Key investment points
Event: on December 30, 2021, the national medical insurance bureau and the administration of traditional Chinese Medicine issued the guiding opinions on medical insurance supporting the inheritance, innovation and development of traditional Chinese medicine, giving full play to the advantages of the medical security system and supporting the inheritance, innovation and development of traditional Chinese medicine. On the same day, the State Food and Drug Administration issued the “14th five year plan” for national drug safety and promoting high-quality development, accelerating China’s leap from a large pharmaceutical country to a powerful pharmaceutical country, so as to better meet the health needs of the people.
Developing Chinese medicine is an important part of China’s socialist cause in the new era: 1) integrating TCM and medical institutions into the designated medical insurance, and integrating Internet plus Chinese medicine services into the scope of medical insurance payment. 2) Simplify the review procedures for new price items of new technologies in traditional Chinese medicine; 3) The sales of Chinese Herbal Pieces in hospitals can be increased to 25%; 4) Include Chinese herbal pieces, Chinese patent medicines and traditional Chinese medicine preparations of medical institutions into the catalogue of Medicare drugs; 5) Encourage all localities to include TCM technology with accurate curative effect and reflecting the characteristics and advantages of TCM into the scope of medical insurance payment; 6) TCM medical service items may not be paid by disease diagnosis related group (DRG) temporarily; 7) Encourage the inclusion of traditional Chinese medicine formula granules into the online trading of provincial pharmaceutical centralized procurement platform.
Transformation and upgrading of pharmaceutical industry, innovation and R & D and international synchronization: general principle: adhere to reform and innovation. Innovate the concept of drug supervision, deepen the reform of supervision system and mechanism, develop supervision science and technology through multiple channels, give play to the guiding and promoting role of supervision, stimulate the vitality and creativity of the pharmaceutical industry, and promote the transformation and upgrading of the pharmaceutical industry. Vision 2035: 1) the ability of drug supervision and evaluation reaches the international advanced level; 2) Effectively promote the prevention of major infectious diseases and the treatment of refractory and rare diseases; 3) Remarkable progress has been made in high-quality development, the drug innovation and R & D capacity has reached the international advanced level, and the leap from a large pharmaceutical country to a powerful pharmaceutical country has been basically realized. 2025 development goal: approve a batch of innovative drugs urgently needed in clinic and accelerate the listing of innovative drugs with clinical value.
The pharmaceutical industry is at a critical stage of transformation and upgrading, and the State supports high-quality development: 1) support industrial upgrading and development and carry out policy pilot, support the development of industrial clusters such as the Yangtze River Delta, and create an innovation platform and a new growth pole; 2) Support the innovative development of drugs, promote and solve the “neck” problem of the industry; 3) Encourage the simultaneous R & D and application of new drugs at home and abroad, include qualified drugs into the rapid registration procedure, and encourage the R & D and listing of new drugs with clinical value and generic drugs in urgent need of clinical treatment; 4) Increase support for innovative R & D and improve the efficiency of review and approval; 5) Improve the evaluation evidence system combining traditional Chinese medicine theory, human experience and clinical trials, and explore the establishment of an evaluation standard system in line with the characteristics of traditional Chinese medicine.
Investment suggestion: the state strongly supports the development of traditional Chinese medicine, inherits and innovates the development of traditional Chinese medicine, which is not only a major event for the great rejuvenation of the Chinese nation, but also an inevitable requirement for building a health development model with Chinese characteristics in which traditional Chinese medicine and Western medicine complement and develop in a coordinated manner; High quality and innovative development of drugs are the main theme in the next 5-15 years. In 14th Five-Year, the 12 full text of the plan referred to clinical value and clinical urgent need, 12 references to innovative drugs and 11 references to generic drugs. The SFA will further encourage and support the research and development of innovative drugs and generic drugs with clinical value.
Specific allocation ideas: 1) in the field of traditional Chinese medicine: it is recommended to pay attention to Zhejiang Jolly Pharmaceutical Co.Ltd(300181) , Chongqing Taiji Industry (Group) Co.Ltd(600129) , Chinese traditional medicine, Beijing Tongrentang Co.Ltd(600085) , and recommend Zhangzhou Pientzehuang Pharmaceutical Co.Ltd(600436) ; 2) Biotech innovative drugs: it is recommended to pay attention to kangfang biology, etc., and Xinda biology, Yasheng medicine-b, Jiangsu Hengrui Medicine Co.Ltd(600276) ; 3) Innovative drugs and industrial chain: recommend Zhejiang Jiuzhou Pharmaceutical Co.Ltd(603456) , Wuxi Apptec Co.Ltd(603259) , Asymchem Laboratories (Tianjin) Co.Ltd(002821) ; 4) API field: it is recommended to pay attention to Jiangxi Synergy Pharmaceutical Co.Ltd(300636) , Apeloa Pharmaceutical Co.Ltd(000739) , Zhejiang Tianyu Pharmaceutical Co.Ltd(300702) and recommend Zhejiang Starry Pharmaceutical Co.Ltd(603520) .
Risk warning: R & D progress is not as expected; The price reduction of drugs exceeded expectations; The medical insurance policy was further tightened.
