The pharmaceutical sector is expected to usher in a recovery, and pharmaceutical companies are "rising"

【Pharmaceutical Network Pharmaceutical Stock Market】 Entering 2023, the pharmaceutical sector is expected to usher in a recovery
.
Some institutions said that they are optimistic about the pharmaceutical market catalyzed by factors such as medical insurance negotiations, centralized procurement impact clearance, and global innovation progress in 2023
.
Data show that as of 10:53 on January 10, Junshi Biotech rose 7.
26%, Shenzhou Cell rose by more than 5.
33%, Tiantan Biotechnology rose by more than 4.
92%, and Zhifei Biotechnology rose by more than 4.
76%.

The Biologics ETF is currently up 1.
52% and gaining momentum
.
On January 10, the pharmaceutical sector continued to rebound in the afternoon, with Guangshengtang, Haichen Pharmaceutical, Price, and Cperi rising by more than 10%, and Jiudian Pharmaceutical, Xianju Pharmaceutical, Beida Pharmaceutical, and Huahai Pharmaceutical leading the gains
.
It is understood that recently, the medical insurance national talks have been completed, and a number of innovative drugs are expected to be included in the medical insurance volume
.
The data shows that in 2022, a total of 343 drugs passed the preliminary formal review, including 145 varieties in the catalogue and 198 varieties outside the list
.
In addition, a total of 81 exclusive drugs participated in medical insurance negotiations for the first time, and 38 varieties participated in the bidding of non-exclusive varieties
.
Analysts pointed out that the normalization of medical insurance negotiations is conducive to the rapid entry of innovative drugs into hospitals and sales volume, and the recent policy margins such as centralized procurement and medical insurance negotiations for innovative drugs have improved, and the pressure on the domestic payment side has eased
.
In addition, some people said that the decline in exclusive varieties is expected to ease under the "simple renewal" renewal negotiation rules, which is expected to provide a catalyst
for the innovative drug market in January.
As the impact of medical insurance on the acceleration of the release of innovative drugs continues to strengthen, the peak cycle of domestic innovative drugs will be greatly accelerated, and many innovative drugs are expected to be admitted to the hospital quickly after medical insurance negotiations, and peak sales
within 3-5 years after marketing.
For innovative drug enterprises, after years of cultivation, the company's innovative business has gradually entered the harvest stage, providing new impetus
for performance growth.
Taking the above-mentioned Junshi Biologics as an example, the company has the PD-1 drug teripulimab, the domestic anti-PCSK9 monoclonal antibody approved by IND, and the BTLA antibody
approved by NMPA and the US FDA IND.
Approved by IND for anti-BLyS monoclonal antibody, CD112R is a novel immune checkpoint pathway discovered by the company, and related antibody drugs TAB009/JS009 were approved
by the FDA in April 2022.
It is reported that on the basis of continuously strengthening the value of the antibody drug R&D technology platform, Junshi Biologics is also constantly building new technology platforms/pipelines such as small molecules, mRNA, dual antibodies, ADCs, and vaccines through external cooperation, so as to provide assistance
for the subsequent continuous expansion of the disease field and the reinforcement pipeline layout.
The above-mentioned China Cell is also steadily transforming from a research and development enterprise to a commercial enterprise, and the data shows that the annual revenue of China Cell in 2021 was 134 million yuan, a year-on-year increase of 40,848.
45%.

。 At present, the commercialization prospects of Shenzhou Cell's main products entering the clinical stage have gradually become clear, in addition to Anchor has been approved for marketing, its supplementary application for pediatric indications has been accepted, there are still SCT400, SCT630, SCT510 three products in the marketing application stage, including non-Hodgkin lymphoma, psoriasis, rheumatoid arthritis, ankylosing spondylitis, colorectal cancer, lung cancer, liver cancer, ovarian cancer, cervical cancer, recurrent glioblastoma and other indications.
The other six clinical product candidates are also in phase II and phase III clinical studies
, respectively.
The industry said that the products listed in the next two or three years will bring sustained and stable cash flow returns to the company and promote the layout and expansion
of the company's commercial territory.
Medical insurance negotiations and the continuous innovation and development of pharmaceutical companies themselves will continue to promote the release of innovative drugs and enter the harvest period
.
At the same time, the expansion of demand brought about by aging and the continuous increase in residents' incomes have also brought driving forces
to the development of innovative drugs.
Analysts said that with the continuous strengthening of China's determination for economic development in 2023, the increasing awareness of public health, and the intrinsic yearning for a better life, the pharmaceutical sector, especially the innovative drug sector, will return to the main line
.
Some institutions suggest that in addition to innovative drugs, it is recommended that in the short term, individual stocks whose performance in 22Q4 are expected to exceed expectations can be explored, and in the medium and long term, they can also be optimistic about the assets of late recovery such as APIs, traditional Chinese medicine formula granules, vaccines, services, and biological products
.
Disclaimer: Under no circumstances does the information or opinions expressed herein constitute investment advice
to anyone.