603259) (- 10.79%), Pharmaron Beijing Co.Ltd(300759) (- 10.79%) and Shenzhen New Industries Biomedical Engineering Co.Ltd(300832) (- 10.14%).
Valuation: this week’s valuation showed an upward trend. As of Friday (December 17), PE (TTM) and Pb (LF) in the pharmaceutical and biological (SW) industry were 33.6 times and 4.13 times respectively.
Risk warning: medical policy risk; Lower prices than expected; Systemic risk.
