Antigen detection: policy implementation, Chinese market opening
Policy implementation: 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), officially proposing to add antigen detection as a supplement on the basis of nucleic acid detection.
From the perspective of test products: on March 4 and February 11, 2022, covid-19 antigen test kits of Beijing huaketai and Nanjing Nanjing Vazyme Biotech Co.Ltd(688105) were approved respectively. This is the second time that China started the registration of covid-19 antigen test kit products after the emergency approval of Guangzhou Guangzhou Wondfo Biotech Co.Ltd(300482) , Beijing jinwofu and Shenzhen Huada Yinyuan in 2020. On March 12, the State Food and Drug Administration issued a notice approving the application change of covid-19 antigen self-test application of the above five approved products, marking the official listing of antigen self-test products.
In our comment report "antigen self-test, seize the opportunity" on February 27, we have suggested that Hong Kong epidemic catalysis will accelerate the registration, approval and application of antigen testing products in China. Our previous judgment has been verified. In terms of the current policy, we believe that at this stage, the policy still positions antigen detection products as the secondary selection and supplement of nucleic acid detection, and it is difficult to promote the large-scale application of residents because the relevant supporting policies have not been implemented yet (such as the recognition of self-test results, the information acquisition of CDC, etc.). However, in our previous report, we have proposed that antigen detection, especially self-test, has the advantages of cost saving, graded diversion, avoiding the waste of medical resources and alleviating the tension of medical resources compared with nucleic acid detection. The characteristics of 15 minutes of results can also avoid the random flow and external transmission of infected persons in a long window before the results are found in nucleic acid detection. Therefore, we believe that covid-19 antigen detection still has great application potential and is expected to expand its application scope with the gradual liberalization of follow-up policies.
For the specific subject matter, we're combining with the approval, degree of specialization, product quality, productivity and other factors, combining with our approval, degree of specialization, quality of products, and productivity, and combining factors such as the status, degree of specialization, quality, and productivity, to suggest to focus on: the Shenzhen V&T Technologies Co.Ltd(300484) 82 , Shenzhen Bioeasy Biotechnology Co.Ltd(300942) etc.
Performance this week: API and IVD benefiting from covid-19 industrial chain performed well
This week, the pharmaceutical sector fell 1.85%, outperforming the Shanghai and Shenzhen 300 index by 2.37 percentage points, ranking the second in all industries. The turnover increased significantly. The turnover of the pharmaceutical industry this week was 580.5 billion yuan, accounting for 10.7% of the total turnover of all a shares, 0.9% higher than that of the previous week, and 2.5pct higher than the central level since 2018. Valuations continued to fall to record lows. As of March 11, 2022, the overall valuation of the pharmaceutical sector (historical TTM, overall method, excluding negative values) was 28.92 times, down 0.7pct month on month and adjusted to a historical low. The valuation premium rate of the pharmaceutical industry relative to the CSI 300 was 144%, an increase of 5.9pct over the previous week, significantly lower than the central level in the past four years (182.3%). According to the classification of wind CITIC medicine, the differentiation of eight sub sectors was obvious this week, with only chemical raw materials rising by 0.4% and all other sectors falling, of which medical services (down 4.1%), prepared pieces of traditional Chinese medicine (down 2.5%), proprietary Chinese medicine (down 2.3%) and chemical agents (down 2.2%) fell significantly.
According to the classification of key companies of Zheshang pharmaceutical, characteristic APIs performed best (up 4.1%), followed by medical devices (up 2.3%), and innovative pharmaceutical enterprises, medical services and biological drugs adjusted the most, down 5.0%, 4.6% and 4.6% respectively. In the specialty API sector, Ningbo Menovo Pharmaceutical Co.Ltd(603538) benefited from Pfizer covid-19 treatment drug related industry chain events, which catalysed an increase of 46.6%, and Apeloa Pharmaceutical Co.Ltd(000739) benefited from the good development momentum of cdmo business, which is expected to increase by 11.8%. The positive catalysis of covid-19 virus antigen detection on medical devices Guangzhou Wondfo Biotech Co.Ltd(300482) and Beijing Strong Biotechnologies Inc(300406) increased by 27.1% and 12.8% respectively.
From the excellent operating data of January to February 2022 such as Wuxi Apptec Co.Ltd(603259) , Hangzhou Tigermed Consulting Co.Ltd(300347) and so on, we believe that CXO sector is still a sector with high performance certainty in 2022. At present, the valuation has been adjusted to a historical low and the cost performance is prominent. It is suggested to focus on the layout in the medium and long term.
Pharmaceutical investment strategy in 2022: grasp manufacturing and welcome innovation
We suggest that investors should break the "core assets" and "sector concept" so that they can look at the investment opportunities in the upstream and manufacturing links with the industrial chain thinking, and the innovative pharmaceutical machinery will continue to survive the fittest during the transition period. We believe that in 2022, medicine should adhere to the investment strategy of "grasping manufacturing and welcoming innovation". Specifically, it is recommended to focus on:
1) manufacturing sector: API, cdmo and other subdivided fields, recommended Nanjing King-Friend Biochemical Pharmaceutical Co.Ltd(603707) , Apeloa Pharmaceutical Co.Ltd(000739) , Wuxi Apptec Co.Ltd(603259) , Asymchem Laboratories (Tianjin) Co.Ltd(002821) , Zhejiang Jiuzhou Pharmaceutical Co.Ltd(603456) , Porton Pharma Solutions Ltd(300363) , Hainan Poly Pharm.Co.Ltd(300630) , etc.
2) upstream: the upstream: pharmaceutical equipment, reagents, consumables, and other fields of pharmaceutical equipment, reagents, and consumables, and the upstream: the upstream: the fields of pharmaceutical equipment, reagents, consumables, and so on, and the fields of pharmaceutical equipment, reagents, and so on, and the fields of pharmaceutical equipment, reagents, and consumables, and the upstream: the upstream: the upstream: the fields of pharmaceutical equipment, reagents, consumables, and so on, and the fields of pharmaceutical equipment, and so on, and the fields of pharmaceutical equipment, reagents, and consumables, and so on, and the fields of pharmaceutical equipment, such as the fields of pharmaceutical equipment, and so on, and the recommendations are recommended for senszonzonzonzonpine international, and the Tofflon Science And Technology Group Co.Ltd(300171) Tofflon Science And Technology Group Co.Ltd(300171) Tofflon Science And Technology Group Co.Ltd(300171) Shanghai Titan Scientific Co.Ltd(688133) Qingdao Novelbeam Technology Co.Ltd(688677) etc.
3) innovation: for international equipment and pharmaceutical companies, it is recommended to pay attention to Micro-Tech (Nanjing) Co.Ltd(688029) , minimally invasive medicine, Beijing Balance Medical Technology Co.Ltd(688198) , Baiji Shenzhou, Xinda biology, Shanghai Junshi Biosciences Co.Ltd(688180) , kangfang biology, etc.
4) others: Other: consumer attributes, medical services, innovative supporting industry companies, medical services, and innovative supporting industry companies, recommending companies with consumer attributes, medical services, and innovative supporting industries, recommending companies with Hangzhou Tigermed Consulting Co.Ltd(300347) etc.
Risk tips
Changes in industrial policies; The price reduction of core products exceeded expectations; R & D progress is less than expected.
