Ping An View:
Industry view: covid-19 specific drug authorized by MPP was selected by five Chinese pharmaceutical enterprises. MPP (Geneva pharmaceutical patent pool) authorizes 27 pharmaceutical enterprises to produce Merck’s covid-19 specific drug molnupiravir, which is supplied to 105 low – and middle-income countries. Five Chinese pharmaceutical companies were selected, including Shanghai Fosun Pharmaceutical (Group) Co.Ltd(600196) , Brightgene Bio-Medical Technology Co.Ltd(688166) , Desano, Langhua pharmaceutical and Longze pharmaceutical. Among the five pharmaceutical companies, Langhua pharmaceutical authorized APIs, while the other four authorized APIs and preparations. The total population of 105 low – and middle-income countries reached 4.1 billion, accounting for 53% of the global population. This authorization will bring performance flexibility to five enterprises in the future. At present, the existing products are sold overseas, and enterprises with mature overseas channels will give priority to benefit. On the other hand, the production of covid-19 specific drugs may increase the demand for APIs and cdmo in China, which will benefit the whole covid-19 specific drugs industry chain. At the same time, this authorization will improve the accessibility of covid-19 specific drugs, so as to control the epidemic and reduce the risk of the epidemic.
Investment strategy: Main Line 1: innovation Shenzhen New Industries Biomedical Engineering Co.Ltd(300832) chain, including innovative drugs (machinery) and CXO. CDE’s new deal accelerates the evolution of China’s “new ecology” of innovation, and the industry is facing “re differentiation”. Pay attention to companies with clinical Oriented Innovation Ability and license out ability. It is suggested to pay attention to: Jiangsu Hengrui Medicine Co.Ltd(600276) , Baiji Shenzhou, Xinda biology, Corning Jerry, Shenzhen Chipscreen Biosciences Co.Ltd(688321) . In terms of CXO, we prefer cdmo and macromolecular CXO tracks by maintaining a high outlook. We suggest to pay attention to: Asymchem Laboratories (Tianjin) Co.Ltd(002821) , Porton Pharma Solutions Ltd(300363) , Pharmablock Sciences (Nanjing) Inc(300725) . Main line 2: products go to sea. The overseas market is a huge incremental market, there is a high threshold for the export of preparations, and the export of medical devices to the sea has also become a new growth driving force of the industry. It is suggested to pay attention to: Nanjing King-Friend Biochemical Pharmaceutical Co.Ltd(603707) , Hainan Poly Pharm.Co.Ltd(300630) , Shenzhen Mindray Bio-Medical Electronics Co.Ltd(300760) , etc. Main line 3: consumer healthcare. With the growth of per capita disposable income, the demand for consumer medical care continues to increase. At the same time, consumer medical products are self funded products, with independent pricing power and immunization fee control policy. It is suggested to pay attention to: Topchoice Medical Co.Inc(600763) , Aier Eye Hospital Group Co.Ltd(300015) , Yantai Zhenghai Bio-Tech Co.Ltd(300653) , etc. Main line 4: the traditional Chinese medicine sector has been in the adjustment stage for a long time, and the overall valuation is low. Enterprises with steady performance growth in the sector have high cost performance and prominent layout advantages. Moreover, the export of traditional Chinese medicine products is small and the internal circulation attribute is obvious, so it will not be disturbed by foreign policies towards China. Some traditional Chinese medicine products are more inclined to health care products with stronger consumption attributes, which can be benchmarked with some food enterprises. On this premise, we believe that the subject matter with sufficient adjustment and low valuation deserves special attention. Among them, enterprises with a larger proportion of OTC drugs in the fee control policy of immune medical insurance, better room for price increase of products and a smaller proportion of traditional Chinese medicine injections have greater flexibility. It is suggested to pay attention to: Henan Lingrui Pharmaceutical Co.Ltd(600285) , Kpc Pharmaceuticals Inc(600422) , etc. In addition to the above three main lines, there are also some other tracks with high prosperity and high barriers: including characteristic API 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) , and Yuanda medicine.
Highlights of the industry 1) Guangdong Pharmaceutical Trading Center issued the notice on the centralized procurement document of diclofenac and other drugs of Guangdong alliance; 2) MiratiTherapeutics KRASG12C inhibitor adagrasib is used for the treatment of pancreatic cancer and gastrointestinal cancer, and the disease control rate is 100%. 3) Nmpa accepts daboshu ® Application for listing of new indications for the treatment of non-small cell lung cancer combined with bevacizumab injection and chemotherapy; 4) The total remission rate of regenerant bcmaxcd3 bispecific antibody regn5458 in the treatment of recurrent / refractory multiple myeloma was 75%.
Market review: last week, the A-share pharmaceutical sector fell 7.19%, the Shanghai and Shenzhen 300 index rose 1.11% in the same period, and the pharmaceutical industry ranked 28th among 28 industries. Last week, the H-share pharmaceutical sector fell 1.63% and the Hang Seng Composite Index rose 2.14% over the same period. The pharmaceutical industry ranked 11th 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.
