The Zhitong Finance App learned that on November 10, due to news that the API industry ushered in sector-based investment opportunities, A-share pharmaceutical stocks fluctuated and rose. As of press release, Tuoxin Pharmaceutical (301089.SZ) rose more than 13%; Hainan Pharmaceutical (000566.SZ) rose and stopped; Fengyuan Pharmaceutical (000153.SZ), Hengrui Pharmaceutical (600276.SH), Hanyu Pharmaceutical (300199.SZ), Kangyuan Pharmaceutical (600557.SH) and other stocks rose.

On November 9, according to the NDRC website, the National Development and Reform Commission and the Ministry of Industry and Information Technology issued the “Notice on the Implementation Plan for Promoting the High-Quality Development of the API Industry”. The development goal is to develop a number of high-value-added high-growth varieties by 2025, break through a batch of green and low-carbon technology equipment, cultivate a group of leading enterprises with international competitiveness, and build a number of industrial clusters and production bases with global influence. The innovative development of the API industry and the level of advanced manufacturing have been greatly improved, green and low-carbon development capabilities have improved markedly, and the resilience of the supply system has been significantly strengthened, providing strong support for the development of the pharmaceutical industry and forging a unique foundation for international competition and cooperation.

According to the Dongwu Securities Research Report, there are frequent API policies, which favors the concentration of the industry on leaders: following the release of the new API policy by NMPA in November 2021, the collection of information on API production and supply began. The country frequently publishes industrial policies related to APIs, and the two powerful departments of the Development and Reform Commission and the Ministry of Industry and Information Technology have issued a joint document, which once again shows the importance that the country attaches to the API industry. The main tasks for the development of Chinese medicines in this notice include technological innovation and upgrading, green and low-carbon transformation of the industry, concentrated development of industries, and breakthroughs in major equipment research, etc., to benefit industry leaders.