As policies drive a surge in overlay demand, opportunities in the pharmaceutical industry will continue to emerge

From mid-August to date, the adjustment range of the pharmaceutical sector has reached about 10%, and the adjustment range of individual stocks such as vaccines has even reached more than 30%.
industry believes that the current pharmaceutical sector has gradually entered the layout of opportunities.
long term, medicine is still a good track.
policy dividend continues to release part of the sub-circuit is expected to benefit from the industry's behind the policy, with the consistent evaluation, with the normalization of volume procurement and other policies, the pharmaceutical industry will continue to change, forcing pharmaceutical companies to develop in the direction of innovative drugs.
data show that nearly 80% of China's trillion-dollar drug market is now generic, while only 20% of the country's innovative drugs are strongly promoted at the policy level.
the policy, the scale of innovative drugs will continue to expand in the next three to four years, and the industry increment will bring opportunities for innovative pharmaceutical enterprises to develop.
addition to innovative drugs, the medical device industry embraces tremendous opportunities.
with the national advocacy of "internal circular economy", the future domestic medical device import substitution will continue to accelerate, ushering in a very large space for development.
especially in the industry sub-sector orthopaedics, vascular intervention supporting materials, cardioelectrology, etc. there are many opportunities.
industry pointed out that from 2019, the pharmaceutical industry's policy dividend continues to release, the pharmaceutical industry sub-circuit contains raw materials, innovative drugs, medical services, health care and other 7 fine molecular industries, some sub-circuits may be available in the future opportunities, the relevant advantages of enterprises are expected to taste the sweetness.
under the trend of aging, medical and medical demand ushered in explosive growth from the point of view of demand, the pharmaceutical sector itself belongs to the strong domestic demand sector, the market is huge, high barriers to entry, but also has the characteristics of growth, profitability, anti-cyclical and so on.
with the aging of the population, the demand for pharmaceutical market will continue to expand.
industry predicts that from 2020-2023, it will be the peak of China's aging demand.
in the context of rising consumption, greater public attention to health care, and improved affordability of its medical department, demand in China's pharmaceutical and medical market will also see explosive growth in the coming years.
driven by this trend, some companies that have worked deep in the pharmaceutical and medical industry for many years and have mature product lines and performance support have increased their chips to strengthen their layout.
, for example, Hengrui, which starts with generic drugs, is increasing its investment in innovative drugs.
2017-2019, the company 2,759 million, 2.67 billion and 3.896 billion, respectively, accounting for 12.7%, 15.3% and 16.7% of current revenue, according to the company's data.
2020 third-quarter results showed that Hengrui Pharmaceuticals achieved revenue of RMB19,413 million, up 14.57% YoY, while net profit attributable to shareholders of listed companies was RMB4,259 million, up 14.02% YoY.
the company spent $3,344 million on research and development alone, up 15.35 percent year-on-year and accounting for 17.22 percent of current revenue, the fourth consecutive year of growth.
high-intensity research and development has brought it fruitful results, it is understood that Hengrui Pharmaceuticals this year has been approved 50 clinical trials.
can say that Hengrui has now entered a period of intensive harvest of new drugs, these innovative drugs in the future are expected to add momentum to performance growth.
well-known institutions such as Sogo Capital are also actively layout the pharmaceutical bio-track.
understood that since 2014, Gao's capital has supported pharmaceutical bio-circuit innovation enterprises in the fields of pharmaceutical and medical fields, including innovative drugs, pharmaceutical research and development outsourcing, ophthalmology, orthopaedics, oral medicine, assisted reproduction, etc.
conclusion, policy-driven overlay demand blowout, the future of the pharmaceutical industry structural opportunities will continue to emerge.
industry believes that, from a long-term logic, the pharmaceutical industry is entering a true golden decade, with the chance of demand release expected to continue 5-10 years from 2023.