Market review and Industry Valuation
Pharmaceutical biology rose 0.53%, outperforming the CSI 300 index by 1.20 percentage points and ranking 10th among the 31 Shenwan sub banks. The pharmaceutical sub sector was mixed, with traditional Chinese medicine rising the most, up 9.41%, and medical R & D outsourcing falling the most, down 7.66%. As of December 24, 2021, the PE (TTM) of shenwanyi pharmaceutical industry was 33.66 times, and the latest premium rate relative to CSI 300 was 140%. The valuation of TCM hospitals in the sub sector was the highest, 91.80 times, and the valuation of medical consumables was the lowest, 13.64 times.
Industry highlights
The three-year action plan for DRG / Dip payment reform was launched
Drug registration verification storm strikes again
19. Bid opening of centralized procurement of Chinese patent medicines of provincial Alliance
The second domestic PD-L1 and rare disease drugs were approved for listing
Progress of New Coronavirus pneumonia
As of December 26, 2021, there were 101277 confirmed cases in China (excluding Hong Kong, Macao and Taiwan), 2158 confirmed cases, 4636 dead cases, 94483 cured and discharged cases, and 10932 confirmed cases imported from abroad. As for covid-19 vaccination, as of December 25, 2021, the country had received 2.758 billion doses of covid-19 virus vaccine.
As of December 25, 2021, the cumulative number of confirmed cases in the world is 280-100 million. The country with the largest cumulative number of confirmed cases is the United States, with a total of 50.75 million, followed by the United States and India, with 53.22 million and 34.79 million confirmed cases respectively. In terms of covid-19 vaccination, by December 25, 2021, 89.56 doses of covid-19 vaccine had been vaccinated worldwide, and the vaccination proportion (number of complete vaccinations / total population) was 48.32%.
Core view
With the strong promotion of national policies, the status of traditional Chinese medicine has been raised to an unprecedented level. It is expected that the performance of the sector may be further improved with the continuous improvement of the industry pattern, the good epidemic prevention and control in China, and the downstream price increase driven by the rising price of traditional Chinese medicine. At present, the valuation of traditional Chinese medicine is reasonable: (1) under the reform of the review and approval system of traditional Chinese medicine, the approval of innovative traditional Chinese medicine is accelerated. 2021 is the most listed year in recent years. It is recommended to pay attention to the listed companies of high-quality innovative traditional Chinese medicine with strong comprehensive strength Tasly Pharmaceutical Group Co.Ltd(600535) ; (2) some time-honored and OTC brand products have consumption attributes and avoid the medical insurance fee control policy. It is recommended to pay attention to Zhangzhou Pientzehuang Pharmaceutical Co.Ltd(600436) , China Resources Sanjiu Medical & Pharmaceutical Co.Ltd(000999) Wait.
The overall development trend of the industry is improving, and innovation is the eternal theme. On the one hand, the normalization of volume procurement continues to accelerate industry differentiation, forcing enterprises to transform to innovation; On the other hand, the medical insurance catalogue was dynamically adjusted to continuously accelerate the volume of innovative drugs. Driven by policies, talents and capital, China’s innovative drugs have entered the harvest period, And open the road to internationalization: (1) At present, the R & D homogenization of innovative drugs in China is relatively serious, and the targets and indications are relatively concentrated. The industry has gradually transformed and upgraded from me too / me worth to higher quality and more innovative me better and first in class. The advantages of domestic innovation leading enterprises with strong R & D strength, rich pipelines, reasonable gradient and prominent product differentiation advantages will be further highlighted. It is recommended to pay attention to them Jiangsu Hengrui Medicine Co.Ltd(600276) , Shanghai Fosun Pharmaceutical (Group) Co.Ltd(600196) etc; (2) With the progress of science and technology, new medical discoveries, new technologies and new fields are emerging, and biological emerging markets such as cell and gene therapy are developing rapidly. It is suggested to pay attention to industrial development trends, high-quality enterprises and upstream industrial chains, such as life science services; (3) Global and Chinese innovative drug R & D is booming, and China’s CXO industry is developing rapidly. It is expected that with the promotion of policies and the continuous improvement of technical level, the industry concentration is expected to further improve. It is recommended to pay attention to industry leaders and sub leaders, such as Wuxi Apptec Co.Ltd(603259) , Porton Pharma Solutions Ltd(300363) .
Risk statement
Industry policy risk, drug safety risk, R & D risk and market competition risk.
