Ping An View:
Industry view: Guangdong alliance concentrated on the acquisition and implementation of Chinese patent medicines, and paid attention to the varieties whose price drop was higher than expected. On April 8, 2022, Guangdong Pharmaceutical Trading Center issued the notice on publicizing the proposed winning / alternative results of centralized procurement of Chinese patent medicines such as Qingkailing of Guangdong alliance. The Guangdong alliance includes six provinces (regions) of Guangdong, Shanxi, Henan, Hainan, Ningxia and Qinghai, of which four provinces except Guangdong and Qinghai are members of the 19 provinces of Hubei Province. There are 663 products and 313 enterprises that can be quoted in this centralized purchase. Finally, 361 products of 174 enterprises are proposed to be selected / alternative, of which 30 exclusive products are proposed to be selected / alternative. Compared with the highest valid bid price, the price drop of the proposed winning / alternative products is about 64% and 33% respectively, of which the decline of the exclusive products is less than that of the non exclusive products, and the price drop of the proposed winning / alternative products of the exclusive products is about 20% and 15% respectively. If compared with the lowest price in the alliance area, the proposed alternative price of exclusive products will decrease less. For example, the proposed alternative price of Lianhua Qingwen granule ( Shijiazhuang Yiling Pharmaceutical Co.Ltd(002603) ), Zishen Yutai pill ( Guangzhou Baiyunshan Pharmaceutical Holdings Company Limited(600332) ) and other varieties will decrease by only about 1%. We believe that the value of this centralized collection of innovative traditional Chinese medicine is prominent and is expected to be further increased. The new registration classification is clearly guided by clinical value, and the “Three Combinations” evaluation system clarifies the ideas of R & D, while medical insurance supports the large amount of innovative drugs. It is suggested to pay attention to Shijiazhuang Yiling Pharmaceutical Co.Ltd(002603) , Guiyang Xintian Pharmaceutical Co.Ltd(002873) , Jiangsu Kanion Pharmaceutical Co.Ltd(600557) , etc.
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) . 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) FDA Approves Geely yescarta ® For the treatment of second-line large B-cell lymphoma; 2) FGFR inhibitors introduced by XinDa were approved in Chinese mainland to treat cholangiocarcinoma. 3) The European drug administration has accepted the listing application of baizean, Baiji, for the treatment of esophageal squamous cell carcinoma and non-small cell lung cancer; 4) The phase 2B clinical results of antisense oligonucleotide (ASO) therapy jointly developed by AstraZeneca and Ionis are positive.
Market review: last week, the A-share pharmaceutical sector fell 3.33%, the CSI 300 index fell 1.06% in the same period, and the pharmaceutical industry ranked 21st among 28 industries. Last week, the H-share pharmaceutical sector rose 0.37%, while the Hang Seng Composite Index fell 0.69% in the same period. The pharmaceutical industry ranked seventh 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.
