This week, SW pharmaceutical and biological industry outperformed Shanghai and Shenzhen 300 index. From December 20 to December 24, 2021, the SW pharmaceutical and biological industry index rose by 0.53%, outperforming the CSI 300 index by about 1.21 percentage points in the same period. In the SW pharmaceutical and biological industry segment, only medical services and biological products recorded negative returns, down 5.7% and 2.3% respectively; Traditional Chinese medicine, APIs, chemical pharmaceuticals, medical devices and pharmaceutical businesses increased by 9.41%, 3.08%, 2.38%, 1.48% and 0.16% respectively.
There was a slight net outflow from the pharmaceutical and biological industry this week. From December 20 to December 24, 2021, the land stock connect had a net outflow of 1.221 billion yuan, of which the Shanghai Stock connect had a net inflow of 1.12 billion yuan and the Shenzhen Stock connect had a net outflow of 2.341 billion yuan. In the Shenwan industry, the net inflow of power equipment ranks first, and the net outflow of food and beverage ranks first. The net outflow of the pharmaceutical and biological industry this week was 78 million yuan, which was lower than that of the previous week.
Industry news: Notice of Guangdong pharmaceutical trading center on Issuing the centralized volume procurement document of Guangdong alliance Qingkailing and other Chinese patent medicines. Compared with the previously released draft for comments, the seven provinces alliance Xinjiang withdrew and became six provinces, including Guangdong, Shanxi, Henan, Hainan, Ningxia and Qinghai; The number of purchased products has changed from 134 to 132, covering large clinical varieties such as Qingkailing, Xingnaojing, compound salvia miltiorrhiza, Xuesaitong and Ginkgo biloba, involving well-known traditional Chinese medicine enterprises such as Shenwei pharmaceutical, Guangzhou Baiyunshan Pharmaceutical Holdings Company Limited(600332) pharmaceutical, Xiangxue Pharmaceutical Co.Ltd(300147) , Zhejiang Conba Pharmaceutical Co.Ltd(600572) pharmaceutical and Yunnan Baiyao Group Co.Ltd(000538) . Hubei Provincial Medical Security Bureau issued the publicity of the results of the proposed successful selection of centralized volume procurement of inter provincial alliance of Chinese patent medicines. 97 enterprises and 111 products were selected, with a successful selection rate of 62%, and the dosage forms and specifications of the selected products were complete; The winning price decreased by 42% on average and 82% at the maximum.
Maintain recommended ratings for the industry. The long-term demand of the pharmaceutical and biological industry is improving, It is recommended to pay attention to CXO advantage leaders Wuxi Apptec Co.Ltd(603259) (603259), Hangzhou Tigermed Consulting Co.Ltd(300347) (300347), Pharmaron Beijing Co.Ltd(300759) (300759), Joinn Laboratories (China) Co.Ltd(603127) (603127), Shanghai Medicilon Inc(688202) (688202), Asymchem Laboratories (Tianjin) Co.Ltd(002821) (002821), Kyushu Pharmaceutical (603456), Porton Pharma Solutions Ltd(300363) (300363), Pharmablock Sciences (Nanjing) Inc(300725) (300725), etc. for scientific services, pay attention to Sino Biological Inc(301047) (301047), Nanjing Vazyme Biotech Co.Ltd(688105) (688105), etc. in terms of medical devices: focus on platform faucets Shenzhen Mindray Bio-Medical Electronics Co.Ltd(300760) (300760), medical beauty faucets Imeik Technology Development Co.Ltd(300896) (300896), ophthalmic device faucets Autek China Inc(300595) (300595), Eyebright Medical Technology(Beijing) Co.Ltd(688050) (688050), pharmaceutical equipment faucets Tofflon Science And Technology Group Co.Ltd(300171) (300171) and Truking Technology Limited(300358) (300358), rehabilitation medical device faucets Xiangyumedicalco.Ltd(688626) (688626), Nanjing Vishee Medical Technology Co.Ltd(688580) (688580), etc. leading retail pharmacies Dashenlin Pharmaceutical Group Co.Ltd(603233) (603233), Yifeng Pharmacy Chain Co.Ltd(603939) (603939), Yixintang Pharmaceutical Group Co.Ltd(002727) (002727), Lbx Pharmacy Chain Joint Stock Company(603883) (603883), etc. which are expected to benefit from the dual channel of negotiated drugs in the short term and are expected to usher in an inflection point. The policy side of the traditional Chinese medicine industry is relatively friendly. It is suggested to pay attention to Zhangzhou Pientzehuang Pharmaceutical Co.Ltd(600436) (600436), Yunnan Baiyao Group Co.Ltd(000538) (000538), Beijing Tongrentang Co.Ltd(600085) which have brand value and exclusive product advantages (600085), Guangzhou Baiyunshan Pharmaceutical Holdings Company Limited(600332) (600332), China Resources Sanjiu Medical & Pharmaceutical Co.Ltd(000999) (000999), Shijiazhuang Yiling Pharmaceutical Co.Ltd(002603) (002603), etc.
Risk tips: repeated epidemic, R & D failure, intensified industry competition, policy risk, product safety and quality risk, etc
