According to Zhito Finance APP, Bocom intl released a research report stating that the second batch of national traditional chinese medicine decoction pieces collective procurement has started. On November 13, the National Traditional Chinese Medicine Decoction Pieces Alliance Procurement Office issued a notice announcing the launch of the second batch of collective procurement. This round of collective procurement will be expanded nationwide, including 45 varieties. Selected pharmaceutical products will be determined through comprehensive evaluation and competitive quoting in two stages, with a reduction of over 20% and a price difference of 1.2 times being the key factors for selection. The second batch of price governance for consumables and reagents has started nationwide, covering 10 tumor marker categories. Notably, the 10 tumor markers for this price adjustment overlap with the 27 provincial in vitro diagnostic reagent collective procurement categories recently led by Anhui Province.

The bank stated that, given the moderate overall price reductions in previous traditional chinese medicine collective procurements, it expects leading companies to achieve price-volume trade-offs in this round of procurement, with the industry's concentration expected to further increase. In addition, as two batches of price governance related to reagents are carried out nationwide, it is anticipated that more reagents and consumables will be included in the future. Recently, after a significant fluctuation, the pharmaceutical sector has seen a slight rebound. Considering that the sector's valuation is still at a historical bottom, combined with the subsequent bullish fiscal and medical insurance/private insurance policies and improved liquidity, the bank believes there is still room for further recovery.

Bocom intl continues to focus on recommending potential beneficiaries of medical insurance negotiations, including Akeso (09926), Simcere Pharma (02096), Legend Biotech (LEGN.US), and Junshi Biosciences-B (01952), which have rich short-term catalysts, high growth or clear breakeven points, and significant valuation recovery potential. It also suggests paying attention to: 1) private medical services and medical beauty stocks with strong consumer attributes; 2) small and medium-sized innovative pharmaceutical companies with valuations deviating from fundamentals, which will have considerable rebound elasticity after liquidity improvement; 3) pharmaceutical commerce circulation stocks with high dividend yields that are expected to benefit from the overall improvement of the industry's fundamentals.