China is a huge consumer market, and there are huge consumption opportunities in this market. Today, I would like to talk to you about the investment opportunities of China’s innovative drugs!
Innovative drugs can be understood as Western medicines or special medicines, or even medicines for serious diseases, mainly some medicines related to cancer. These medicines have a characteristic, that is, they are expensive and have a high technical threshold, which is the focus of research by many companies. Whoever launches a blockbuster drug will bring a great boost to the performance of the company!
China’s pharmaceutical industry is facing three problems, and there are also huge investment opportunities. Whoever can solve these problems will have a leading development advantage!
The first opportunity: if you break through the monopoly of foreign giants!
For innovative drugs, most of the market is currently monopolized by foreign countries. The reason is that it requires huge financial support for research and development. Generally, small companies do not have this strength. At present, domestic giants such as Hengrui Medicine, BeiGene, and China Biopharmaceutical have formed multiple product lines. , is competing with foreign companies for the market, but according to data, among the top 20 pharmaceutical companies in the world, there are still no domestic pharmaceutical companies, so this road is a long and arduous road, and it requires continuous accumulation to break through foreign monopoly.
At present, global and domestic drug research and development remain active, and innovative treatment solutions are gradually being commercialized. With the improvement of people’s living standards, the demand for medical care is also increasing. The proportion of Chinese companies in the global pharmaceutical research and development amount has reached 20%, ranking second in the world, second only to the United States, innovative drugs dominate the Chinese pharmaceutical market, and this is where the opportunity lies!
The second opportunity: centralized procurement in the domestic market!
The centralized procurement of medicines in the domestic market should be said to be a relatively big thing in the pharmaceutical industry in recent years. This is very good for pharmaceutical companies in the long run. First, centralized procurement can allow you to have a national market. As long as your medicines are effective, It can quickly expand the national market and turn it into economic benefits. Second, it can make pharmaceutical companies pay attention to R&D. In the past, pharmaceutical companies had a lot of expenses, but they were all rebates to doctors. After centralized procurement, this part of the funds is used for R&D. , in the long run, it will form a barrier, and finally let the effect of the drug speak! Therefore, in the face of the huge domestic market, the final competition is the effect of the drug, which is fair to all R&D companies, and this is where the opportunity lies!
The third opportunity: the huge domestic consumer market!
Nowadays, many elderly people spend more on medicine than food. If this market is monopolized by several companies, the profits of the future companies will also be considerable. More importantly, this large market can be subdivided into many small industries, as long as If you do a good job in this sub-sector, there will be enough development space for a company. You can be the first in the province, then the first in the region, then the first in the country, and finally the first in the world. Companies with R&D strength stand out!
The above are the three major opportunities for China’s innovative drug industry!
At present, for investment opportunities in the innovative drug industry, my personal recommendation is the preferred fund, because they are more familiar with this industry than we are.
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Hong Kong stock innovative drug index fund, the top ten stocks with heavy holdings, the fundamentals include relatively powerful domestic innovative drug companies, such as CSPC, BeiGene, China Biopharmaceuticals, Innovent Bio!
There is another index, the CSI Innovative Drug Index. This index basically includes the leading companies in A-share Hong Kong stocks, and it is also very worthy of reference!
Faced with factors such as huge population size, aging and people’s pursuit of health, the long-term development space of the pharmaceutical industry is very broad and the demand is huge, and technological innovation has provided endogenous growth momentum for the pharmaceutical industry. All rises are followed by callbacks, but the center of the index continues to rise. For high-quality companies and indexes, every adjustment is a good opportunity!
$ Hengrui Medicine (SH600276)$ $ Hong Kong Stock Innovative Drug ETF (SH513120)$ $ Innovative Drug ETF (SH515120)$
@ @Today’s topic #Building the bottom may end! How to grasp the new inflection point of the innovative drug sector? #
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