Industry Review
During the reporting period, the pharmaceutical and biological industry index increased by 3.71%, ranking sixth among Shenwan’s 31 primary industries, outperforming the CSI 300 index (- 0.29%). From the perspective of sub industries, among the three-level pharmaceutical and biological industries, traditional Chinese Medicine III, offline pharmacies, medical equipment and APIs led the increase, with an increase of 13.37%, 10.08%, 8.38% and 7.26% respectively. In terms of valuation, as of December 31, 2021, the PE (TTM overall method, excluding negative values) of the pharmaceutical and biological industry was 33.97x (32.97x in the previous period). PE (TTM overall method, excluding negative values) of API, chemical agents, traditional Chinese medicine, blood products, vaccines, other biological products, pharmaceutical circulation, offline pharmacies, medical equipment, medical consumables, in vitro diagnosis, diagnostic services, medical R & D outsourcing, hospitals and other medical services in Shenwan tertiary industry are 37.9x, 33.8x, 34.2x, 37.4x, 33.3x, 33.1x, 12.9x respectively 33.1x、50.7x、19.7x、20.5x、24.3x、77.7x、84.1x、101.0x。
During the reporting period, the shareholders of 50 listed companies in the pharmaceutical and biological industries in the two cities reduced their net holdings by 2.265 billion yuan. Five of them increased their holdings by 257 million yuan and 45 reduced their holdings by 2.522 billion yuan.
Important industry information
The State Medical Insurance Bureau and the State Administration of traditional Chinese Medicine issued the guiding opinions on medical insurance supporting the inheritance, innovation and development of traditional Chinese medicine
The centralized collection results of 76 large varieties of Chinese patent medicines were officially announced
FDA Approves Novartis’s world’s first siRNA lipid-lowering drug
In 2021, FDA approved 49 new drugs, and the number of first in class reached a new high
Investment suggestions:
With the official implementation of the national medical insurance catalogue in 2021, the centralized purchase of national drugs and high-value consumables continues to be promoted and normalized. The three-year action plan for DRG / Dip payment method reform was officially released. In the future, quality and cost control will still be the main theme of the pharmaceutical policy. During the reporting period, the overall valuation of the pharmaceutical industry sector is still lower than the historical average level and slightly higher than the negative double standard deviation level. The current valuation has significant allocation advantages. We suggest increasing the allocation proportion of the industry and paying attention to investment opportunities in four aspects: first, drugstore chain companies with reasonable valuation and stable recovery; The second is the CXO industry, which has undergone in-depth adjustment recently. Against the trend, it pays attention to companies with sufficient orders and reasonable current valuation; Third, focus on the target of high-quality white horse stocks with better than expected performance in the third quarter; Fourth, pay attention to the consumer medical section. Under the background of medical insurance fee control, the ophthalmology and dental sub industries with consumption attribute have policy immunity, and consumption upgrading will drive their development; Fifth, pay attention to the traditional Chinese medicine sector. The release of the guiding opinions on medical insurance supporting the inheritance, innovation and development of traditional Chinese medicine shows the state’s determination to the inheritance, innovation and development of traditional Chinese medicine, which will play a positive role in the traditional Chinese medicine industry.
Risk tips:
The performance release of medical insurance negotiation varieties is less than expected; Covid-19 epidemic situation is repeated; Policy uncertainty.
