With the volume of procurement air raid pharmaceutical sector market value evaporated nearly 300 billion

The impact of volume procurement on pharmaceutical stocks has not dissipates. After falling sharply in the last two trading days of last week, the index jumped again on Monday, falling 1.73 per cent.
specific stocks, Shanghai Lais, Lepu Medical, Furen Pharmaceuticals fell, China Resources Shuanghe, East China Pharmaceuticals fell more than 7%, Puli Pharmaceuticals, Bayda Pharmaceuticals fell more than 5%. As of yesterday's close, in the last three trading days, Lepu Medical, East China Pharmaceuticals, Furen Pharmaceuticals, Puli Pharmaceuticals stage fell by more than 20%, and the overall market value of the A-share pharmaceutical sector also evaporated by nearly 300 billion yuan.
because pharmaceutical stocks are the heavy positions of the fund in recent years, from the public trading information of Lepu Medical and East China Pharmaceuticals in the last three trading days, we can see that the institutional seats are dominated by net selling. However, as the rapid decline in pharmaceutical stocks led to a rapid decline in valuations, market pessimism gradually showed signs of easing, there is no shortage of funds to absorb lows, of which the deep stock pass seats are relatively active.
December 10, East China Medicine Dragon tiger list shows that in the last three trading days, the three institutional seats totaled a large reduction of 335 million yuan East China Medicine, but one institution at a low absorption of more than 30 million yuan. The Shenzhen Stock Pass seat sold 115 million yuan at the same time, but also bought 0.96 billion yuan; In addition, COG's Shanghai Huangpu District Lakeside Road Business Department, Gaohua Securities Beijing Financial Street Business Department, etc. have bought more than 0.3 billion yuan.
Three consecutive stops of the Lepu Medical Dragon Tiger list shows that in the past three days encountered a total net reduction of 305 million yuan by three institutions, Shenzhen Stock Exchange seats in the reduction of 0.96 billion yuan at the same time increased their holdings of 0.78 billion yuan, CITIC Securities Beijing headquarters business department is also left and right, in the sale of 0.85 billion yuan to buy back 0.47 billion yuan. In addition, as Lepu Medical fell yesterday, on-site institutions scrambled to escape, but two institutional seats joined forces to increase their holdings by more than $75 million.
the negative impact of volume procurement, many relevant listed companies have given a positive response. East China Pharmaceuticals last night issued an announcement that the company's cumulative share price has fallen by more than 20% in the past three trading days, and that the company has no disclosures to disclose. East China Pharmaceuticals pointed out that the recent announcement of the results of the national drug centralized procurement pilot will not have a direct impact on the 2018 business, the company does not expect the overall operating performance in 2019 will not be affected by the national drug centralized procurement, can still maintain steady growth on the basis of 2018, the existing core products in the future still have strong market competitiveness and better import alternative market opportunities.
, which has been significantly affected by the policy, quickly convened a conference call on December 6th, attending 804 institutions and more than 1,400 participants. Lep Medical made it clear that it was not concerned about the impact of national drug belt procurement. The company said that although the winning bid for the volume (estimated 50%) procurement target, but will also participate in 11 cities with the remaining 50% of the market share, in accordance with the requirements of the ladder price reduction, the company may be able to obtain 15% to 20% of the share, is expected next year in 11 cities of the medical institutions market share, compared to the current growth.
is worth noting that in this volume of procurement under the impact of the short, there are still a few pharmaceutical stocks fell not much, and even rose against the market. Such as the recent record high of Shandong drug glass three days cumulative only slightly down 0.3%, Zhao Yan new drugs even slightly up 0.66%. Yesterday's market also showed that pharmaceutical stocks have shown some differentiation, Hengrui Pharmaceuticals (600276, stock bar) red rose 1.06%, Tonghua Dongbao, Kangyuan Pharmaceuticals, etc. rose more than 2%.
Henyep Securities pointed out that due to the large decline in the volume of procurement, more than expected, and price disclosure can be queried, whether other provinces will adopt "price linkage", thus forming a nationwide reduction in the relevant varieties of prices worthy of attention. Moreover, with the landing of the volume procurement policy and the subsequent gradual promotion can be expected, the price of the volume purchase will gradually cycle downwards, the excess profits of generic drugs will be gradually squeezed, this volume procurement on the valuation system of generic drug companies will indeed have a certain impact.
Overall, brokerage industry analysts mostly believe that this policy on the pharmaceutical sector constitutes a certain negative, investors need to digest for some time, but in 2019 the pharmaceutical sector after a significant decline still has opportunities, mainly some sub-sectors not affected by the policy, including innovative drugs and innovative devices, blood products, vaccines and other sectors; (Securities Times)