Peace of mind:
Industry opinion: The pharmaceutical sector has experienced a short-term correction, and the valuation of the sector has become more cost-effective.The pharmaceutical sector fell 7.34% last week, and the same periodCSI 300 The index fell 4.19%. Affected by the epidemic, the market has fluctuated greatly recently, and the pharmaceutical sector has experienced a relatively large correction. As of April 22, 2022, the valuation of the pharmaceutical sector was 25.20 times (TTM, excluding negative values by the overall method), and the valuation premium for all A shares (excluding financials) was 36.97%, which was lower than the historical average of 56.53%. We believe that the valuation of the pharmaceutical sector is cost-effective, and we recommend paying attention.In the short term we recommend paying attentionperformanceCompanies with strong growth certainty and significant improvement in performance compared to the previous month.In the long run, we are optimistic about the CXO sector, which is highly prosperous and has a high valuation and price/performance ratio.new industrychain etc.
Investment strategy: Main line 1: The new crown oral drug related industry chain, the Geneva Pharmaceutical Patent Pool Organization (MPP) has successively announced the authorization of 8 domestic pharmaceutical companies to producePfizerWith Merck’s new crown special drug, the performance of related new crown drug production and industry chain companies is expected to benefit. It is recommended to pay attention to:Huahai Pharmaceutical、Pro PharmaFosun Pharmaceutical,Jiuzhou Pharmaceutical、Aleigh、Porton shares、WuXi AppTec、Huasoft Technology、Jincheng MedicineAscletis Pharmaceuticals andHaichen PharmaceuticalWait. Main line 2: In the traditional Chinese medicine sector, heavy support policies continue, and the implementation of policies improves confidence. Brand OTC traditional Chinese medicineWith independent pricing power, the price reduction of other proprietary Chinese medicine centralized procurement is moderate, and the overall valuation of the sector is cost-effective. It is recommended to pay attention to:Kun Pharmaceutical Group、Koseidou、Yiling Pharmaceutical.Main line three: creationnew industrychain, CXO maintains a high degree of prosperity and its valuation has bottomed out. Combining valuation, policy and funding factors, we are more inclined to the CDMO and macromolecule CXO track. It is recommended to pay attention to:
Aleigh、Porton shares、Yaoshi Technology. Main line 4: In addition to the above three main lines, there are also some other high-prosperity and high-barrier tracks: including specialty APIs, preparation exports, and nuclear medicine. Suggested attention:Stellite、Fuxiang Pharmaceutical、Tianyu shares、Dongcheng Pharmaceutical、Jianyou shares、Pulley Pharmaceuticals、Grand Medicine。
Highlights of the industry: 1) China Cell SCT510 bevacizumab injection (VEGF) marketing application was accepted by the State Food and Drug Administration; 2) CHMP recommended conditional approval of Roche’s CD20 and CD3-targeting bispecific antibody mosunetuzumab; 3)AbbVie(AbbVie) and Genmab targeting CD3 and CD20 bispecific antibodies achieved an objective response rate of 63.1%; 4) Servier’s oral isocitrate dehydrogenase type 1 (IDH1) inhibitor ivonib combined with chemotherapy Phase 3 clinical trials reached the primary endpoint.
Market review: Last week, the A-share pharmaceutical sector fell by 7.34%, while the CSI 300 Index fell by 4.19% during the same period. The pharmaceutical industry ranked 25th among 28 industries. Last week, the H-share pharmaceutical sector fell 6.93%, while the Hang Seng Composite Index fell 4.51% over the same period. The pharmaceutical industry ranked 9th among 11 industries.
Risk reminder: 1) Policy risks: policies such as medical insurance control fees and drug price reductions have a great negative impact on the industry; 2) R&D risks: large investment in pharmaceutical R&D, high difficulty, and the possibility of R&D failure or slow progress; 3) Company risks: The operation of the company did not meet expectations.
(Article source: Ping Ansecurities）