Market review: last week, the A-share pharmaceutical and biological index fell 2.07%, outperforming the Shanghai and Shenzhen 300 index by 2.15pp and the gem composite index by 0.82pp, ranking 5 / 28, with good performance, mainly due to the good performance of covid-19 related sectors. The Hang Seng health index of Hong Kong stocks fell 10.11%, underperforming the Hang Seng state-owned enterprise index by 1.97pp, ranking 10 / 11.
Tracking of R & D Progress of listed companies: last week, bgb-11417 of Baiji Shenzhou and hr18034 of Jiangsu Hengrui Medicine Co.Ltd(600276) were newly undertaken, and the clinical application of ql1706 injection of Qilu pharmaceutical was newly undertaken. The tq-b3139 capsule of Zhengda Tianqing and the cindilimab injection of Xinda biology are undergoing phase I clinical trials.
This week’s view: normalize epidemic prevention and grasp the investment opportunities of antigen self-test and covid-19 oral drug industry chain
On March 11, the covid-19 epidemic prevention and control group of the State Council issued the notice on printing and distributing the application scheme for covid-19 virus antigen detection (Trial), adding antigen detection as a supplement to covid-19 detection. On March 12, the State Food and Drug Administration approved the application for self-test application of five covid-19 antigen products for listing. We believe that we should pay attention to China’s antigen self-test market after the implementation of the policy. Antigen detection has the advantages of high efficiency, quickness and low cost. China’s ten billion level antigen detection market is about to be opened. Combined with the recent epidemic situation outside China and the development trend of in vitro diagnosis industry in the future, we believe that we can focus on three opportunities: 1) enterprises such as antigen antibody, NC membrane and packaging materials and accessories upstream of the industrial chain; 2) Testing enterprises with excellent product quality, sufficient production capacity and advanced approval progress; 3) C-end cooperative pharmacy. In addition, under the normalization of the epidemic situation, we should still pay attention to the investment opportunities related to covid-19 small molecule oral drug industry chain. It is suggested that attention should be paid to the Nanjing Vazyme Biotech Co.Ltd(688105) \ , Shanghai Haishun New Pharmaceutical Packaging Co.Ltd(300501) etc.
Investment strategy in 2022: know the constant changes, keep the right and innovate. Based on the changes and invariance of pharmaceutical investment, we believe that we should actively grasp the investment opportunities in the direction of innovation and internationalization in the future. In terms of innovative drugs and vaccines, Xinda Biology (H) and Rongchang Biology (H) are recommended; In terms of CXO, Yao Mingsheng (H), Pharmaron Beijing Co.Ltd(300759) , Shanghai Haoyuan Chemexpress Co.Ltd(688131) , Pharmablock Sciences (Nanjing) Inc(300725) ; In the field of equipment and Life Sciences, recommend Shenzhen Mindray Bio-Medical Electronics Co.Ltd(300760) , minimally invasive medical (H), Shinva Medical Instrument Co.Ltd(600587) , Amoy Diagnostics Co.Ltd(300685) , Iray Technology Company Limited(688301) ; In terms of innovative cutting-edge technologies, pay attention to unlisted enterprises such as Aibo biology; For domestic consumption, we recommend Jinxin reproduction (H), Lbx Pharmacy Chain Joint Stock Company(603883) , Shandong Wit Dyne Health Co.Ltd(000915) , Boya Bio-Pharmaceutical Group Co.Ltd(300294) .
Risk analysis: price reduction risk of drugs / consumables; Industry “black swan” event; Risk of R & D failure.
