Alert! The U.S. Brewing Biomaking Act: Full of malicious intent on CXO, but hidden in a big opportunity

News on September 11 that U.

(Screenshot of Bloomberg News report)

Details of the order, which have not been made public, lay out a strategy to boost domestic manufacturing, using biological systems to create a range of products and materials, from new drugs and human tissues to biofuels and food

Improving domestic biomanufacturing will ultimately lower prices and strengthen supply chain security

From the perspective of pharmaceutical manufacturing, based on the favorable environment in 2010-2019, the number of registered factories producing APIs in China has more than

01 Highlight synthetic biology, which is essentially an anxiety about the "energy revolution"

01 Highlight synthetic biology, which is essentially an anxiety about the "energy revolution"

According to people familiar with the matter, Biden's executive order will outline how the United States should train a trained workforce capable of harnessing naturally occurring processes to make bio-based products and materials

This undoubtedly proclaims to the world the importance of

As we all know, oil is also known as the "blood of industry", and the two largest economies, China and the United States, are the first and second largest oil importers

Petrochemical materials have emerged since the 20th century, and have gradually become the main materials

According to a report released by the McKinsey Global Institute, 60% of the material products in global economic activity can be produced through biotechnology, involving a market size of up to $

For example:

For example:

The raw materials of the degradable plastic product PHA are derived from renewable substances such as corn starch, aged grains, vegetable oils, waste cooking oils, etc.

Huaheng Biology, a listed company in synthetic biology, the core raw materials for 2017-2020H1 are glucose and corn starch

Glucose is the product of hydrolysis of corn starch, which in turn is produced

Therefore, as long as the grain containing rich starch can be used to prepare corn starch, such as rice, flour, corn, sweet potatoes, potatoes, etc.

02 If the restrictions take effect, the external environment of the CXOs deteriorates again

02 If the restrictions take effect, the external environment of the CXOs deteriorates again

Bloomberg said the U.

CXO: "You might as well report my ID card directly.

If you want to judge which link in the future is most affected by the potential bill, it is undoubtedly the CDMO responsible for manufacturing, preclinical research & clinical research is more of a service, both of which rely more on talent prices, involving a small amount of infrastructure investment, and other countries can not be replaced

Undoubtedly the CDMO responsible for the manufacturing end,

● A large number of subsidies into the pockets of large enterprises, small and medium-sized biotechnology companies benefit less; What's more, some data show that 72% of drug manufacturers in the United States are overseas, of which 13% are in China
.
Chinese CXO companies, led by WuXi Biologics, are also increasing investment and increasing overseas production capacity to avoid the risk
of customer loss caused by geopolitics as much as possible.
Singapore has become a "promised land"
in the eyes of biomedical companies.

What's more, some data show that 72% of drug manufacturers in the United States are overseas, of which 13% are in China
.
Singapore has become a "promised land"
in the eyes of biomedical companies.

For example, in February, Kingsley Biotech officially announced that the company's Asia-Pacific department of Singapore production and research and development base was officially put into operation, which has more than 30,000 square feet of highly automated protein production and gene synthesis service equipment; On June 15, Kexing Group plans to invest more than S$2 billion (equivalent to more than 10 billion yuan) to set up research facilities and international business headquarters in Singapore; On July 19, WuXi AppTec announced that it is expected to invest S$2 billion (approximately RMB9.
73 billion) in Singapore over the next decade to establish R&D and production facilities
.
In addition, there are also Chinese biopharmaceuticals, Fosun Pharma, Xingeyuan and other companies that have landed
in Singapore.

Like what:

03 Supply chain competition, the rise of domestic upstream suppliers

03 Supply chain competition, the rise of domestic upstream suppliers

Referring to the UNITED States' approach to the chip industry, it is necessary to guard against the repetition of the same tricks in the biotechnology industry, including: restricting medical companies from investing in China, restricting American companies from selling high-tech raw materials & components to Chinese companies
.
"Sanctions" is a seesaw, in the short and medium term, import suppliers of enterprises will inevitably usher in pain, but in the long run, the shortage of supply will force technological innovation and fixed asset investment, and ultimately achieve a jump
in competitiveness of enterprises.
In the past, the Ministry of Industry and Information Technology has listed 35 key technologies for China's stuck necks, including microspheres and medical imaging equipment components
that are highly related to the biomedical industry 。 In these two fields, there are leading domestic enterprises to open breakthroughs, such as nano micro technology to break through the precision manufacturing technology problems of microspheres, and began to replace Japanese products in 2017; Lianying medical parts self-research progress is not small, such as ct equipment the most core parts of the ball tube, the company has been able to produce a small number of self-produced ball tube; Yirui Technology is one of the few manufacturers in the world to master digital X-ray detectors, and its main products have occupied a certain market share in the global market
.

Nano Micro Technology Lianying Medical Yirui Technology

Not only that, in the increasingly important global context of "independent and controllable supply chain", the current situation that some domestic medical consumables and equipment are highly dependent on imports has attracted widespread attention
.
From artificial blood vessels, various surgical sutures, to high-end equipment such as pacemakers and ECMO (extracorporeal membrane oxygenation), and then to life science research reagent consumables, there are opportunities for rise, such as (detailed visible figure): high-end scientific research instruments such as the sequencer field to break the import monopoly of BGI Intelligent Manufacturing, mass spectrometer field such as Concentrating spectroscopy technology, etc.
;

BGI Intelligent Manufacturing Concentrating's Spectrum Technology

Scientific research reagents / biopharmaceutical raw materials such as IVD raw materials core suppliers Ofwizan, Fei Peng Biological, media fields such as Opmei, Auscom, disposable reactors / bags such as Dongfulong, Chutian Technology, Doning Biology, etc
.

Novizan, Fei Peng Bio Oper Mai, Auscon Dong FuLong, Chu Tian Technology, Doning Bio

In the long run, combined with performance growth, policy & industry environment, valuation and other factors, life science upstream companies are most likely to have structural large investment opportunities
before the end of this medical and health sector adjustment.

Conclusion: What domestic medical and health companies can do is not to waste this crisis
.
Every crisis is a stress test, and there are hidden opportunities
.
Domestic power will eventually rise
.

Epilogue: