Event: 2019 China Biotechnology Innovation Conference was held on November 3 in Chengdu, Sichuan. At the meeting, the Department of Social Development Science and Technology of the Ministry of Science and Technology and the China Biotechnology Development Center released a report showing that the market scale of China's biopharmaceutical industry in 2018 has exceeded 350 billion yuan, **** there are nine independently developed Class 1 new drugs approved for listing.
With the gradual promotion of the new policy of drug review and approval since 2015, the review backlog has significantly improved, and the number of innovative drugs declared by enterprises and the number of varieties approved have significantly improved compared with the previous.
The field of innovative drugs is gaining momentum
Policy support
From 2012-2017, the global pharmaceutical market had a compound annual growth rate of about 3.2%, and the preliminary statistics of the global pharmaceutical market size of $1.17 trillion in 2018 is expected to be reached by 2019, the global pharmaceutical market size will exceed 1.2 trillion U.S. dollars.
The domestic pharmaceutical policy environment is driving the pharmaceutical industry from "generic-driven" to "innovation-driven". Since August 2015, the State Council's top-level design "to accelerate the review and approval of innovative drugs", from R & D to sales, supporting the encouragement of a myriad of policies:
1) accelerated review and approval: the inclusion of innovative drugs in the priority review of the direct shortening of the time-to-market of the new drug, to accelerate the time of profitability of the new drug, disguised as a new drug to extend the life cycle, directly increase the enthusiasm of pharmaceutical companies to research and develop new drugs. Directly improve the enthusiasm of drug companies in new drug research and development;
2) health insurance negotiation access: innovative drugs can enter the health insurance directory through the health insurance negotiation after the listing of new drugs to accelerate the speed of new drug release, the future dynamic adjustment can be expected;
3) supporting policies: the listed licensee system, the registration of new chemical drugs classification and other supporting policies for innovative drugs, to encourage innovation, especially to encourage "true" innovation.
3) supporting policies: listed licensee system, new chemical drug registration classification and other innovative drug supporting policies, to encourage innovation, especially to encourage "true" innovation. "In October 2017, the two offices released "State 36", encouraging innovation is rising to a high level.
Increased capital investment
In 2018, China's medical industry completed a significant increase in the size and number of financing, reaching a record high. And from the percentage point of view, the number of investments in the R&D and production side of pharmaceuticals and medical devices (including innovative drugs, medical devices, in vitro diagnostics research and development and production areas) has increased significantly, and the number of financing for innovative drug projects has increased by 102.7% compared with 2017.
Looking for the "water seller" in the field of innovative medicine
Understanding the future development trend of innovative drugs, policy support and capital investment, the author believes that the great outbreak of innovative drugs has already had the The first time I saw this is when I was in the middle of the night. Of course, as a capital market investor, such industry wind mouth must be worth digging. However, we are not going to work on the innovative drug companies themselves, but to open up new paths, looking for innovative drug research and development on the road "water seller" - innovative drug preclinical safety evaluation service providers.
What is a "water vendor"? This kind of company is to provide drug evaluation services for innovative drug companies, such companies in the big pharmaceutical industry positioning is in the front of the industrial chain, regardless of the success of the development of innovative drugs, the field will be the first to share the future of innovative drug research and development of the front-end opportunities. The simple and crude understanding is that the relationship between the "gold digger" (innovative drug development enterprises) and the "water seller" (innovative drug preclinical safety evaluation service providers).
Why are we more optimistic about preclinical safety evaluation service providers of innovative drugs?
The core reason is three: 1) the performance of the high explosive: encourage innovative drug policy frequently brought innovative drug boom, as long as the domestic R & D investment increased, will be transformed into CRO and other innovative service providers performance outbreaks, and look at the trend of 17, 18 years, the performance of the performance of the outbreak will be extremely violent; 2) performance outbreak of the timeliness of the performance: innovative service providers performance The outbreak of the former bit in the approval of innovative drugs, drug companies began to vigorously invest in research and development stage, the performance of innovative service providers began to explode; 3) the outbreak of the performance of the certainty: do not care whether the innovative drugs are ultimately approved, innovative service providers in the process of research and development of innovative drugs, the performance of the cash, relative to the innovative drugs, the risk of smaller.
Where are the "water sellers"?
The company is a leading company in preclinical safety evaluation services. The main business is drug preclinical research services and the breeding and sale of laboratory animals, of which drug preclinical research services is the company's core business.
Performance is currently in a state of high growth, as the domestic preclinical R & D outsourcing leader, continued expansion of production capacity, and continue to strengthen the construction of personnel team, the orders on hand sufficient, the performance of the year high growth can be expected. The company has a large number of outstanding orders, which are expected to be recognized in Q4 or early next year, the performance is expected to further enhance the stock price.
The company is a leading pharmaceutical R&D services company, dedicated to providing drug R&D outsourcing services for global pharmaceutical companies, biotech R&D companies and research institutes. The company occupies the third largest share of the global drug discovery market and ranks second in terms of revenue scale among local CRO enterprises, which has a good market foundation. The company's main customers are basically well-known global pharmaceutical companies, the source of customers to maintain a stable, and has a high customer barriers.
(Source: Jufeng Finance)
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