This week (from January 17, 2022 to January 21, 2021) and year to date, the biomedical index rose by – 7.19% and – 8.70% respectively, and the excess returns relative to the Shanghai stock index were – 8.30% and – 5.44% respectively; This week, the share prices of medical devices, biological products and chemical drugs were relatively strong, while the share prices of Commerce, traditional Chinese medicine and medical services were relatively weak; This week, the increase was among the top Jinghua Pharmaceutical Group Co.Ltd(002349) (+ 36.71%), Thalys Medical Technology Group Corporation(603716) (+ 23.32%), Xinxiang Tuoxin Pharmaceutical Co.Ltd(301089) (+ 23.13%), and the decrease was among the top Hangzhou Biotest Biotech Co.Ltd(688767) (- 46.84%), Zhejiang Orient Gene Biotech Co.Ltd(688298) (- 41.71%), Beijing Hotgen Biotech Co.Ltd(688068) (- 40.09%). Performance characteristics of rise and fall: affected by the change of attitude towards the epidemic in the UK and the United States, the Lancet’s statement that the epidemic is coming to an end and coexisting with drugs, the relevant targets of covid-19 detection plummeted; Affected by the bidding policy of Guangdong, growth hormone and blood products decreased significantly; Small market value stocks preferred by hot money gradually return to value.
Forecast and review of CXO annual report: the demand remains unchanged and the boom remains unchanged: as of January 21, 2022, a total of 8 enterprises have issued annual performance forecasts, which are slightly higher than the market expectations, of which Joinn Laboratories (China) Co.Ltd(603127) , Porton Pharma Solutions Ltd(300363) performance exceeds the market expectations, and Wuxi Apptec Co.Ltd(603259) , Hangzhou Tigermed Consulting Co.Ltd(300347) , Pharmaron Beijing Co.Ltd(300759) performance slightly exceeds the market expectations. From the beginning of 2020 to the first three quarters of 2021, the stock price of CXO sector companies has been going well. One of the reasons for the recent stock price fluctuation is the market’s concern about the US sanctions on Chinese biotechnology stocks. We believe that China’s leading CXO company has cooperated with the leading pharmaceutical enterprises in the United States for many years and has undertaken a large number of small molecule covid-19 drug orders. If the American pharmaceutical enterprises replace CXO service providers, they need to pay high costs and bear high risks. Therefore, the possibility of China’s CXO leading being sanctioned by the United States is not high.
Fuhong Hanlin hlx208 was approved for clinical use and Jiangsu Hengrui Medicine Co.Ltd(600276) PD-L1 monoclonal antibody was applied for listing: on January 18, Shanghai Fosun Pharmaceutical (Group) Co.Ltd(600196) announced that its holding subsidiary Fuhong Hanlin received nmpa’s approval for the development of clinical trials targeting human BRAF protein V600E mutation small molecule inhibitor hlx208 alone or in combination for the treatment of advanced solid tumors; On January 19, the official website of CDE showed that the application for listing of PD-L1 monoclonal antibody adebailimab of Jiangsu Hengrui Medicine Co.Ltd(600276) was accepted. This is the fifth domestic PD-L1 monoclonal antibody declared for listing.
Specific allocation ideas: 1) field of traditional Chinese medicine: Zhejiang Jolly Pharmaceutical Co.Ltd(300181) , Hubei Jumpcan Pharmaceutical Co.Ltd(600566) , Dong-E-E-Jiao Co.Ltd(000423) , Zhangzhou Pientzehuang Pharmaceutical Co.Ltd(600436) ; 2) Generic CXO field: focus on Baicheng medicine, Beijing Sun-Novo Pharmaceutical Research Co.Ltd(688621) etc; 3) Innovative drugs and industrial chain: Zhejiang Jiuzhou Pharmaceutical Co.Ltd(603456) , Wuxi Apptec Co.Ltd(603259) , Asymchem Laboratories (Tianjin) Co.Ltd(002821) etc; 4) Biotech innovative drugs: kangfang biology, Xinda biology, Yasheng medicine, etc; 5) API field: Jiangxi Synergy Pharmaceutical Co.Ltd(300636) , Apeloa Pharmaceutical Co.Ltd(000739) , Zhejiang Starry Pharmaceutical Co.Ltd(603520) , Zhejiang Tianyu Pharmaceutical Co.Ltd(300702) etc; 6) Vaccine field: Chongqing Zhifei Biological Products Co.Ltd(300122) , Shenzhen Kangtai Biological Products Co.Ltd(300601) , Beijing Wantai Biological Pharmacy Enterprise Co.Ltd(603392) etc; 7) Growth hormone field: Changchun High And New Technology Industries (Group) Inc(000661) , Anhui Anke Biotechnology (Group)Co.Ltd(300009) etc; Medical service field: Topchoice Medical Co.Inc(600763) , Aier Eye Hospital Group Co.Ltd(300015) , Guizhou Xinbang Pharmaceutical Co.Ltd(002390) etc; 8) Blood products: Boya Bio-Pharmaceutical Group Co.Ltd(300294) , Beijing Tiantan Biological Products Corporation Limited(600161) ; 9) Medical and aesthetic fields: Imeik Technology Development Co.Ltd(300896) , Bloomage Biotechnology Corporation Limited(688363) , Huadong Medicine Co.Ltd(000963) , Shanghai Haohai Biological Technology Co.Ltd(688366) etc; 10) Medical device field: Jiangsu Yuyue Medical Equipment And Supply Co.Ltd(002223) , Qingdao Novelbeam Technology Co.Ltd(688677) , Shenzhen Mindray Bio-Medical Electronics Co.Ltd(300760) etc.
Risk warning: R & D progress may be less than expected; The price reduction of drugs exceeded expectations; The medical insurance policy was further tightened.
