The substitution of high-end imports of domestic pharmaceutical equipment has accelerated, and it has been shown in the performance of the head

【Pharmaceutical network market analysis】As the upstream of the pharmaceutical industry, the pharmaceutical equipment industry is driven by policies, market demand, capital and other multiple factors resonate, and the market scale is continuing to expand, currently approaching 100 billion yuan, and it is expected to exceed 200 billion yuan
by 2025.

Many securities companies believe that the rapid development of the current biopharmaceutical industry will bring a strong impetus to the pharmaceutical equipment industry, forcing pharmaceutical equipment enterprises to transform and upgrade in the high-end direction of automation, informatization, and intelligence, and domestic substitution will accelerate
in the future.

Pharmaceutical equipment (image source: pharmaceutical network) The industry said that the high-end pharmaceutical equipment track has become the key direction of the head enterprise, and the import substitution process will continue to accelerate
.

In fact, this has also been shown
in the head performance.

Chutian Technology mentioned in an institutional survey on August 28 that the company achieved good results in the first half of 2022, one of the reasons is high-end import substitution, "vaccine-related orders, the company's innovation ability, delivery ability, quality assurance ability has been tested, and constantly expand the market share in the supply chain of high-end biological drugs such as vaccines, and gradually realize the substitution
of foreign imported equipment.
"
The 2022 semi-annual report shows that Chutian Technology achieved operating income of 2.
870 billion yuan, an increase of 20% year-on-year; Attributable net profit was 299 million, compared to 236 million in the same period last year, an increase of 27%
year-on-year.

While the revenue and net profit double growth, the company is also strengthening research and development efforts, the first half of the year R & D investment of 232 million, compared with 198 million yuan in the same period last year, an increase of 17%.
Coincidentally, in the first half of the year, the revenue and net profit also achieved double growth of Canaan Technology mentioned in the report: some of the company's products have reached the international advanced level, of which the quality and performance of core products have improved year by year, similar to foreign advanced products, with the strength of import substitution, and the price is much lower than that of foreign imported equipment, to meet the multiple needs of customers for process accuracy, stable performance and economic costs, etc.
, and have strong competitiveness
in terms of cost performance.

It is reported that in the first half of the year, Dongfulong's biological and sterile preparation water equipment and liquid distribution system engineering business achieved operating income of 136 million yuan, accounting for about
a quarter of the total revenue of 494 million yuan.

In the field of biological drug supply chain of the above enterprises, there has always been a "card neck" link, mainly by imported manufacturers occupy most of the high-end biological drug equipment and consumables market, at present, China's biological drug industry is in the explosive stage, biological drug products have been listed, the investment demand for fixed assets of enterprises has increased, is expected to bring increments to the biological drug supply chain, in this context of domestic substitution is imminent, it is urgent to
。
Some securities have pointed out in the research report that at present, the localization rate of biological drug equipment in China is still relatively low, most of the market is monopolized by overseas manufacturers, and the income and proportion of biological drug equipment represented by domestic heads such as Dongfulong and Aoxing Life Science and Technology are still relatively small, and the import substitution space of domestic enterprises in the future is large.
In order to develop the biomedical industry, the policy side has successively issued documents to support the development of the supply chain of
high-end biopharmaceutical equipment.

For example, on May 10 this year, the "14th Five-Year Plan for the Development of the Bioe economy" was released, which proposed to focus on improving the health security capabilities of the people, focusing on drugs, vaccines, advanced diagnosis and treatment technologies and equipment, biomedical materials, precision medicine, inspection and testing and biological health care, etc.
, to enhance the original innovation ability, strengthen the scientific research of drug supervision, and enhance the supply chain guarantee level of
biomedical high-end products and equipment.

Under the efforts of many parties, in recent years, domestic biological drug equipment has made breakthroughs, such as stainless steel reactors with relatively low research and development and production barriers have become a breakthrough point for domestic enterprises, and it is expected to achieve domestic substitution first, but the technical barriers of lower cost and more flexible production of disposable reaction systems have yet to be broken
through in terms of design and other aspects.

In general, high-end has become the development direction of the biopharmaceutical equipment industry, and the enterprises represented by the head are expected to gradually break through the "card neck" link through continuous innovation and research and development, and accelerate import substitution with cost-effective advantages and tap more market space
.

Disclaimer: In no event shall the information or opinions expressed herein constitute investment advice
to any person.