Bull stocks that rose more than 10,000% fell continuously!

After the stock price reached its first limit in 8 months last Friday, on May 24, Changchun High-tech, known as "Northeast Yaomao", fell sharply again, closing at a rate of nearly 6%, and its total market value shrank to 173.

Coincidentally, on the same day, the biomedical sector of the Hong Kong stocks also experienced a collective decline, with CanSino, Rongchang Bio, CStone Pharmaceuticals, WuXi Biologics, etc.

What is the internal reason for the 100 billion "Big White Horse" limit?

Recently, the reason why Changchun Hi-tech has attracted attention is that market judgment may be affected by two negative expectations.

First of all, the Guangdong Provincial Medical Insurance Bureau recently issued a "Letter on Jointly Procuring the Procurement of Provincial Drugs and Consumables Ultrasonic Blade Alliance", and it plans to initiate a 16-province alliance with a large amount of procurement, which has caused heated discussions on the Internet.

Changchun Hi-tech is a leading enterprise of recombinant human growth hormone.

However, if we look at the essence through the phenomenon, the stock price of Changchun Hi-tech has plummeted, and the centralized procurement factor should only be regarded as a "fuse.

There are also optimistic views that although the General Office of the State Council issued the "Opinions on Promoting the Normalized and Institutionalized Development of Centralized and Mass Procurement of Drugs" in early 2021, the state is still actively exploring the mass procurement of Chinese patent medicines and biological drugs.

In fact, another reason for the continuous decline of Changchun Hi-tech this time is the reduction of shareholders' holdings during the sensitive period.

Speaking of Changchun Hi-tech, I have to mention the story that the well-known old lady invested 50,000 yuan and forgot her password in the middle of the process.

Through this typical case, it reflects the expectations and uncertainty of the industry and the capital market for biological drugs.

Biological medicine prices return to urge structural adjustment

The industry’s complex mood towards biomedicine is mainly derived from the current development of biomedicine.

With the increasing scarcity of chemical medicine resources, the industry is focusing more and more on the field of biological medicine.

Especially with the expiration of the patents of the original biologic drugs, the number of biosimilar drugs on the market is also increasing.

In fact, with the real arrival of centralized procurement, a basic logic is clear: the successive listing of biosimilar drugs will drive the overall average sales price of biopharmaceuticals to drop, which in turn will lead to a decline in total sales.

It should be said that domestic biopharmaceutical companies have gradually become competitive in terms of policy and technology.

However, from the European experience, there are still many games in the development of biopharmaceuticals.

It is said that Xiu Meile has extended the product life cycle through the strategy of setting up a patent wall.
It can be seen that the rise of biopharmaceuticals is facing a protracted offensive and defensive tug-of-war in the world.
However, the trend is the future, and biological medicine will also find a certain balance.

Will there be a golden age for biopharmaceuticals?

  Whether you like it or not, centralized procurement is an unavoidable proposition for biological drugs.
Capital market volatility is only the feedback of market sentiment.
What we really need to pay attention to is what risks will be generated in the future when the innovative and technologically complex biological drugs are included in mass procurement, and how to prevent and deal with it.
This is a need to establish a clear theory.
System and comprehensive institutional arrangements.

  After all, the high-quality development of biomedicine has been incorporated into the national strategy and has become the top priority of the "14th Five-Year Plan".
In some places, the speed has been increased.
On May 21, Shanghai issued the "Several Opinions on Promoting the High-Quality Development of the Municipal Biomedicine Industry", based on the establishment of a "R&D + clinical + manufacturing + application" industrial chain policy system, and strive to achieve the Shanghai biomedical manufacturing industry in three years The annual industrial output value reached 180 billion yuan.
At the same time, it is necessary to "expand the application" and accelerate the application and promotion of innovative products; while Guangdong Province has proposed to focus on promoting the "five tasks", including strengthening the support of technological innovation, and creating a first-class industrial innovation ecosystem in the Guangdong-Hong Kong-Macao Greater Bay Area.

  Statistics show that more than 90% of prefecture-level cities in China have biomedical companies, 30% of which are concentrated in 10 cities including Beijing, Shanghai, Guangzhou and Shenzhen.
So, what are the trends of biomedicine investment in 2021? From the perspective of capital flow, gene therapy is a more popular field.
In 2020, Bayer acquired AskBio for US$4 billion; Roche spent US$1.
8 billion to deploy gene therapies for central nervous system diseases and liver-oriented treatment.
However, some experts reminded that the prevention of fatal events caused by clinical trials of gene therapy is still a big challenge.

  The fields of gene editing and cell therapy are favored by domestic and foreign companies.
In 2020, domestic pharmaceutical investment and financing, 75 companies have conducted IPOs in an unprecedented year.
In December 2020, both heavenly creatures and legendary creatures were included in the Nasdaq Biotechnology Index.
Takeda also announced that by the end of 2021, it will cut costs by approximately US$2 billion per year, focusing on the next generation of cell therapies.
Not long ago, the application for the listing of Fuxing Kate CAR-T, a subsidiary of Fosun Pharma, entered the administrative examination and approval stage.

  But capital is very hot, and we need to be vigilant.
China is the most competitive region for PD-1 drugs.
Of the 154 PD-1s in the world, 85 are developed or jointly developed by Chinese companies, accounting for 55%.
Popular targets such as BTK and PARP are also areas where domestic innovative pharmaceutical companies are gathering in R&D, but there is still a lack of original innovation projects.
Perhaps places like Shanghai have recently proposed to build a national innovation strategic platform.
The goal is to strengthen high-level basic research in basic and cutting-edge fields around new targets, new sites, and new mechanisms, and establish national-level research-based clinical institutions.
It is the foundation of the future breakthrough of biopharmaceuticals and the true foundation of the golden decade.