Core view
View of Medicine Week: covid-19 antigen detection application scheme is released, China’s self-test market is opened, covid-19 antigen detection application scheme is released, and the network channels of grass-roots medical treatment and pharmacies are fully open. On March 11, the National Health Commission issued the application scheme for covid-19 virus antigen detection (Trial) (hereinafter referred to as the “scheme”) to promote the monitoring mode of “antigen screening and nucleic acid diagnosis”, and add antigen detection as a supplement to nucleic acid detection. According to the scheme, the applicable groups for antigen detection include 1) those who go to grass-roots medical institutions with respiratory tract, fever and other symptoms within 5 days; 2) Isolate observers; 3) Community residents with antigen self-test needs. For residents’ antigen self-test needs, they can be purchased through retail pharmacies and online sales platforms. Ten antigen detection products have been approved in China. As of March 13, the State Food and drug administration has approved the listing of covid-19 antigen products of Guangzhou Wondfo Biotech Co.Ltd(300482) , Nanjing Vazyme Biotech Co.Ltd(688105) , Beijing Wantai Biological Pharmacy Enterprise Co.Ltd(603392) , Beijing Hotgen Biotech Co.Ltd(688068) , Beijing Lepu diagnosis, Tianjin boosses, Chongqing mingdaojietest, Beijing jinwofu, Shenzhen Huada Yinyuan and Beijing huaketai. We expect that more antigen detection products will be approved in the future. Due to the product advantages and first mover advantages, the enterprises with priority approval are expected to quickly seize the market and take the lead in benefiting. It is suggested to pay attention to high-quality companies in the antigen detection industry chain, including Guangzhou Wondfo Biotech Co.Ltd(300482) , Nanjing Vazyme Biotech Co.Ltd(688105) , Beijing Wantai Biological Pharmacy Enterprise Co.Ltd(603392) , Beijing Hotgen Biotech Co.Ltd(688068) , Bgi Genomics Co.Ltd(300676) , Lepu Medical Technology (Beijing) Co.Ltd(300003) , etc; Upstream raw material enterprises Sino Biological Inc(301047) , Acrobiosystems Co.Ltd(301080) ; Downstream retail pharmacies and e-commerce platforms Lbx Pharmacy Chain Joint Stock Company(603883) , Dashenlin Pharmaceutical Group Co.Ltd(603233) , Yifeng Pharmacy Chain Co.Ltd(603939) , Yixintang Pharmaceutical Group Co.Ltd(002727) , JD health, Alibaba health, etc.
Market review: the biomedical sector fell 2.07% last week, ranking fourth in the weekly rise and fall. Since the beginning of this year, pharmaceutical biology has fallen by 13.45%, 0.62 percentage points lower than the CSI 300 index, ranking 21st in all SW primary industries.
In terms of subdivided industries, the pharmaceutical and biological subdivided sectors rose less and fell more last week, with chemical APIs rising the most, up 2.08%; Chemicals showed the weakest performance, down 3.43%. Since the beginning of this year, the performance of chemical API and pharmaceutical business has been the best, with 1.44% and – 5.10% respectively since the beginning of the year; Medical services was the weakest performing sub industry, down 19.52%. Medical services (- 19.52%), biological products (- 15.61%) and traditional Chinese medicine (- 13.92%) underperformed the pharmaceutical and biological (SW) industry index.
From the performance of individual stocks, the top five stocks that rose last week were: Changjiangrunfa Health Industry Co.Ltd(002435) (61.11%), Ningbo Menovo Pharmaceutical Co.Ltd(603538) (46.55%), China Meheco Group Co.Ltd(600056) (41.71%), Pku Healthcare Corp.Ltd(000788) (34.78%) and Guangzhou Wondfo Biotech Co.Ltd(300482) (27.09%). The top five stocks with declines are: Xi’An International Medical Investment Company Limited(000516) (- 15.68%), ST Haiyi (- 15.03%), Honz Pharmaceutical Co.Ltd(300086) (- 13.96%), Meinian Onehealth Healthcare Holdings Co.Ltd(002044) (- 13.16%) and Xiamen Kingdomway Group Company(002626) (- 13.13%).
Valuation: the valuation decreased. As of Friday (March 11), PE (TTM) and Pb (LF) in the pharmaceutical and biological (SW) industry were 30.64 times and 3.74 times respectively.
Risk warning: medical policy risk; Lower prices than expected; Systemic risk.
