Market review: this week, the Shenwan pharmaceutical and biological sector index rose 0.5%, outperforming the CSI 300 index by 2.7%. The pharmaceutical sector ranked eighth in the Shenwan industry classification. Among them, CXO outsourcing service company had high performance growth in the first quarter, and biological products performed well, up 4.5%; The top five increases in medicine were Shanxi Panlong Pharmaceutical Group Limited By Share Ltd(002864) (+ 61.1%), Chongqing Pharscin Pharmaceutical Co.Ltd(002907) (+ 33.4%), Guilin Layn Natural Ingredients Corp(002166) (+ 32.6%), Zhejiang Yatai Pharmaceutical Co.Ltd(002370) (+ 31.3%), Jinghua Pharmaceutical Group Co.Ltd(002349) (+ 30.9%).
Industry policies and trends: 1) the new version of nucleic acid testing guidelines was published, putting forward new testing requirements: the state clearly requires that nucleic acid testing should not be flooded. The goal should be clear and targeted, and “one size fits all” should not be pursued; 2) National Medical Insurance Bureau: timely adjust covid-19 treatment drugs included in the payment scope of medical insurance; 3) The results of the proposed selection of “eight provinces and two districts” with volume procurement were announced, with a maximum decrease of 98%; 4) Yaoming bio enabled customers developed three covid-19 vaccines: by the end of 21 years, the group had signed nine vaccine contracts, including a cooperative production agreement with one of the global vaccine giants, with an initial term of 20 years and a total contract value of more than US $3 billion; 5) Walvax Biotechnology Co.Ltd(300142) : bivalent HPV vaccine has been approved and is expected to go on sale in the second half of the year. 6) Lbx Pharmacy Chain Joint Stock Company(603883) 1637 billion to acquire 71.96% equity of Huairen dahealth, the most influential retail chain drugstore in Western Hunan.
The epidemic situation continues to recur, and the research and development of covid-19 drug and variant covid-19 vaccine are progressing steadily. Covid-19 drugs: small molecule oral drugs are expected to be used in broad-spectrum anti covid-19 virus treatment all over the world. Higher efficiency and oral preparations are more conducive to patients, which is expected to reduce the global pandemic to an ordinary infectious disease. At present, there are many products with multiple mechanisms outside China in the process of EUA and research, which is expected to be fully used in epidemic prevention and control in 2022; Covid-19 vaccine: on March 19, relevant leaders of the scientific research team said that China is promoting the research and development speed of vaccine against Omicron variant. So far, positive progress has been made in the research and development of vaccine against Omicron variant unit price and multivalent. Those with rapid progress have completed preclinical research and are submitting application materials for clinical trials to the State Drug Administration. For example, the inactivated vaccine has carried out the research and development of single price and multi price, has basically completed the preclinical research, and has been verified in production; The recombinant protein vaccine has carried out the research and development of alpha + beta + delta + Omicron tetravalent vaccine, and is applying for overseas clinical trials; Adenovirus vector vaccine has been optimized and prepared, and preclinical research is being carried out; MRNA vaccine is also actively promoting preclinical research. Overall, considering the complexity of epidemic prevention and control, we expect that covid-19 epidemic will not be completely eliminated in the short term. The new vaccines under development in China are expected to be listed in the future, and obtain a certain market share in the future enhanced vaccination.
Investment strategy: since the Omicron mutant is mainly asymptomatic infection and spreads very fast, the situation of covid-19 epidemic prevention and control in China is grim. Promoting the R & D and listing of mutant covid-19 vaccine and covid-19 specific drugs has been listed as a key task by the state. At present, the sectors related to epidemic prevention and control are still one of the hottest investment fields in medicine, We believe that the upgraded covid-19 vaccine and domestic Chinese / Western anti-covid-19 drugs are the main investment strategies at present: 1) the research and development of the upgraded covid-19 vaccine has attracted attention: at present, the covid-19 vaccine of the original strain is still being promoted all over the world. In the face of the great discount of the immune effect of the Omicron mutant strain, it is urgent to develop a more effective vaccine against the epidemic strain, Many vaccine enterprises in China have developed corresponding upgraded vaccine products for different epidemic strains, including recombinant protein, inactivation, mRNA and other technical routes, including univalent or multivalent products. Focus on: Chongqing Zhifei Biological Products Co.Ltd(300122) , Cansino Biologics Inc(688185) , Shenzhen Kangtai Biological Products Co.Ltd(300601) and Walvax Biotechnology Co.Ltd(300142) etc; 2) Covid-19 oral drug industry chain deserves continuous attention: 1. Pfizer covid-19 small molecule industry chain: MPP authorized enterprises focus on: Zhe Jiang Hua Hai Pharmaceuticalco.Ltd(600521) , Zhejiang Jiuzhou Pharmaceutical Co.Ltd(603456) and Apeloa Pharmaceutical Co.Ltd(000739) etc; Cdmo enterprises focus on: Porton Pharma Solutions Ltd(300363) , Asymchem Laboratories (Tianjin) Co.Ltd(002821) , Wuxi Apptec Co.Ltd(603259) , etc; Focus on intermediate weight points: Shandong Jincheng Pharmaceutical Group Co.Ltd(300233) , Zhejiang Starry Pharmaceutical Co.Ltd(603520) , Ningbo Menovo Pharmaceutical Co.Ltd(603538) , etc; 2. Domestic covid-19 small molecule and industrial chain: azvudine (real biology is expected to uncover the blindness of phase III data in April) supply chain focuses on: Zhejiang Ausun Pharmaceutical Co.Ltd(603229) and Xinxiang Tuoxin Pharmaceutical Co.Ltd(301089) etc; Vv116 (the third phase of global multi center has been launched, and the production is expected to be reported within 22 years) focuses on: Shanghai Junshi Biosciences Co.Ltd(688180) ; Other 3CL target enterprises are pre clinical; 3. Traditional Chinese medicine covid-19 drugs: “integration of Chinese and Western medicine” will become the main way of covid-19 treatment in China. The prevention and treatment of covid-19 by traditional Chinese medicine has formed a consensus in Chinese society. The “three drugs and three parties” focus on: Shijiazhuang Yiling Pharmaceutical Co.Ltd(002603) and Shandong Buchang Pharmaceuticals Co.Ltd(603858) etc; 3) Continue to be optimistic about the traditional Chinese medicine sector: the convening of the “two sessions” is expected to accelerate the implementation of favorable policies for traditional Chinese medicine, and the boom market is expected to run through 2022. We believe that traditional Chinese medicine will continue to be catalyzed by favorable policies, and the support for traditional Chinese medicine will gradually be reflected in the growth rate of the company’s revenue and profit. Underestimation + strong policy support + underestimation + strong policy support is an important foundation for the continued upward trend of Chinese herbal medicine in the future, with a focus on innovation, brand OTC, formula particles, anti covid-19-19-19 Chinese medicine and other directions related to the direction of Chinese herbal medicine, brand OTC, brand OTC, formula particles, anti-19-19-19-19. Related labels: Hongda Xingye Co.Ltd(002002) Hongda Xingye Co.Ltd(002002) Poten Environment Group Co.Ltd(603603) Poten Environment Group Co.Ltd(603603) 603 \ \wait. 4) Annual report and first quarterly report: we are about to enter the intensive disclosure period of annual report and first quarterly report. According to the first quarter performance outlook released by us: focus on biological products: Chongqing Zhifei Biological Products Co.Ltd(300122) , Shenzhen Kangtai Biological Products Co.Ltd(300601) , Beijing Wantai Biological Pharmacy Enterprise Co.Ltd(603392) and Changchun High And New Technology Industries (Group) Inc(000661) ; Key focus of devices: Shanghai Kindly Enterprises Development Group Co.Ltd(603987) , Qingdao Novelbeam Technology Co.Ltd(688677) etc; CXO focuses on: Wuxi Apptec Co.Ltd(603259) , Porton Pharma Solutions Ltd(300363) , Baicheng medicine, etc; Drug concerns: Chongqing Taiji Industry (Group) Co.Ltd(600129) , Kpc Pharmaceuticals Inc(600422) , Hunan Jiudian Pharmaceutical Co.Ltd(300705) and Shenyang Xingqi Pharmaceutical Co.Ltd(300573) etc.
Portfolio this week: it is recommended to focus on Chongqing Zhifei Biological Products Co.Ltd(300122) , Shenzhen Kangtai Biological Products Co.Ltd(300601) , Porton Pharma Solutions Ltd(300363) , Shijiazhuang Yiling Pharmaceutical Co.Ltd(002603) , Kpc Pharmaceuticals Inc(600422) , Apeloa Pharmaceutical Co.Ltd(000739) , etc.
March portfolio: it is recommended to focus on Wuxi Apptec Co.Ltd(603259) , Chongqing Taiji Industry (Group) Co.Ltd(600129) , Tofflon Science And Technology Group Co.Ltd(300171) , Hunan Jiudian Pharmaceutical Co.Ltd(300705) , Shanghai Kindly Enterprises Development Group Co.Ltd(603987) and Chongqing Zhifei Biological Products Co.Ltd(300122) .
Risk tip: the industry demand is less than expected; The performance of listed companies is less than expected; Market competition intensifies risks.
