One week’s view: the policy will be further overweight, and the investment opportunity of traditional Chinese medicine innovative drugs will be optimistic in 2022
On December 30, the national medical insurance bureau and others jointly issued the guiding opinions on medical insurance supporting the inheritance, innovation and development of traditional Chinese medicine, which was fully beneficial to the traditional Chinese medicine sector. The guidance improves the political position supporting the innovative development of traditional Chinese medicine, and shows the determination of the state to support the inheritance, innovation and development of traditional Chinese medicine. According to the guidance, inheritance and innovation with clinical value are the main theme of development. The new registration classification of traditional Chinese Medicine released on September 28, 2020 also emphasizes the development concept of paying equal attention to inheritance and innovation, keeping the foundation and innovating for development. From the actual situation, the approval of new drugs has effectively followed the principle of paying attention to clinical value and meeting unmet clinical needs. Up to now, in 2021, the State Food and drug administration has approved a total of 12 new traditional Chinese medicine drugs for listing, which has become the most approved new traditional Chinese Medicine drugs in recent five years. The reform of the review and approval system of traditional Chinese medicine has achieved initial results, and the approval and listing of innovative traditional Chinese medicine drugs has been significantly accelerated.
One week’s view: OTC of brand traditional Chinese medicine has the advantages of determining performance growth and valuation
In terms of policy, traditional Chinese medicine has been supported by national policies and has high price maintenance ability. In terms of fundamentals, most brand OTC enterprises of traditional Chinese medicine have maintained a stable growth of revenue of 10% – 20% in the past few years, and are expected to usher in the second growth curve through category expansion and marketing channel reform. In terms of performance, in 2021, many brand OTC enterprises of traditional Chinese medicine formulated equity incentive plans, with great certainty of performance growth. In terms of valuation, according to Wande’s unanimous expectation, as of December 31, 2021, the 2022epe of traditional Chinese medicine sector was 27.3 times, lower than 29.7 times of the overall pharmaceutical and biological industry, which has certain valuation advantages. Overall, the OTC industry of brand traditional Chinese medicine is supported by policies and has the advantages of determining performance growth and valuation.
The 14th five year plan for the development of medical equipment industry was issued, and the medical device sector benefited fully
On December 28, the Ministry of industry and information technology and other 10 ministries and commissions jointly issued the “14th five year plan” for the development of medical equipment industry (hereinafter referred to as the “plan”). The plan puts forward the promotion idea of “7556”, that is, around 7 key areas, deploy 5 key tasks, implement 5 special actions and take 6 safeguard measures to promote the realization of the development goal of medical equipment industry. The plan aims to better meet the people’s growing medical and health needs, focusing on clinical needs and health security. For the first time, it puts forward seven key areas for the development of medical equipment, involving disease prevention, diagnosis, treatment, health promotion, elderly care and other aspects, and puts forward the concept of “5g + medical health” and new development models such as home community and the integration of medical care and health care. At the same time, considering the equipment emergency needs of major infectious diseases and other emergencies, it is clear to develop medical rescue equipment. On the whole, the release of the plan constitutes a comprehensive and significant positive impact on the medical device sector.
Recommended and beneficial objects
Recommended targets: Henan Lingrui Pharmaceutical Co.Ltd(600285) , Tasly Pharmaceutical Group Co.Ltd(600535) , Xiangyumedicalco.Ltd(688626) , Pharmablock Sciences (Nanjing) Inc(300725) , Shanghai Haoyuan Chemexpress Co.Ltd(688131) , Apeloa Pharmaceutical Co.Ltd(000739) , Sino Biological Inc(301047) (the above ranking is not in order).
Beneficiary objects: Youcare Pharmaceutical Group Co.Ltd(688658) , Shijiazhuang Yiling Pharmaceutical Co.Ltd(002603) , Jiangsu Kanion Pharmaceutical Co.Ltd(600557) , Guiyang Xintian Pharmaceutical Co.Ltd(002873) , Chinese traditional medicine, Tianjin Chase Sun Pharmaceutical Co.Ltd(300026) , gushengtang, Guangzhou Baiyunshan Pharmaceutical Holdings Company Limited(600332) , Zhejiang Shouxiangu Pharmaceutical Co.Ltd(603896) , Yunnan Baiyao Group Co.Ltd(000538) , China Resources Sanjiu Medical & Pharmaceutical Co.Ltd(000999) , Shenzhen Mindray Bio-Medical Electronics Co.Ltd(300760) , Lianying medical treatment, Beijing Wandong Medical Technology Co.Ltd(600055) , Autobio Diagnostics Co.Ltd(603658) , Guangzhou Wondfo Biotech Co.Ltd(300482) , minimally invasive Siasun Robot&Automation Co.Ltd(300024) , Jiangsu Yuyue Medical Equipment And Supply Co.Ltd(002223) , Shenzhen Lifotronic Technology Co.Ltd(688389) , minimally invasive medical treatment, Lepu Medical Technology (Beijing) Co.Ltd(300003) , Shanghai Kindly Enterprises Development Group Co.Ltd(603987) medical equipment, Shanghai Microport Endovascular Medtech (Group) Co.Ltd(688016) , Xinwei medical treatment, Kontour(Xi’An) Medical Technology Co.Ltd(688314) .
Risk tip: the black swan incident and the deterioration of the epidemic situation in the industry affect production and operation.
