Key investment points:
Market review:
Last week, the overall performance of A-Shares was weak. The Shanghai index fell 1.19%, the Shenzhen Component Index fell 2.08% and the gem index fell 2.80%. Coal (+ 5.84%), agriculture, forestry, animal husbandry and fishery (+ 3.93%) and real estate (+ 3.84%) led the rise in shenwanyi sub industry; Losses were led by computers (- 4.10%), power equipment (- 4.05%) and building materials (- 3.72%).
During the reporting period, the pharmaceutical and biological sector outperformed the CSI 300 index by 2.68% and the gem index by 3.33%. The sub sectors of the pharmaceutical industry were divided, among which the pharmaceutical service sector led the rise, up 4.49%; The medical device sector led the decline, down 3.16%.
Industry highlights of the week:
1, the State Council joint defense joint control issued the “regional New Coronavirus nucleic acid screening organization implementation guide” Third Edition;
2, the office of the National Health Insurance Bureau issued a notice on strengthening the price management of New Coronavirus antigen detection.
3. The medical insurance bureau temporarily included the covid-19 virus antigen detection reagent into the medical insurance, and adjusted the covid-19 treatment drugs included in the payment scope of the medical insurance
Industry Week view:
The recent covid-19 pneumonia epidemic is still fluctuating in all parts of China, and the development trend is uncertain. In order to keep epidemic prevention and control work well and achieve “early detection, early isolation, early diagnosis and early treatment”, this week, the national Wei Jian Committee and the National Health Insurance Bureau issued the third edition of the guidelines for screening of New Coronavirus nucleic acid detection organizations in the region, strengthened the price management of New Coronavirus antigen detection, and temporarily incorporated COVID-19 virus antigen reagents into medical insurance and other related notifications. Under the background of repeated epidemics in China, the state attaches great importance to covid-19 from detection to isolation to treatment, and the implementation of supporting medical insurance policies, we believe that the listed companies related to covid-19 pneumonia industrial chain benefit, including 1) IVD industrial chain (manufacturers whose antigen detection products have been approved for listing in China, manufacturers whose antigen detection products have been approved for listing abroad (it is expected that China will obtain certificates in the future) and IVD upstream raw material enterprises) 2) Covid-19 specific drug industry chain (covid-19 specific drug R & D enterprises, covid-19 specific drug commercialization enterprises, covid-19 specific drug upstream enterprises, covid-19 specific drug R & D outsourcing enterprises and enterprises that have obtained the imitation right of naimatavir, one of the components of Pfizer covid-19 oral drug paxlovid), 3) covid-19 traditional Chinese medicine industry chain related to the treatment of pneumonia. At the same time, we should also pay attention to the risks of centralized purchase and price reduction, deterioration of competition pattern, and failure of R & D progress to meet expectations.
We recommend focusing on:
In the long run, under the background of medical insurance fee control and China Meheco Group Co.Ltd(600056) industrial upgrading, the pharmaceutical sector is dominated by structural investment opportunities. It is suggested to pay attention to: 1) the CXO sector is not affected by policies and has a high outlook. The current core problem is to kill the valuation, and there is no significant change in the fundamentals. 2) Policy immunization + undervalued value enables the OTC segment of traditional Chinese medicine to have performance growth momentum and valuation cost performance.
Risk factors: the risk of exceeding expectations in the implementation of policies such as cost control and volume procurement, and the risk of drug R & D and listing failure.
