Today's innovative drug sector rose strongly, with East China Pharmaceutical and Kanglong Chemical rising considerably

【Pharmaceutical Network Pharmaceutical Stock Market】 On December 6, the innovative drug sector rose strongly, and trading continued to be active
.
Huadong Pharmaceutical and Kanglong Chemical led the rise, and Changchun High-tech, Tigermed Pharmaceutical, and WuXi AppTec led the rise, driving the volume and price of innovative drug ETFs to rise, with the current turnover exceeding 80 million yuan, and the net inflow of funds in the past 5 days was 164 million yuan
.
Among them, on December 6, East China Medicine rose rapidly intraday, rising more than 2% in 5 minutes, and as of 9:36, it was reported at 43.
98 yuan, with a transaction of 44.
1798 million yuan, and a turnover rate of 0.
06%.

In addition, according to the financing and securities lending information of East China Pharmaceutical, the net purchase of financing on December 5, 2022 was 11.
4369 million yuan, and the financing balance was 994 million yuan, an increase of 1.
16%
over the previous day.
It is reported that after two years of clinical development, Huadong Pharmaceutical's innovative drugs have made major breakthroughs
.
For example, on November 15, Huadong Pharmaceutical announced that its wholly-owned subsidiary, ImmunoGen, an American partner in Sino-US East China, announced that its ADC drug ELAHERE for the treatment of platinum-resistant ovarian cancer has been accelerated by
the US Food and Drug Administration (FDA).
With the accelerated approval of this drug, East China Medicine may usher in new growth points
.
It is worth noting that while innovative drugs continue to make breakthroughs, Huadong Pharmaceutical's medical beauty business is very bright, achieving revenue of 1.
37 billion yuan in the first three quarters, a year-on-year increase of 113.
7%.

According to the data, East China Medicine is dominated by the pharmaceutical industry, and at the same time expands the pharmaceutical business and medical beauty industry
.
In the first three quarters of this year, Huadong Pharmaceutical's R&D expenditure on innovative drugs, innovative medical devices and other pharmaceutical industries increased by 21.
5% year-on-year, reaching 870 million yuan
.
In terms of overall performance, in the first three quarters of this year, East China Pharmaceutical's performance stopped falling and rebounded, achieving a year-on-year increase of 7.
45% in revenue of 27.
859 billion yuan, and a year-on-year increase in net profit attributable to the parent of 4.
54% to 1.
981 billion yuan
.
On December 6, Kanglong Chemical also rose rapidly intraday, rising more than 2% in 5 minutes, and as of 9:41, it was 67.
66 yuan, with a transaction of 91.
6065 million yuan, and a turnover rate of 0.
15%.

In addition, data shows that Kanglong Chemical was financed to buy 20.
1763 million yuan on December 5, accounting for 8.
64% of the purchase amount on that day, and the current financing balance is 358 million yuan, accounting for 0.
58%
of the circulating market value.
According to the data, Kanglong Chemical is a full-process integrated pharmaceutical R&D service platform
.
In terms of business, Kanglong Chemical's main business is divided into four major segments
: laboratory services, CMC (small molecule CDMO (contract customized R&D and manufacturing)) services, clinical research services, macromolecule and cell and gene therapy services.
Among them, laboratory services are the cornerstone business of Kanglong Chemical, which contributes more than 60% of the company's revenue
.
It is reported that while frequently acquiring, expanding production capacity and laying out new businesses, Kanglong Chemical's goodwill has also further improved, from 1.
166 billion yuan at the end of 2020 to 2.
096 billion yuan at the end of 2021, and then 2.
563 billion yuan
at the end of the third quarter of this year.
Analysts pointed out that the current upward trend of the pharmaceutical sector is clear
.
From the third quarter performance, the core companies of the pharmaceutical sector generally showed a marginal upward trend, and are expected to gradually return to the normal growth track
.
Looking forward to 2023, there are many high-quality growth stocks in the pharmaceutical sector that have reached the point of long-term layout, and the performance can be expected
to continue to improve.
In addition, some institutions said that with the reform of the medical and health system, the optimization of review and approval to encourage innovation, the rapid advancement of policies such as the drug marketing authorization system, the two-invoice system, and medical insurance payment, local innovation is facing new challenges and opportunities
.
The agency recommends paying attention to two core logics: 1.
Bigpharma-type enterprises that have accumulated advantages in the era of generic drugs and seek innovation and transformation, such enterprises have strong endogenous profits, more stable growth, and transformation and innovation have technological and cost advantages
.
2.
Biotech enterprises with rich R&D pipelines, existing products on the market and active layout of internationalization, the formation of product matrix of such enterprises, innovative research and development, BD capabilities, and commercial transformation have been basically verified, showing huge market potential
.
Disclaimer: Under no circumstances does the information or opinions expressed herein constitute investment advice
to anyone.