China Business Daily (Reporter Ma Jia)According to data from the financial tool Wind, as of October 18, more than 20 listed pharmaceutical companies have released reports of expected performance pre-growth, and pharmaceutical companies in the fields of medical devices, innovative drugs, pharmaceutical outsourcing, and retail pharmacies have all reported good news in advance. Industry insiders said that with the support of multiple policies, the “domestic substitution of imports” may accelerate in various fields of the pharmaceutical industry.
On November 24, 2021, workers of a pharmaceutical company in Ganyu District, Lianyungang City, Jiangsu Province produce products for export. (Photo courtesy of CNSPHOTO)
Medical devices lead the way, followed by pharmaceutical outsourcing
From the perspective of business direction, in the third quarter of this year, companies in the field of medical devices may become “big winners”.
According to the financial report, MGI and Kaipu Bio are expected to increase their net profits attributable to their parent companies by 340% and 124% year-on-year respectively in the first three quarters of this year. The domestic medical device leader Mindray Medical achieved double growth in operating income and net profit, and the first three quarters of net profit It has exceeded the net profit for the whole year of last year.
According to incomplete statistics from a reporter from China Business Daily, as of now, in the domestic A-share market, at least eight listed companies in the field of medical devices have achieved profitability.
“Medical institutions have indeed increased their orders for large and medium-sized medical devices, implantable medical devices, small medical equipment and consumables, and household medical equipment.” Relevant staff of Lexin Medical, a household medical and health electronic product company, told reporters that electronic thermometers like electronic thermometers , blood pressure monitors, blood glucose meters and other orders have increased, and the company will continue to innovate and optimize personal health monitoring and home treatment products in the future.
Xu Jiarui, deputy general manager of Guangzhou Zhongcheng Digital Technology, a subsidiary of GPHL, said that at present, the domestic medical device consumer market is ushering in an overall favorable situation. With the aging of the population and the improvement of health awareness, the application of medical devices has gradually shifted from diagnosis and treatment to prevention and rehabilitation. At present, the consumption ratio of domestic medical devices and medical medical devices in my country is 1:4, while that in developed countries is generally 1:1, and the market development space is still large.
In addition to the medical device field, the performance of the pharmaceutical outsourcing field is also relatively bright. For the first time, WuXi PharmaTech, the leader in the field of pharmaceutical outsourcing, expects that its operating income in the first three quarters of this year will exceed 20 billion yuan, and it is also the company with the largest expected profit.
A relevant person in charge of a domestic new drug R&D and production service company admitted to reporters that the global pharmaceutical outsourcing market has gradually shifted to emerging markets in Asia-Pacific, and China has obvious advantages in new technology development, intellectual property protection, and supply chain. At present, the success rate of new drug research and development at home and abroad is not high, but the demand is still large.
Policies continue to help the market open up room for growth
In the first three quarters of this year, innovative drugs, medical devices and other fields have received policy support.
In June of this year, the National Medical Insurance Administration proposed the “simple renewal” rule, which aims to reduce the pressure on innovative drugs to cut prices. According to the rules, the National Medical Insurance Bureau will calculate a ratio based on the actual expenditure of medical insurance before the product and the budget value of the fund, and adjust the drug price based on this. If the actual medical insurance expenditure is below 110% of the ratio, the price will not be adjusted; if the actual medical insurance expenditure ratio is between 110% and 200%, the payment standard will be reduced by 5% to 15%.
Deng Zhidong, general manager of Hainan Boao Medical Technology Co., Ltd., said that “simple renewal” simplifies the negotiation process. Although companies still have to reduce prices, the decline is relatively mild. And the decline is linked to the purchase volume, which is more conducive to the improvement of quality and efficiency of enterprises, and the development of the industry is more sustainable.
“Centralized procurement has accelerated the trend of domestic substitution of imports, opening up market space for domestic pharmaceutical companies.” Cao Bo, a medical consultant for Biotech innovative drugs, said that price reductions have become the norm. It can also be opened quickly. Looking back at the results of medical insurance negotiations in the past few years, the participation of domestic drugs has been increasing, and the willingness and speed of entering medical insurance are also increasing.
In addition, before and after the implementation of the “Financial Discounted Interest Support Policy for Hospital Loans to Update Medical Equipment”, orders from medical device companies surged. Mindray Medical said that in addition to special medical debts and the hospital’s own funds, subsidized loans will become another important source of funds for the procurement of medical equipment. Up to now, more than 200 billion yuan of medical equipment loan demand has been reported nationwide, and it is expected that the loan demand related to the company’s products will exceed 20 billion yuan, which will improve the certainty of the company’s performance goals.
“Domestic Substitute Import” Accelerates Development and Has Stronger Stamina
Encouraged by the growth rate of performance in the third quarter of this year, the stamina of domestic pharmaceutical companies may be stronger.
Ping An Securities said that the overall decline in medical service prices was better than expected, and through centralized procurement, upstream domestic consumables companies will usher in a golden period of domestic substitution. With the adjustment of dental implant prices, the industry penetration rate is expected to increase rapidly.
The trend of “domestic substitution of imports” in the field of medical devices may be expected to lead. Chang Yanxing, deputy general manager of Shanghai Wison Technology Co., Ltd., said that during the implementation of various policies such as the Regulations on the Supervision and Administration of Medical Devices, the company’s enthusiasm for innovation has been improved by reducing the time limit for application and simplifying relevant application materials and procedural requirements. A series of policies have lowered the entry threshold for medical device companies, but the requirements for companies to ensure the safety and effectiveness of products have increased, which is more conducive to promoting the rapid and efficient development of the domestic medical device industry.
“Domestic medical institutions have introduced many large-scale domestic medical equipment to promote the standardization and popularization of domestic high-end equipment.” An institutional investor who has participated in the survey of listed pharmaceutical companies for many times admitted that in the domestic medical device industry, small and micro enterprises are relatively small and micro enterprises. many. In such a market environment, the innovation achievements of leading enterprises have attracted more attention. With the support of policies, the market space of leading domestic medical device enterprises is even greater.
After the announcement of the third quarter results of pharmaceutical companies, securities institutions have expressed their optimism about the fourth quarter of the pharmaceutical industry. The Everbright Securities Research Report stated that the current valuation of the pharmaceutical sector is still at a new low in the past ten years, and the institutional allocation ratio is also at a low level. Recently, domestic policies have been favorable, and the policy margin has improved significantly. The market sentiment is expected to continue to recover. Institutions continue to be optimistic about the investment opportunities in the pharmaceutical sector in the fourth quarter.
“At present, domestic medical device companies are subsidizing distributors, increasing service investment, and taking advantage of the implementation of centralized procurement and other policies to expand market share and increase market share.” A relevant person in charge of a domestic private hospital said, Even after the price cut, the domestic medical device market still has a scale of several billion yuan. A good market environment is good for the development of enterprises, especially for enterprises to improve their own technical level.Return to Sohu, see more
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