In 2022, the pharmaceutical sector performed well and the valuation was gradually repaired. This week, all A-Shares fell by 0.87% (weighted average of total market value), Shanghai and Shenzhen 300 fell by 1.68%, and the biomedical sector rose by 0.18%, which was stronger than the overall market. From the molecular section, chemical pharmaceuticals rose 2.62%, biological products fell 0.65%, medical services fell 1.83%, medical devices fell 1.03% and traditional Chinese medicine fell 0.33%.
The national medical insurance bureau released the statistical express on the development of medical security in 2021. By the end of 2021, the number of people covered by basic medical insurance had reached 1.364 billion, and the coverage remained stable at more than 95%. In 2021, the recovery of visits and covid-19 vaccine cost guarantee promoted the increase of medical insurance fund expenditure, and the expenditure of employees’ basic medical insurance fund (including maternity insurance) was 1.49 trillion yuan, a year-on-year increase of 15.5%; The expenditure of basic medical insurance fund for urban and rural residents was 914.8 billion yuan, a year-on-year increase of 12.0%. In addition, by the end of 2021, 30 DRG paying national pilot cities and 71 dip paying pilot cities in China have all entered the actual payment stage. In the background of medical insurance fee control and the promotion of DRG / Dip payment method, it will promote domestic substitution, reduce medical expenditure, accelerate the construction of hospital informatization and intelligence, and build a perfect diagnosis and treatment path. It is recommended to pay attention to Shenzhen Mindray Bio-Medical Electronics Co.Ltd(300760) , Weigao Co., Ltd., guichuangtong bridge, etc; On the other hand, general TCM medical service items can continue to be paid by item, and TCM medical institutions can temporarily not implement grouping according to disease diagnosis. The traditional Chinese medicine sector continues to be encouraged and supported by national policies, and it is recommended to pay attention to Shijiazhuang Yiling Pharmaceutical Co.Ltd(002603) , Chinese traditional medicine, etc.
Legendary biological car-t cell therapy cilta cel was approved by FDA, and domestic innovative drugs set sail. Cilta cel is the first successfully commercialized product of legendary biology and the second BCMA targeted car-t product approved for listing in the world; Compared with its competitors, cilta cel has an advantage in clinical effectiveness data and good safety. It has the potential to become the best in class BCMA targeted car-t product. The approval of cilta cel fully illustrates the FDA’s clinical value oriented approval standard, which has injected a shot in the arm into domestic innovative drugs that have been frustrated overseas. We believe that domestic innovative drugs that meet regulatory requirements and have excellent clinical data still have corresponding overseas value.
Risk tips: the risk of repeated epidemic, the risk of exceeding the expected cost of medical insurance control, and the risk of centralized drug consumption
