Medical biology: strong recovery of the industry

2013-04-18 source: Huatai Securities pharmaceutical industry has a strong recovery and long-term drivers remain unchanged From January to February 2013, the pharmaceutical manufacturing industry achieved a total revenue of 272.4 billion yuan from its main business, a year-on-year increase of 22.70%; and a total profit of 25.74 billion yuan, a year-on-year increase of 24.30% Both the year-on-year growth rate of its main business revenue and the year-on-year growth rate of its total profit have reached a new high, with a strong industry recovery trend In particular, when the year-on-year growth rate of total profits in the first 11 months of 2012 is lower than that of the main business income, the data in December and the data in January February have reversed, and the profitability of pharmaceutical and biological enterprises has recovered significantly From January to February 2013, there was a high growth rate in TCM related sub industries and medical device sub industries Among them, the profit growth rate of Chinese Herbal Pieces reached 64%, and exceeded the income growth rate of the same period, mainly because the price of Chinese herbal medicine rose sharply However, the profit growth rate of chemical pharmaceutical related sub industries and biological pharmaceutical sub industries is slow and significantly lower than that of income growth, and policy factors such as drug price reduction have put a great pressure on related sub industries In 2013, government investment increased, and the importance of primary market increased In the report on the implementation of the central and local budgets in 2012 and the draft of the central and local budgets in 2013 (Abstract) held at the two sessions in 2013, it was pointed out that the planned medical and health expenditure in 2013 was 260.253 billion yuan, an increase of 27.1%, with a year-on-year increase of nearly 10 percentage points In view of the increase of the government's investment growth, the overall growth rate of income and profit of the medical and health industry in 2013 is expected to return to more than 20% While the total investment is guaranteed, the focus of the government's work will also be more transferred to the grass-roots market The new version of the catalogue of basic drugs issued in March supplements the categories of anti-tumor and blood disease drugs, pays attention to the connection with common diseases, frequently occurring diseases, especially major diseases, women's and children's drugs, and the importance of China's grass-roots medical and health service system will be further enhanced 2013 is the year of policy, and the industry uncertainty increases We believe that the following policies that may have a greater impact on the industry include drug-based bidding, medical insurance fee control, opening up secondary bargaining and other policies, which should be focused on in the future Among them, in the second quarter, some opinions on promoting the reform of drug circulation may be published, and the opinions may open up the second bargaining In general, if the "second bargaining" is liberalized, it will further enhance the hospital's strong position and reduce the profit space of pharmaceutical enterprises As its introduction and implementation will be the result of multi-party game, the specific impact remains to be paid attention to