Pharmaceutical Biology Industry Stand Upstream | Import Alternatives

Medical Network March 29th In the trade war, the list issued by the United States mainly focuses on high-tech industries such as medical devices, high-speed rail equipment, biomedicine, and new materials in China. These industries are all U.S. competitive industries, which will force China to accelerate Industry upgrade, the pharmaceutical industry took a standout. From the performance of the pharmaceutical biotechnology industry in the past two days, the pharmaceutical bioindex rose 2.8% on the week after a big gain of 1.6% yesterday.

Not only does the external environment strengthen the import substitution path of the pharmaceutical industry, but in recent years the pharmaceutical industry has also ushered in the policy-intensive release period. The pharmaceutical industry has become the key policy support area. In the “Made in China 2025” action plan released by the State Council, the word “medicine” is used. It has been repeatedly mentioned that biopharmaceuticals and high-performance medical devices have become one of the key areas for development. In addition, the "Made in China 2025 Key Technology Roadmap" lists biopharmaceuticals and high-performance medical devices as two major directions in the medical field's advanced manufacturing. .

In the current pharmaceutical manufacturing industry, the international competitiveness is still relatively weak. drug And high-end medical devices still rely on imports. With the policy reform dividends, medical equipment, generic drugs and other areas of import substitution are large. At the same time, the consistency evaluation policy and the new health insurance payment policy will also be accelerated. medicine with medical instruments The localization process.

CITIC Securities Research pointed out that from the perspective of the subdivided fields, China’s medical device market has exceeded 300 billion in size, and it is the second largest device consumption market in the world. However, China’s equipment consumption accounted for only 40% of the developed countries. The domestic high-end medical device market has long been dominated by foreign companies. With the continued breakthrough in technology research and development and product performance of domestic medical equipment, the path of import substitution of domestic high-end and high-end medical devices has gradually begun.

According to statistics from the Securities Times and Data Bao, currently there are more than 40 listed medical device companies, nine in vitro diagnostic companies, Kehua Biotech, Dian Gene, Dean Diagnostics, etc. Currently domestic domestic market for biochemical diagnostics The rate has exceeded 50%; Immunodiagnostics is one of the fastest growing areas of in vitro diagnostics in recent years, with a growth rate of more than 15%, but there are obvious advantages for foreign manufacturers in this market. Nine strong biologicals stated in the 2016 annual report that the company Diagnosed raw materials still have the risk of being partly dependent on imports, but the company is trying to replace imported raw materials with self-produced raw materials, and the proportion of imported raw materials has decreased year by year.

In the area of ​​generic drugs, the first batch of drug catalogs approved by the State Food and Drug Administration to assess the consistency of the quality and efficacy of generic drugs, involving a total of 12 varieties, 17 items and 7 items enterprise , Including Xinlitai's clopidogrel hydrogen sulfate tablets, Huahai Pharmaceutical's paroxetine hydrochloride tablets, etc. With the gradual assessment of policy dividends for consistency assessment, products that have been evaluated for consistency or supported, relevant companies are expected to expand the market, Conducive to import substitution.

The pharmaceutical industry is the main battlefield for import substitution. It is still a long way to really realize industrial upgrading. The key is to rely on technological advancement and innovation. This requires increased investment in R&D. Statistics show that the average R&D input of pharmaceutical listed companies accounted for operating income in 2016. The proportion is only 5%. Watson Bio, Haihong Holdings, Shuangcheng Pharmaceuticals and other R&D investments accounted for more than 20% of total operating revenue, which is relatively high. Looking at R&D investment, 2016 Hengrui Pharmaceutical, Fosun Pharma R&D Investment exceeded RMB 1 billion, and R&D investment from Hisun Pharmaceutical, Shanghai Pharmaceuticals, and Cologne Pharmaceuticals exceeded RMB 500 million.

(The data is provided by the Securities Times Center database. The data comes from the listed company announcement.)

List of pharmaceutical companies with R&D input accounting for top revenue