Recently, to achieve a big rebound at the bottom of the plate, in addition to the Internet, the automotive industry, there is also the biotechnology industry.

As you can see, the industry has rebounded strongly by nearly 27% since its bottom on May 10, and continued to rise at the start of trading today.$Kangfang Bio-B (09926.HK) $Up more than 100% from the bottom$Wuxi Biologics (02269.HK) $Rebounded from nearly 50%$Wuxi Apptec (02359.HK) $Rebounded nearly 18% from the bottom.

For the recent strong rise, what do the institutions think?

Driven by innovative market dividend and engineer dividend, the CRO/CDMO industry is expected to remain prosperous.

CITIC believes that the global innovative drug R & D industry is still very prosperous, and domestic CXO companies have benefited from the innovation wave of the global biomedical industry, as well as the strong pre-clinical / clinical R & D demand of domestic innovative pharmaceutical equipment and new treatment technology companies.

According to Pharmaprojects, the number of global R & D pipelines (including preclinical and clinical stages) reached 20109 in 2022, exceeding 20,000 for the first time in history, an increase of 8.22% year-on-year.It nearly doubled from 4.76% in 2021 (CAGR was 5.7% in 2018-2022).

At the same time, the domestic head company's newly signed / on-hand orders are still full.$Zhaoyan new drug (06127.HK) $In 2021, newly signed orders exceeded 2.8 billion yuan, an increase of about 69% over the same period last year, and on-hand orders exceeded 2.9 billion yuan, an increase of about 71% over the same period last year.$Tigermed (03347.HK) $In 2021, the amount of new contracts was 9.645 billion yuan, an increase of 74.22 percent over the same period last year, and the total amount of contracts to be executed was 11.405 billion yuan, an increase of 57.09 percent over the same period last year.

And in the post-epidemic era, domestic CXO enterprises can use the capital market to accelerate the expansion and integration of the upstream and downstream of the industrial chain and global industrialization (for example, the recent Zhaoyan new drug announcement plans to buy two experimental model animal companies with about 1.8 billion yuan), the layout of the integrated platform / whole industry chain is expected to be strengthened.

Companies are also constantly integrating into the global pharmaceutical innovation business.$Wuxi Apptec (02359.HK) $Recently announced a production partnership with US biotechnology company Wugen on a new immune cell therapy, WU-NK-101, which uses natural killer (NK) cells from immune memory to treat tumors. The layout of globalization has gone further.

In the medium and long term, the epidemic has accelerated the development of new treatment technologies, and the requirements of new technologies for process development and trial design have been improved. China's CDMO industry is expected to rely on the continuous accumulation of early pipelines in the field of global biomedical innovation technology.

At present, the industryGrowth engine已Entering the dual-core driven era of "engineer dividend" + "leading innovation dividend", the long-term outsourcing rate of the industry and the ceiling of Longtou city are expected to increase.

Q1 in 2022, the industry as a whole still maintains strong revenue and profit growth, and the boom is still rising.

COVID-19 small molecule oral medicine continues to promote, it is suggested to pay attention to related enterprises and upstream industry chain

On the other hand, COVID-19 oral drug MPP authorization company has been released one after another, the upstream industry chain (starting material → intermediate → API/ preparation) is expected to usher in a large increase in demand, it is expected that the relevant orders / performance is expected to begin to reflect gradually in half a year.

On January 20, 2022, the Geneva Drug Patent Pool Organization (Medicines Patent Pool, MPP) announced the signing of agreements with 27 imitation pharmaceutical companies.Merck & Co Inc's oral COVID-19 antiviral drug Molnupiravir is produced and supplied in 105 low-and middle-income countries.

A total of five pharmaceutical companies in China have been authorized, namely$Borey Pharmaceutical (688166.SH) $、$Shanghai Fosun Pharmaceutical (02196.HK) $、$via creature (01873.HK) $, Diseno and Longze Pharmaceuticals.

On March 17, 2022, the Geneva Drug Patent Pool announced that it had signed agreements with 35 imitation pharmaceutical companies.Allow it to produce one of the ingredients of Pfizer Inc's new oral drug, Paxlovid, nirmatrelvir API or preparation.

A total of five Chinese enterprises have also been selected, namely, Disano, Huahai Pharmaceutical, Puluo Pharmaceutical, Shanghai Fosun Pharmaceutical and Jiuzhou Pharmaceutical, of which Jiuzhou Pharmaceutical produces APIs and the other four can produce APIs and preparations at the same time.

Relatively speakingDomestic COVID-19 small moleculeThe drug is also stepping up its research and development.Many products are in the stage of IND or clinical research.

According to the company announcement and public information$Development Pharmaceutical Industry-B (09939.HK) $The global III study data of Pucruamide have been blinded; the III data of the real organism Azvudine have not been released yet.$Junshi creature (01877.HK) $VV116 Ⅲ phase clinical reached the preset main end point; frontier biological FB2001 will conduct an international multicenter II/III phase study.$Xiansheng Pharmaceutical Co. (02096.HK) $SSD8432 domestic phase I clinical has completed the first patient enrolled in the group, and the IND application of Ruichuang RAY1216 in China was accepted by NMPA on May 11.

$Golly Pharmaceuticals-B (01672.HK) $、Genting Xinyao-B (01952.HK) $、$Wuxi Apptec (02359.HK) $COVID-19 small molecule drug candidates from companies such as Kexing Pharmaceutical and Guangsheng Zhonglin are currently in the stage of preclinical research.