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On December 24, 2021, the 32nd meeting of the Standing Committee of the 13th National People’s Congress of the people’s Republic of China revised and adopted the science and technology progress law of the people’s Republic of China (hereinafter referred to as the science and technology progress law).
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The revision of the law of the people’s Republic of China on scientific and technological progress after 13 years is of great significance to support the progress of China’s high-end scientific research. The bill was first adopted at the second meeting of the Standing Committee of the Eighth National People’s Congress on July 2, 1993, revised at the 31st meeting of the Standing Committee of the Tenth National People’s Congress on December 29, 2007 and revised at the 32nd meeting of the Standing Committee of the Thirteenth National People’s Congress on December 24, 2021.
Thirdly, highlight the active role of government procurement in the development of scientific and technological innovative products and services. It is emphasized that “for the scientific and technological innovation products and services of domestic natural persons, legal persons and unincorporated organizations, under the condition that the function, quality and other indicators can meet the needs of government procurement, government procurement should be purchased; if they are put on the market for the first time, government procurement should take the lead in purchasing”. Compared with the 2007 act, this additional emphasis “shall not be restricted on the grounds of business performance”.
Echoing this year’s specialization and innovation, accelerate the domestic substitution of high-end technology. At the meeting of the Political Bureau of the CPC Central Committee held on July 30, it was proposed to speed up the solution of the “bottleneck” problem and develop “specialized and new” small and medium-sized enterprises. The national “specialized and new” SME Summit Forum held on July 27 pointed out that the soul of “specialized and new” is innovation, and stressed that “specialized and new” is to encourage innovation. We expect that in the future, all localities are expected to jointly publish the supporting rules of the science and technology progress law.
There is much room for the improvement of equipment in the direction of advanced pharmaceutical manufacturing: on November 9, the notice on the implementation plan for promoting the high-quality development of API Industry issued by the Ministry of industry and information technology of the national development and Reform Commission proposed to face the cutting-edge technology field of API production, guide backbone enterprises to cooperate with the upstream and downstream of the industrial chain and scientific research institutes to deploy the innovation chain, Accelerate the development of high-end production equipment such as nucleic acid reactor and special consumables such as high-end membrane materials, break through the bottleneck of industrial development and improve the independent supporting level of the industrial chain. Strengthen the sharing of advanced technologies in petrochemical, chemical, pharmaceutical and other industries, and improve the level of industrial integration and innovation.
The localization rate of domestic high-end scientific instruments is low and the substitution space is large: the localization rate of domestic high-end scientific instruments in China is low and the domestic substitution space is huge. According to the “statistics of procurement data of scientific instruments with more than 2 million yuan from the national development and Reform Commission” provided by Xia Yang, a researcher at the Institute of microelectronics of the Chinese Academy of Sciences and an expert on major scientific instrument projects of the Ministry of science and technology, the localization rate of mass spectrometer is only 1.19%.
Investment advice
We are optimistic about the pharmaceutical upstream supply chain driven by scientific and technological innovation and high-end manufacturing, including equipment, scientific instruments, upstream consumables and high-end raw and auxiliary packaging materials.
It is suggested to pay attention to: Sensong international, Zhejiangtailin Bioengineering Co.Ltd(300813) , Focused Photonics (Hangzhou) Inc(300203) , Suzhou Nanomicro Technology Co.Ltd(688690) , Nanjing Well Pharmaceutical Group Co.Ltd(603351) , etc.
Risk statement
Policy promotion is less than expected, market competition intensifies, innovative product R & D fails, etc
