Industry perspective: the "14th five year plan" of traditional Chinese medicine and the "14th five year plan" action plan of the grass-roots traditional Chinese medicine service capacity improvement project were issued, and the prosperity of the industry continued to rise. On March 29, the general office of the State Council issued the notice on printing and distributing the development plan of traditional Chinese medicine in the 14th five year plan, which comprehensively considered the key areas of traditional Chinese medicine development such as medical treatment, scientific research, industry, education, culture and international cooperation, and put forward ten key tasks and 15 main development indicators. The 14th five year plan of traditional Chinese medicine is a medium and long-term programmatic document for the traditional Chinese medicine industry, which puts forward ten key tasks. Compared with the 13th five year plan, the task of the 14th five year plan of traditional Chinese medicine is more practical and feasible. For example, with regard to the prevention of diseases by traditional Chinese medicine, the 14th five year plan proposes to "carry out the prevention and treatment of children and adolescents' myopia, scoliosis, obesity and other appropriate traditional Chinese medicine technologies"; In terms of registration and approval, it innovatively proposed to "establish a traditional Chinese medicine registration and evaluation evidence system combining traditional Chinese medicine theory, human experience and clinical trials"; In terms of payment, it is proposed to "realize independent pricing of traditional Chinese medicine decoction pieces and traditional Chinese medicine preparations processed and used by medical institutions", and "bring qualified traditional Chinese medicine medical service items and traditional Chinese medicine into the payment scope of basic medical insurance according to procedures"; In terms of internationalization one is "one belt, one road development fund" and the other is "guiding and encouraging social capital to establish a Chinese medicine belt." The introduction of the 14th five year plan of traditional Chinese medicine will promote the development of the industry and usher in qualitative changes.
On March 30, ten ministries and commissions jointly issued the notice on printing and distributing the "14th five year plan" action plan of the grass-roots traditional Chinese medicine service capacity improvement project, which mentioned that by 2025, the grass-roots traditional Chinese medicine service network integrating prevention and health care, disease treatment and rehabilitation will be more perfect, service facilities and equipment will be more perfect, staffing will be more reasonable, management will be more standardized, and traditional Chinese medicine services covering the whole people and the whole life cycle will be provided. The specific goal is to achieve five "full coverage" of grass-roots traditional Chinese medicine by 2025: the county run traditional Chinese medicine medical institutions (hospitals, outpatient departments and clinics) will basically achieve full coverage; Full coverage of community health service centers and traditional Chinese medicine centers of township health centers; The provision of grass-roots traditional Chinese medicine services has basically achieved full coverage; The allocation of TCM talents at the grass-roots level has basically achieved full coverage; Grassroots TCM health education has achieved full coverage. The notice specifically mentioned that social forces are encouraged to organize medical institutions of traditional Chinese medicine in the county, develop rehabilitation hospitals and nursing homes (stations) with traditional Chinese medicine characteristics, and support social forces to organize medical and nursing institutions with traditional Chinese medicine characteristics. Traditional Chinese medicine medical service institutions will enter the stage of accelerated development.
Investment strategy: mainline 1: Investment Strategy: mainline 1: Investment Strategy: mainline 1: Investment Strategy: Investment Strategy: the main line 1: the coved-19 oral drug related industry chain. The Geneva patent pool (the organization for the Geneva patent pool (MPP) has successively announced that it will authorize eight Chinese pharmaceutical companies to produce pfpfizer and Merck's coved-19 specific drugs. The production of related coved-19 drugs and the performance of industry chain enterprises is expected to benefit from the investment strategy: Investment Strategy: the main line 1: coved-19 oral medicine related industry chain. The Geneva organization for the pharmaceutical patent pool (MPP) has successively announced that it will authorize eight Chinese pharmaceutical companies to produce the covid-19 specific drugs for pfpfpfpfizer and Merck. The production of related coved-19 drugs related to coved-19 drugs and the performance of industry chain companies producing and industry chain enterprises is expected to benefit. Suggestions focus: the Zhe Jiang Hua Hai Pharmaceuticalco.Ltd(600521) Zhe Jiang Hua Hai Pharmaceuticalco.Ltd(600521) , Great Chinasoft Technology Co.Ltd(002453) Shandong Jincheng Pharmaceutical Group Co.Ltd(300233) , Geli pharmaceutical and Nanjing Hicin Pharmaceutical Co.Ltd(300584) , etc. Main line 2: in the traditional Chinese medicine sector, heavy support policies continue to be implemented to enhance confidence. Brand OTC traditional Chinese medicine has independent pricing power, while other proprietary Chinese medicines have moderate centralized purchase and price reduction, and the overall valuation of the sector is cost-effective. It is suggested to pay attention to: Kpc Pharmaceuticals Inc(600422) , gushengtang, Shijiazhuang Yiling Pharmaceutical Co.Ltd(002603) . Main line 3: create Shenzhen New Industries Biomedical Engineering Co.Ltd(300832) chain. CXO maintains a high outlook and the valuation has hit the bottom. Combined with the valuation, policy and capital factors, we prefer cdmo and macromolecular CXO track. It is suggested to pay attention to: Asymchem Laboratories (Tianjin) Co.Ltd(002821) , Porton Pharma Solutions Ltd(300363) , Pharmablock Sciences (Nanjing) Inc(300725) . Main line 4: in addition to the above three main lines, there are also some other tracks with high prosperity and high barriers: including characteristic API, preparation export and nuclear medicine. It is suggested to pay attention to: Zhejiang Starry Pharmaceutical Co.Ltd(603520) , Jiangxi Fushine Pharmaceutical Co.Ltd(300497) , Zhejiang Tianyu Pharmaceutical Co.Ltd(300702) , Yantai Dongcheng Biochemicals Co.Ltd(002675) , Nanjing King-Friend Biochemical Pharmaceutical Co.Ltd(603707) , Hainan Poly Pharm.Co.Ltd(300630) , Yuanda medicine.
Industry highlights: 1) positive results were obtained in phase 3 clinical trial of first-line maintenance therapy of robraca, a PARP inhibitor of Clovis Oncology; 2) Jiangsu Hengrui Medicine Co.Ltd(600276) dry eye drops shr8028 approved for clinical use; 3) Retevmo (selpercatinib), a lilly RET inhibitor, showed long-term efficacy in the treatment of RET fusion positive non-small cell lung cancer; 4) Pharming's PI3K δ The inhibitor has reached the main end point of key clinical trials, and it is planned to submit a new drug application this year.
Market review: the A-share pharmaceutical sector fell 0.15% last week, and the Shanghai and Shenzhen 300 index rose 2.43% in the same period. The pharmaceutical industry ranked 20th among 28 industries. Last week, the H-share pharmaceutical sector rose 0.08%, the Hang Seng Composite Index rose 3.03% in the same period, and the pharmaceutical industry ranked 10th among 11 industries.
Risk tips: 1) policy risk: policies such as medical insurance fee control and drug price reduction have a great negative impact on the industry; 2) R & D risk: pharmaceutical R & D investment is large and difficult, and there is the possibility of R & D failure or slow progress; 3) Corporate risk: the company's operation does not meet expectations.
