Biomedicine upgrade again

Biomedicine upgrade again

The Ministry of Health issued the Essentials of Health Work in 2012 on February 2. In 2012, it will further improve the new rural cooperative medical system and promote the comprehensive reform of grassroots medical and health institutions in accordance with the requirements of basic maintenance, strong grassroots, and building mechanisms; at the same time, expand the country The scope of implementation of the essential medicine system, promote the implementation of the national essential medicine system in village clinics, encourage local governments to purchase services, etc., and gradually include non-governmental grassroots medical and health institutions into the scope of implementation; complete the national essential medicine catalog applicable to medical and health institutions at all levels (2012 version) formulation work to regulate local supplements of non-catalog drugs.

The expansion of China's medical insurance is the general trend, and more policies help promote it; while biotechnology drugs are gradually becoming a trend, and the expiration of patents provides major opportunities for China's generic drugs. Therefore, opportunities exist in the biopharmaceutical industry.

Medical insurance coverage, policy boost

From the point of view of behavior analysis, the expansion of China's medical insurance is the general trend, coupled with domestic policies to assist biomedicine, it will definitely bring huge development opportunities to the industry. For example, on November 28, 2011, the Ministry of Science and Technology released the "Twelfth Five-Year Plan for Biotechnology Development". On December 26, the Ministry of Science and Technology and the Ministry of Human Resources and Social Security and other six departments issued the "National Medium and Long-term Biotechnology Talent Development Plan (2010-2020)". In less than a month, two consecutive national development plans directly pointed to "biotechnology", indicating that the state will increase its support and promote the bio-industry into a pillar industry of the national economy. Especially when medical insurance is being covered by the whole people, the basic medicine catalogue will be expanded, and a large amount of demand is gradually erupting. Therefore, there are greater opportunities in the biomedical industry.

From the perspective of capital preference, the performance of listed companies in the biopharmaceutical category has always been relatively stable and has always been valued by public funds. Once the expected demand is erupting, they will certainly be able to attract them to use funds to enter the market.

Industry Force

Biotechnology drugs are gradually becoming a trend, and patent expirations provide major opportunities for China's generic drugs. As the difficulty of creating new chemical drugs increases, biotech drugs have gradually become an important source of innovative drugs. According to the plan, it is expected that by 2020, biotech drugs will account for more than one-third of all drug sales revenue. Following the clopidogrel, losartan, donepezil, tamsulosin and enoxaparin in 2010, in 2011 there were 6 heavyweight world-famous patented drugs that expired one after another. Therefore, in 2011, the international pharmaceutical industry regarded it as the best-selling patented drug manufacturer's "Year of Wheat". However, in the development and production of generic drugs, Chinese companies have accumulated decades of rich experience. At present, a large number of expired patented drugs are a rare business opportunity for domestic API manufacturers. Therefore, the biomedical industry deserves medium and long-term attention.

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