Report summary:
Market this week (2021.12.20-2021.12.24)
On Monday (December 20), Baicheng pharmaceutical landed in the secondary capital market. Therefore, this week, we will focus on the rise of “pharmaceutical + clinical” comprehensive cro under the upgrading of China Meheco Group Co.Ltd(600056) product structure.
The continuous release of policy dividends has driven the accelerated upgrading of China’s generic drug product structure
China is in the process of upgrading from a big generic country to a powerful generic country, and there is still a large market growth space for China’s high-end generic R & D services. According to CDE data, among the 189000 drug approval numbers in China, generic drugs account for more than 95%. According to the prediction of toubao Research Institute, the market scale of generic drugs in China is estimated to reach 1333.5 billion yuan in 2023. It is mainly the implementation and promotion of consistency evaluation, centralized purchase policy, MAH system and other policies, so as to create a good macro environment for the development of generic pharmaceutical business.
The industry is in full swing, and the new force of “pharmacy + clinical” comprehensive cro serving China Meheco Group Co.Ltd(600056) is rising
1) The emerging new forces of China’s small and medium-sized pharmaceutical enterprises have accelerated the expansion of China’s outsourcing market: with the normalization of MAH system, consistency evaluation and drug “centralized purchase”, the government originally wanted to drive the in-depth integration of resources in the localized pharmaceutical R & D industry chain, so it gave birth to a number of “pharmaceutical + clinical” comprehensive cros with service China Meheco Group Co.Ltd(600056) as the core goal. 2) The competition pattern of “pharmaceutical + clinical” comprehensive cro is relatively scattered, and has not yet formed an absolute subdivision leader. The volume of each company is small, the penetration rate is limited, and the follow-up growth space and potential are sufficient. At the same time, this type of cro enterprises are also overweight in the field of innovative drugs to improve the ceiling of the industry. 3) In terms of individual stocks, we suggest giving priority to Baicheng pharmaceutical, which has pure main business and stable growth performance; Secondly, we pay attention to the poor expectation, and cro subsidiaries are expected to bring high elasticity of Wuhan Hiteck Biological Pharma Co.Ltd(300683) .
This week’s stock recommendations focus on the portfolio
Growth Portfolio: Pharmablock Sciences (Nanjing) Inc(300725) , Beijing Balance Medical Technology Co.Ltd(688198) , Eyebright Medical Technology(Beijing) Co.Ltd(688050)
Robust combination: Zhangzhou Pientzehuang Pharmaceutical Co.Ltd(600436) , Jianmin Pharmaceutical Group Co.Ltd(600976) , Zhejiang Jiuzhou Pharmaceutical Co.Ltd(603456)
Elastic combination: Baicheng pharmaceutical, Jinghua Pharmaceutical Group Co.Ltd(002349) , Jiangsu Sinopep-Allsino Biopharmaceutical Co.Ltd(688076)
Risk statement
Risk of policy changes in the pharmaceutical industry; The risk of declining medical consumption demand; Other systemic risks.
