Pharmaceutical industry: it rose slightly in March, and the undervalued sector performed better. The pharmaceutical industry rose slightly in March 2022: Shenwan pharmaceutical rose 0.87%, outperforming the CSI 300 index by 8.71%, ranking top among all Shenwan industries. Among the sub sections, pharmaceutical business (+ 11.28%) and traditional Chinese medicine (+ 4.75%) led the rise, with medical services up 1.10%, chemical pharmaceuticals up 0.66%, biological products down 0.73% and medical devices down 3.75%; The undervalued commercial and traditional Chinese medicine sectors performed better. The market pays high attention to epidemic related detection, small molecule drugs, traditional Chinese medicine, vaccines and other sectors.
Prospect of the first quarterly report of the pharmaceutical industry: vaccines, testing and CXO continue to have a high boom. The performance of the pharmaceutical industry in the first quarter continued the main line of covid-19 epidemic. We expect that the vaccine and covid-19 testing business will maintain a high-profile growth; At the same time, the CXO industry will also benefit from the transfer of the global industrial chain and continue to grow rapidly. The cdmo business related to covid-19 drugs will also bring greater performance increment to relevant companies.
The 14th five year plan of traditional Chinese medicine was promulgated, and covid-19 epidemic reshaped the cognition of traditional Chinese medicine. The five-year plan for traditional Chinese medicine was issued in the name of the general office of the State Council for the first time. The setting of various indicators fully reflects the grand goal of revitalizing the development of traditional Chinese medicine. The traditional Chinese medicine industry is in a stage of revitalization and development. As a kind of drugs and services with Chinese characteristics, traditional Chinese medicine has been supported by national policies. Especially in the past 21 years, many national high-level departments such as the State Council and the medical insurance bureau have issued a number of practical policies to encourage the development of traditional Chinese medicine, clarifying the attitude of all national departments to encourage and support the development of traditional Chinese medicine as a traditional Chinese characteristic. At the same time, covid-19 epidemic reshapes the cognition of traditional Chinese medicine, and inheriting and carrying forward traditional Chinese medicine has become the main theme.
An excellent biotech company with strong R & D and commercialization ability and abundant cash in hand. With the approval and listing of heavy innovative drugs, many biotech companies have entered the first year of commercialization, and kangfang biology, nuocheng Jianhua and Rongchang biology have completed good commercial sales; Xinda biology and Baiji Shenzhou PD-1 have also achieved rapid growth. The sales capacity and revenue growth of biotech have become the focus of the market. In addition, from the perspective of risk, we recommend focusing on high-quality biotech companies with abundant cash on hand.
Focus on the main line of covid-19 and high-quality stocks with reasonable valuation. Covid-19 epidemic is still the biggest main line in the pharmaceutical sector. It is suggested to pay attention to the detection, small molecule drugs, traditional Chinese medicine, vaccines and other sectors related to the epidemic. In addition, the early correction range of some high-quality stocks is large, and the valuation has been quite attractive. It is suggested to make a positive layout. In April, the portfolio consisted of a shares: Jiangsu Hengrui Medicine Co.Ltd(600276) , Shenzhen Mindray Bio-Medical Electronics Co.Ltd(300760) , Zhejiang Orient Gene Biotech Co.Ltd(688298) , Truking Technology Limited(300358) , Apeloa Pharmaceutical Co.Ltd(000739) , Shijiazhuang Yiling Pharmaceutical Co.Ltd(002603) , Apt Medical Inc(688617) ; H shares: Weigao shares, Jinxin reproduction, kangnoah, xianruida medical.
Risk tips: the risk of R & D failure, the risk of R & D progress falling short of expectations, the risk of regulatory policy adjustment, the risk of medical insurance price falling beyond expectations, and the risk of commercialization progress falling short of expectations
