Market review: last week, the A-share pharmaceutical and biological index rose 3.16%, outperforming the CSI 300 index by 2.78pp and the gem composite index by 1.31pp, ranking 10th among 28 sub industries, mainly due to the large increase in the traditional Chinese medicine sector. The H-share Hang Seng medical health index closed up 0.77%, outperforming the Hang Seng state-owned enterprise index by 0.35pp, ranking 1 / 11.
Tracking of R & D Progress of listed companies: last week, the listing application of Beijing Sl Pharmaceutical Co.Ltd(002038) polyethylene glycol recombinant human granulocyte stimulating factor injection was newly undertaken, the clinical application of Jiangsu Hengrui Medicine Co.Ltd(600276) shr-1701 injection and Zhengda Tianqing tqb2450 injection was newly undertaken, and the pollen allergen of Zhejiang Wolwo Bio-Pharmaceutical Co.Ltd(300357) is undergoing phase IV clinical treatment, Fcn-159 of Shanghai Fosun Pharmaceutical (Group) Co.Ltd(600196) and hlx07 of Fuhong Hanlin biology are in phase II clinical trials.
This week’s view: the 14th five year plan for medical equipment industry is released, and domestic substitution is expected to accelerate
Last week, the Ministry of industry and information technology and other ten departments jointly issued the “14th five year plan” for the development of medical equipment industry. The plan puts forward five key tasks during the 14th Five Year Plan period around seven key development areas: diagnostic and testing equipment, treatment equipment, monitoring and life support equipment, traditional Chinese medicine diagnosis and treatment equipment, maternal and child health equipment, health care and rehabilitation equipment and active implant intervention equipment. At present, the localization rate of China’s medical equipment industry is still at a low level. We believe that under the policy support, the domestic substitution of medical equipment and scientific instruments industry is expected to accelerate the development and usher in an unprecedented favorable admission to the hospital. In addition, domestic equipment continues to break the monopoly of foreign capital in the high-end field. We recommend leading enterprises of medical equipment Shenzhen Mindray Bio-Medical Electronics Co.Ltd(300760) , Shinva Medical Instrument Co.Ltd(600587) and minimally invasive medical (H). It is suggested to pay attention to leading segments of the track with good competition pattern and low localization rate, such as Qingdao Novelbeam Technology Co.Ltd(688677) , Sonoscape Medical Corp(300633) , Aohua endoscope, minimally invasive Siasun Robot&Automation Co.Ltd(300024) – B (H), as well as high-quality enterprises of rehabilitation equipment Xiangyumedicalco.Ltd(688626) , Nanjing Vishee Medical Technology Co.Ltd(688580) .
Investment strategy in 2022: know the constant changes, keep the integrity 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) are recommended; In the field of equipment and Life Sciences, Shenzhen Mindray Bio-Medical Electronics Co.Ltd(300760) , minimally invasive medicine (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.
