A large number of pharmaceutical enterprises will usher in a period of concentrated harvest in the transformation from pharmaceutical enterprises to innovation

[industry trends of pharmaceutical network] there are many generic pharmaceutical enterprises, low industry concentration and high drug price in China's pharmaceutical industry In September 2018, for the first time, China organized drug pilot centralized joint procurement from the national level, which opened the prelude to the integration of China's pharmaceutical industry, and the industry began to enter a painful period It is understood that while China is intensifying the shuffling of the pharmaceutical industry, the volume purchase policy also forces pharmaceutical enterprises to increase R & D and transform to innovation simultaneously It is understood that in the first three quarters of 2019, 118 of the 165 pharmaceutical enterprises (including chemical pharmaceutical, traditional Chinese medicine and biological products, excluding some enterprises whose data cannot be counted) in A-share of China have increased their R & D investment compared with last year, accounting for about 70% In the first three quarters of this year, the R & D expenditure of these 118 enterprises increased by 37.60% on average With the increase of investment in innovative research and development, a large number of pharmaceutical enterprises have recently indicated that innovative drugs will enter the period of centralized harvest Treasure Island: it is expected to usher in the centralized harvest period of chemical and generic drugs in 2021-2023 Chen Hai, general manager of treasure island, visited e company in the securities times According to a micro interview, the company is developing more than 70 chemical and generic drugs and innovative drugs In 2020, it is planned to establish 2-5 innovative and improved new drug projects It is expected that in 2021-2023, there will be a concentrated harvest period of chemical and generic drugs, including some high-end generic drugs with market and difficulty, focusing on cardio cerebrovascular, respiratory system and other fields In terms of Biopharmaceutics, the company has completed the investigation and demonstration of more than 20 biopharmaceutical projects Treasure Island Biopharmaceutics will focus on tumor, anti infection and other fields, with monoclonal antibody, ADC and double antibody products as the main line Hisilicon will usher in the harvest period of innovative drugs in 2020 Hisilicon has rich R & D pipelines and broad long-term development space The company's innovative drugs are characterized by endogenous R & D by the beginning of 2020, the company's innovative drug pipeline is expected to have 6 molecules in the clinical stage, including 2 in phase III and 1 in phase II It is expected that the company will apply for 2-3 inds every year in the future, and 1-2 new drugs (indications) are approved, so the road of transformation of innovative drugs will become wider and wider It is estimated that the company's net profit attributable to the parent company in 2019-2021 will be 511 million yuan, 646 million yuan and 848 million yuan respectively, with a year-on-year growth of 53.3%, 26.4% and 31.3% respectively; the company will be valued by business segments in the industry, with DCF of innovative drugs valued at 14.86 billion yuan and generic drugs valued at 16.3-19.5 billion yuan Hengrui medicine: the innovative medicine sector has entered the harvest stage After years of layout, the innovative medicine of Hengrui medicine has entered the harvest stage At present, the company has 6 innovative drug products, including PD-1 and pyrrolidine, which have formed a good situation of 1-2 innovative drugs listed every year The rapid release of innovative drugs has become a new driving force for the company's growth It has become a solid driving force for the long-term development of the company to enrich the pipeline reserve under research According to the industry, the growth rate and net interest rate of the company's generic sector may face certain pressure since 2020 due to the centralized purchase and price reduction, but the rapid growth of the company's innovative pharmaceutical sector will offset the pressure of the generic business to a certain extent, which is expected to drive the company's stable performance growth At present, fluzopali, a PARP inhibitor of the company, has applied for NDA Eight new drugs are in the clinical phase 3, and more than 30 drugs are in the early clinical phase (phase 2 or phase 1) The target layout is perfect in domestic pharmaceutical enterprises, and the progress is in the leading state in China The industry is firmly optimistic about the long-term development driven by rich innovation in research and reserve Xinda bio-b is ready for the harvest of tumor drugs Xinda bio has a R & D pipeline including 20 varieties, covering four major diseases such as cancer, fundus diseases, autoimmune diseases and cardiovascular diseases Under the dual promotion of clinical demand and medical insurance payment, China's tumor innovative drugs will enter the harvest period in 2019 As the head company of PD-1 in China, Xinda biology has entered the stage of rapid growth of varieties with medical insurance and good commercialization ability It is estimated that from 2019 to 2021, the company's sales revenue will be RMB 90 million, RMB 2.16 billion and RMB 4.14 billion respectively The profit and loss balance will be achieved in 2022