Among listed companies, according to the product categories of their main businesses, they are roughly divided into five major sub-industries, namely bulk raw materials, specialty raw materials, chemical preparations, traditional Chinese medicines and proprietary Chinese medicines, biopharmaceuticals, etc. , below we can analyze the sub-sectors and key listed companies that deserve attention.
1. Bulk raw material pharmaceutical industry
This sub-industry has obvious cyclical characteristics. The main reason is that its products are low-tech primary products, and the mechanism for price adjustment of supply and demand is extremely obvious. Largely affected by market factors. In recent years, my country's raw materials have grown rapidly. The international transfer of the production of bulk raw materials such as vitamins, fermented antibiotics, antipyretics and analgesics has been basically completed. my country occupies 40-70% of the market share. Judging from its development trend, the price of raw materials in my country shows obvious signs of decline. Among bulk APIs, the key products related to listed companies in the A-share market are VC and penicillin. Although the demand for the two has increased, it is far from enough to make up for the loss of falling prices. The key to its investment strategy is to intervene in leading companies in the industry when prices are at rock bottom. You can focus on North China Pharmaceuticals.
2. Specialty API industry
Specialty API is a sub-industry with huge development potential. Unlike bulk API, there is no obvious price cycle for specialty API. Throughout its entire product cycle, its price has shown an irreversible and continuous decline. In recent years, international new drug research and development has repeatedly suffered setbacks, but patented drugs have shown rapid growth, and the next five years will usher in the peak of many patent expirations. Some domestic companies were early involved in the research of existing patents, and quickly launched their own specialty raw materials when the patent period was about to expire. They passed European and American drug administration registrations and entered the European and American regulated markets as well as Asia through multi-variety combinations. The non-Latin American regulated market has demonstrated strong profitability and growth capabilities. For example, Hisun Pharmaceuticals and Huahai Pharmaceuticals, which perform relatively well in this industry, and Zhongke Hechen, which have similar businesses.
3. Chemical pharmaceutical industry
Although chemical pharmaceuticals are the most important part of the pharmaceutical industry, this sub-sector accounted for 32% of my country's pharmaceutical sales revenue and profits in 2003. and a relatively large proportion of 34%. However, most chemical preparations in my country have low technical content and serious oversupply. The capacity utilization rate is about 50%. On the other hand, chemical preparation drugs are the mainstay of hospital prescription drugs, and more than 80% of sales are completed in hospitals. Therefore, in the prescription drug market, penetration and continued influence on hospital terminals are the key to successful operations and maintaining growth. Therefore, corporate products often have high gross profit margins, so they can survive by offering high profit margins. However, the current national policy orientation is to control the abuse of antibiotics and reduce their artificially high prices, so the mid-term observation is not optimistic about this sub-sector. However, advantageous companies in this sub-sector are still worthy of attention, such as Hengrui Medicine and Tianyao.
4. Traditional Chinese Medicine and Chinese Patent Medicine Industry
With the expansion of the OTC market and the improvement of living standards, the consumption of Chinese patent medicines has shown a rapid growth trend. Because in recent years, my country's OTC market has been growing at a rate of about 20% every year, and Chinese patent medicines account for nearly 75% of OTC varieties and more than half of the sales. It can be seen that the growth of this industry is a stable growth industry. Since Chinese patent medicines have dual attributes of medicines and health care products, they have the same consumption attributes as consumer goods in the market. As a result, consumers’ reliance on brands in the process of consuming Chinese patent medicines is too high. As the EU has relaxed its access standards for botanical drugs in recent years, Tongrentang, a representative company of corporate brands and health-care traditional Chinese medicine brands, Yunnan Baiyao, a representative product brand and therapeutic traditional Chinese medicine brand, and Tasly, a representative of current traditional Chinese medicine suppliers, have advantages in the industry. Enterprises will benefit it in the medium and long term.
5. Biopharmaceutical industry
The biotechnology industry is still in an emerging growth stage. Due to the lack of effective R&D platforms and industrialization capabilities in my country’s biopharmaceutical industry, most biological products are generic. Since then, the competitive situation and technological content have been relatively low. However, the epidemic and people's emphasis on health have stimulated the accelerated development of vaccines and immune modulators. In addition to loose policy space, some companies in the biopharmaceutical industry will also receive tax, financing, loan and other preferential measures to carry out vaccine production and scientific research, which will also bring huge business opportunities to biopharmaceutical listed companies.
For example, Tiantan Biologics, according to China National Biotechnology Corporation's plan, the vaccine business of the six major biological products institutes under the former Ministry of Health will be concentrated in Tiantan Biologics. Obviously, the company's future industrial vaccine industry integration will give it greater room for growth.