Industry comments
Trend of medical and health sector: from March 7 to March 13, 2022, A-share medical and health sector fell by 2.6%, outperforming the Shanghai and Shenzhen 300 index by 1.6%, of which 141 stocks in medical and health sector rose and 296 fell; In terms of Hong Kong stocks, the Hang Seng health care index fell 10.1%, outperforming the Hang Seng Index by 3.9%, of which 40 stocks in the medical and health sector of Hong Kong stocks rose and 159 fell; In terms of U.S. stocks, the S & P 500 medical index fell 2.8%, outperforming the S & P 500 index by 0.1%, of which 542 stocks in the pharmaceutical and health sector rose and 739 fell.
Performance of subdivided sectors: in terms of subdivided sectors, the growth of innovative drugs, medical devices, biological products, APIs, medical services, CXO, medical beauty, traditional Chinese medicine and drugstores were – 3.0%, – 0.1%, – 3.1%, 2.1%, – 3.4%, – 2.4%, – 5.7%, – 2.3% and – 0.1% respectively. The largest increase was in APIs, followed by the drugstore industry.
Progress in innovative drugs. This week, no innovative drugs were approved in China, the United States and Europe, and two innovative drugs in Japan were approved. As of March 13, 2022, no innovative drugs have been approved in China, the United States and Europe, and two innovative drugs have been approved in Japan.
Investment and financing: according to the database, there were about 79 global investment and financing events this week, including 36 in China and 43 overseas. Overall, this week, China mainly focused on early-stage investment, while overseas investment mainly focused on post listing and later stage investment. Investment and financing in the fields of innovative drugs, medical devices, precision medicine and drug discovery are hot.
China approves covid-19 antigen self-test products. In March 11th, the State Council, in response to the comprehensive prevention and control mechanism of New Coronavirus pneumonia, decided to add antigen tests on the basis of nucleic acid detection. On March 12, the State Food and Drug Administration issued a notice approving the change of covid-19 antigen product self-test application of Nanjing Nanjing Vazyme Biotech Co.Ltd(688105) , Beijing jinwofu, Shenzhen Huada Yinyuan, Guangzhou Guangzhou Wondfo Biotech Co.Ltd(300482) , Beijing huaketai biology, and five covid-19 antigen self-test products were approved for listing.
Investment advice
We believe that with the policy support for product innovation and the improvement of industry concentration, some leading companies of medical device segments are expected to become competitive enterprises worldwide in the future. It is suggested to pay attention to device companies with perfect sales and R & D pipeline layout.
The medical institutions under the service sector companies may be disturbed by the epidemic to a certain extent in the short term, but the service leading enterprises with long-term value still deserve attention.
At present, the policies of growth hormone industry are gradually implemented, and it is suggested to pay attention to the performance growth and valuation repair opportunities of subsequent sectors; Vaccine companies that pay attention to the quotation of centralized collection of follow-up blood products by Guangdong alliance and conventional heavy-duty class II vaccine products with excellent performance growth.
We are optimistic about the main line of the epidemic and the advanced manufacturing direction of medicine, including detection and killing, vaccines and specific drugs, their R & D industrial chain, upstream supply chain, etc.
Risk tips
Risk of centralized purchase exceeding expectations; Omission of investment and financing data events; Policy supervision risk, etc.
