The sector bottomed out and rebounded, and the layout was actively combined with valuation and prosperity
In February, the pharmaceutical industry hit the bottom and rebounded, and the sub sections rose slightly. The pharmaceutical industry rebounded slightly in February 2022: Shenwan pharmaceutical outperformed the Shanghai and Shenzhen 300 index by 3.58%, with the rise and fall ranking among all Shenwan level industries. All sub sectors rose, led by biological products (+ 5.41%), medical devices (+ 4.03%) and other sectors. Affected by the centralized mining in Guangdong Province and the epidemic situation in Xi’an, the pharmaceutical industry had a sharp correction in January, and the industry experienced the negative impact of UVL list and ODAC meeting, which continued to decline; However, since mid February, the release of performance forecast shows that some sub industries continue to grow at a high speed, and the industry has rebounded after the market sentiment stabilized. We believe that the valuation and institutional position ratio of the pharmaceutical sector have been at an all-time low, with high allocation cost performance, and remain optimistic about the market of medicine throughout the year.
The importance of supply chain security is highlighted, and we are optimistic about the accelerated substitution of “made in China”. Although the US UVL list in early February had limited impact on the short-term business of relevant enterprises, it also caused huge fluctuations in market sentiment. At the same time, it warned the importance of China’s biopharmaceutical supply chain security, and the localization process of supply chain is expected to accelerate. Under the background of China’s pharmaceutical innovation and upgrading, driven by the epidemic and policies, the equipment and consumables suppliers of “made in China” have ushered in the opportunity of rapid development. The 14th five year plan for pharmaceutical industry development has repeatedly proposed to achieve stable and controllable supply chain. Leading companies have also increased investment in production capacity and products. We are optimistic that China Meheco Group Co.Ltd(600056) high-end manufacturing will be continuously upgraded and strengthened.
The path of innovative drugs out of the sea is becoming clearer and clearer, paying attention to the ability of global innovation. Xindilimab was frustrated when it went to sea, the legendary biological car-t was approved in the United States, and the two pioneers of the globalization of domestic innovative drugs were worried and happy in February. FDA’s decision on xindilimab and cilta cel further clarified the core idea guided by clinical value, and also indicated the direction for the subsequent innovative drugs to go to sea. We believe that for me too drugs, the regulation requires large-scale MRCT head-to-head with SOC, which has a large clinical investment and takes a long time; Therefore, higher requirements are put forward for the R & D and clinical speed of fast follower, and higher thresholds are set for capital investment and clinical ability of overseas (partners). For innovative drugs that meet unmet clinical needs, FDA can give regulatory flexibility, that is, it does not necessarily need large-scale MRCT to support regulatory approval.
Investment suggestion: the sector bottomed out and rebounded, and actively layout in combination with valuation and prosperity. After the rebound of the pharmaceutical sector in February, the valuation and institutional position ratio are still at a historical low. We suggest to seize the opportunity of oversold rebound / valuation repair of some sectors and actively carry out layout; Focus on pharmaceutical upstream, traditional Chinese medicine, innovative drugs and other sectors. The strategy portfolio for the third month of the March strategy portfolio is a share of a a share: the strategy portfolio of the strategy portfolio of the strategy portfolio for the third month of the strategy in the march of the strategy portfolio in the march of the march of the march of the march of the march of the march of the march of the march of the March. The portfolio portfolio portfolio of the strategy in the march of the march of the march of the March. The portfolio portfolio of the strategy portfolio of the strategy portfolio of the strategy in the march of the march of the strategy portfolio of the march of the march of the march of the March of the march of the strategy of the a share: 6 Shenzhen Soling Industrial Co.Ltd(002766) 00276ofthe following following following a a portfolio portfolio of the following a portfolio of the following a combination of a combination of a combination of a portfolio of a share: forthe Ginlong Technologies Co.Ltd(300763) 0076 Shenzhen Mindray Bio-Medical Electronics Co.Ltd(300760) of the\\\\\\\\\\\\\\\\\\; Hong Kong stocks: Yaoming biology, kingship biotechnology, Chinese traditional medicine, xianruida medical.
Risk warning: the R & D of innovative products fails or the progress is slower than expected; The price of drugs, devices and services is reduced or the policy is strictly higher than expected; Covid-19 epidemic repeatedly exceeded expectations and affected demand outside China.
