After seeing the big financial industry represented by banks, brokers and insurance, we will learn about the pharmaceutical industry, one of the most important representatives in the big consumer industry.
With the deepening of China's aging population, the future development of the pharmaceutical industry has a solid mass base. If we look at the listed companies in the pharmaceutical industry, we can find that bull stocks have emerged in large numbers in the past ten years, with many ten-fold shares, which have given long-term investors rich returns. It is worth spending some time to learn how to invest in the pharmaceutical industry.
interestingly, besides being highly professional, although the pharmaceutical industry is called an industry, it is actually not an industry with the same business and financial logic, but a large collection of multiple sub-sectors with completely different logic. Therefore, the first article in our series of "zero-basic medicine" will first carefully sort out how many sub-sectors there are in the pharmaceutical industry and briefly introduce them one by one.
the subdivision of the pharmaceutical industry begins with the separation of medicines.
when it comes to medical care, people will think of hospitals first. Where is the hospital? It's where doctors treat patients. What does a doctor do? Provide medical services for patients. Therefore, from the medical point of view, the first sub-sector of the pharmaceutical industry is medical services.
among a-share listed companies, the representative medical service enterprise is Aier Ophthalmology. Aier Ophthalmology is a professional ophthalmology chain medical institution. By 219, more than 27 professional ophthalmology hospitals have been established in 3 provinces and cities in Chinese mainland, covering more than 7% of the national medical insurance population, with an annual outpatient volume of more than 6.5 million. Moreover, there are more than 8 eye hospitals in the United States, Europe and Hong Kong.
Meinian Health, which is engaged in health check-up, is another representative enterprise in the field of medical services. Meinian Health is a professional medical examination and medical service group with health examination as the core and integrating health consultation, health assessment and health intervention. Headquartered in Shanghai, the company is deeply involved in more than 2 core cities such as Beijing, Shenzhen, Shenyang, Guangzhou, Chengdu, Wuhan, Xi 'an, Tianjin, Chongqing and Hangzhou, with more than 4 medical and physical examination centers. The professional service team has more than 4, full-time experts, medical care and management teams. In 217, it has provided professional health services for 2 million people. In 218, the number of physical examinations is expected to exceed 3 million. It is a listed company with outstanding market value and influence in the medical and big health sectors.
In addition, some listed companies participate in holding private hospitals, which are also medical services. Representative Chancheng Hospital invested by Fosun Pharma, in early 218, Chancheng Hospital passed the JCI certification of international hospitals and became the first top-three general hospital in China to pass the sixth edition of JCI standard.
the medical service industry is a very good industry, because people always get sick, and when they get sick, they need to go to the hospital to see a doctor, and doctors provide medical services; Healthy people also need regular physical examinations to find potential hidden dangers as early as possible. These are rigid demands, which are hardly affected by economic cycle fluctuations. From the perspective of supply, professional doctors need long-term study and practice to develop, and the number of services they can provide is generally limited, so the price of medical service industry is increasing in the long run, which can effectively overcome inflation.
after talking about medicine, let's take a look at medicine.
The pharmaceutical manufacturing here is a broad concept, including the research and development, production and manufacturing of medicines. First of all, pharmaceutical companies need to discover and create a new drug through research and development. This is the concept of innovative drugs, with emphasis on research and development. Secondly, after a new drug is developed by a pharmaceutical company and approved by the State Food and Drug Administration, it can be mass-produced and ready for listing. The key point of this link lies in production. Therefore, the key point of pharmaceutical manufacturing in a broad sense lies in whether it is necessary to develop innovative drugs.
innovative drugs
if a pharmaceutical company focuses on research and development, focusing on discovering new drugs, it is an innovative drug company. Internationally, famous pharmaceutical companies are all innovative pharmaceutical companies, such as Pfizer, Novartis, Roche, Merck, Sanofi, Johnson & Johnson. Johnson), Gilead Sciences, GlaxoSmithKline, AbbVie, Amgen, etc.
In the A-share market, the most famous representative innovative pharmaceutical company is Hengrui Pharma, which is also the pharmaceutical company with the highest market value at present, with the latest market value as high as 25 billion yuan. Hengrui Pharma is a medical and health enterprise engaged in medical innovation and R&D, production and promotion of high-quality drugs. By the end of 218, * * * has more than 2, employees worldwide, and is a well-known supplier of antineoplastic drugs, surgical drugs and contrast agents in China. It is also the lead unit of the Industry-University-Research Alliance for National Antineoplastic Drug Technology Innovation, with the National Targeted Drug Engineering Technology Research Center and Post-Doctoral Research Center.
innovative pharmaceutical companies all have a high proportion of R&D investment. Take Hengrui Pharma as an example, the company invests more than 1% of its sales in R&D every year, and has established R&D centers or branches in the United States, Europe, Japan and China. By the end of 218, the company's R&D team had more than 3, people, including more than 2, doctors, masters and more than 1 returnees. The company has applied for a total of 655 domestic invention patents, including 147 effectively authorized domestic invention patents and 226 authorized foreign patents such as those in Europe, America and Japan. The proprietary core technology won the second prize of the National Science and Technology Progress Award and the China Patent Gold Award.
generic drugs
if a pharmaceutical company's main focus is not on original research and development, but on imitation production of drugs whose patent protection has expired, then this company is a generic drug company.
the significance of generic drugs lies in that they do not need high R&D investment, nor do they need to repeat many years of preclinical animal research and human clinical research before the approval of innovative drugs, so their production cost is significantly lower than that of innovative drugs. In order to ensure that generic drugs can treat diseases, generic drugs need to have the same active ingredients, dosage forms, routes of administration and therapeutic effects as the copied drugs, that is, they need to be proved to be the same bioequivalence as the original drugs.
In our country, the Food and Drug Administration monitors the efficacy of generic drugs through consistency evaluation. Only those pharmaceutical companies that have passed the conformity evaluation of generic drugs can sell the generic drugs and participate in the bidding for medical insurance drugs. Therefore, the number of generic drugs that pass the consistency evaluation is usually a quantitative indicator to examine the R&D strength of a generic pharmaceutical company.
in the a-share market, the representative generic drug companies are Huadong medicine. The company is mainly engaged in the production and sales of antibiotics, proprietary Chinese medicines, chemical synthetic medicines and genetically engineered medicines, as well as the wholesale and retail distribution of Chinese and western medicines, Chinese herbal medicines and medical devices. It is a large-scale comprehensive pharmaceutical listed company integrating pharmaceutical research and development, pharmaceutical industry, drug distribution, retail and pharmaceutical logistics. Huadong Medicine mainly completes the production of generic drugs through its subsidiary, Sino-US Huadong, with sales exceeding 6 billion yuan in 217. It is a leading enterprise in the research and development and production of organ transplantation and diabetes drugs in China. Huadong medicine is a distinctive enterprise, which can be seen from its business strategy slogan: "Do not seek many varieties, but seek the largest products;" Either the only one or the first; You don't have to be a locomotive, but you must take the first carriage. "
In addition to being classified according to whether or not to do original drug research and development, pharmaceutical manufacturing enterprises can also be divided into:
Among them, chemical pharmaceutical companies can be further subdivided into:
Below, we introduce various pharmaceutical companies classified according to drug properties.
raw materials
the English abbreviation of raw materials is API (active pharmaceutical ingredient), which refers to any substance or mixture of substances used in pharmaceutical manufacturing, and when used in pharmacy, it becomes an active ingredient of drugs.
Specifically, API enterprises can be divided into two categories:
In the A-share market, the representative bulk API enterprises are the first (21) Xinhe Company of SME Board. The company is a national high-tech enterprise mainly engaged in the production and sales of nutrition, flavors and fragrances, new polymer materials and raw materials. The company is one of the four largest vitamin manufacturers in the world, a large-scale essence and fragrance manufacturer in China and a vitamin feed additive enterprise.
huahai pharmaceutical co., ltd is the representative enterprise of characteristic APIs. The company is the first pharmaceutical company in China that has passed the FDA preparation quality certification and independently owned the ANDA document number, and is also the first pharmaceutical company in China to realize large-scale preparation sales in the United States. The company has more than 6,5 employees and more than 4 molecular companies (including the United States, Japan, Germany, Russia, Spain, India, etc.) all over the world. Its main business covers chemical drugs, biological drugs, pharmaceutical packaging, trade circulation and other fields. It has established long-term cooperative relations with more than 5 pharmaceutical companies around the world and provided medical and health products to nearly 2 countries and regions. It is one of the major manufacturers of cardiovascular and psychiatric health medical products in the world.
bulk APIs, because they are similar to bulk commodities, make their production enterprises have typical cyclical properties. From the investment point of view, it is more like chemical enterprises, buying when the industry is low (low PB and high PE) and selling when the industry is high (high PB and low PE).
The characteristic raw materials are mainly used for supporting downstream pharmaceutical companies and finished pharmaceutical companies, thus having the characteristics similar to the "Apple Industrial Chain". From the perspective of investment, it mainly depends on who the downstream customers of this enterprise are. If the top ten customers are internationally famous pharmaceutical companies, then the strength of this company is good; If the top ten customers are fewer pharmaceutical companies, they may need to be cautious in investment.
chemical preparations
pharmaceutical preparations, in general, are the processing of raw materials and other auxiliary materials (such as medical capsules) into finished drugs. In the field of chemical preparations, most pharmaceutical companies are generic companies.
In A-shares, there are still many chemical companies. Besides Huadong Pharmaceutical mentioned in the section of generic drugs above, the representative listed companies include Livzon Group, Xinlitai and Enhua Pharmaceutical.
From the perspective of investment, the following points are mainly considered:
Chinese patent medicine
Chinese patent medicine is a characteristic of our country, with a long history of traditional Chinese medicine as a broad mass base. According to whether doctors need to prescribe, Chinese patent medicines can be divided into:
In the A-share market, the representative Chinese patent medicine enterprises are Yunnan Baiyao, Tongrentang, Dong 'e Ejiao, Pien Tze Huang and Tasly. In addition, the representative enterprise of Chinese herbal pieces is Kangmei Pharmaceutical.
biopharmaceuticals
biopharmaceuticals refer to a kind of products used for prevention, treatment and diagnosis by using the research results of biology, medicine and biochemistry, and comprehensively utilizing the principles and methods of physics, chemistry, biochemistry, biotechnology and pharmacy, and using organisms, biological tissues, cells and body fluids.
Generally speaking, biopharmaceutical enterprises are enterprises that manufacture drugs based on organisms. There are many subdivisions of biopharmaceuticals, including:
In the A-share market, Hualan Bio is the representative blood product enterprise. The company is a national high-tech enterprise engaged in research and development, production and sales of blood products, vaccines and genetic engineering products. It is also one of the enterprises with the highest comprehensive utilization rate of plasma, the most varieties and the most complete specifications in China's blood products industry.
Representative vaccine companies include Zhifei Bio, watson biological and Kangtai Bio, and of course, the protagonist of the vaccine incident, Changsheng Bio. Among them, Zhifei Bio is one of the listed private biological vaccine suppliers and service providers with the strongest comprehensive strength in China.
The representative recombinant protein drug enterprise is Changchun Gaoxin, and its main products are recombinant human growth hormone (assisted growth) and recombinant human follicle-stimulating hormone for injection (assisted reproduction). In addition, tonghua dongbao produces recombinant human insulin, which makes China the third country to produce recombinant human insulin after the United States and Denmark.
representative monoclonal antibody companies include fuhong Hanlin, Xinda biopharmaceuticals, Qilu pharmaceuticals, etc. under Fosun Pharma.
after seeing the pharmaceutical manufacturing, let's take a look at another big subdivision in the pharmaceutical industry: medical devices. Similar to drugs, medical devices are also varied.
first of all, let's look at pharmaceutical equipment, which is necessary for every pharmaceutical company. Representative A-share listed companies are Dongfulong and Chutian Technology. Dongfulong is a comprehensive pharmaceutical equipment service provider that provides global pharmaceutical enterprises with overall solutions for pharmaceutical technology, core equipment and system engineering, and is the largest freeze-dryer equipment manufacturer in China. Chutian Technology's main business is research and development, design, production, sales and service of water-based pharmaceutical equipment, and it is a representative enterprise that replaces imported pharmaceutical equipment products in China.
pharmaceutical equipment, similar to excavators in the field of infrastructure, represents the needs of GMP workshop transformation in downstream pharmaceutical companies, so it is obviously cyclical in some industries. When the demand for downstream GMP transformation increases substantially, the orders of upstream pharmaceutical equipment enterprises will increase in volume, which will bring about a significant increase in operating income and net profit; When the demand for downstream GMP transformation weakens, orders will be greatly reduced, and revenue and net profit will drop significantly.
Secondly, let's look at high-end medical devices, such as common coronary stents and orthopedic medical devices. The unit price of these varieties is often very high, and the terminal price even exceeds 1, yuan. The ex-factory price is almost 3% of the terminal price, which reflects the characteristics of high unit price and high gross profit. At the same time, it may take five years or more for the three types of medical devices to enter the clinic from the beginning to the final approval, and the R&D investment is expensive and the R&D cycle is long, which is similar to innovative drugs.
in a-share, the representative high-end medical device company is lepu medical, which is the leading high-end medical product industry group of interventional diagnosis and treatment equipment for cardiovascular diseases in China, and has the only national engineering technology research center for interventional diagnosis and treatment equipment for cardiovascular diseases awarded by the Ministry of Science and Technology, and is one of the few enterprises that can form strong competition with foreign products in the field of high-end medical devices in China. The core product of Lepu Medical is the heart stent, and its product research and development has also gone through many iterations, from the earliest Partner series to the Nano series, and then to the completely degradable NeoVas series being declared, and the product research and development has been continuously upgraded.