Market Analysis: There are two highlights of chemical raw materials

Business Club November 22 hearing A shares market rose yesterday, the formation of pharmaceutical stocks led the rising trend. The pharmaceutical raw materials, such as Haixiang Pharmaceutical Co., Ltd. and Tianya Pharmaceutical Co., Ltd., topped the list, reflecting the development momentum of chemical raw material medicines that received funding recognition.

Gradually show two major business highlights

From the perspective of the development of the global pharmaceutical market, after experiencing a rapid recovery after the trough in 2008 and the first half of 2009, industry insiders predict that the global pharmaceutical market will grow at an average annual rate of 5% on the basis of US$837 billion in 2009. ~8%. Three of these areas are eye-catching, with growth rates higher than global drug growth. First, the growth rate of generic drugs was 12.5%, which was 6 percentage points higher than the growth rate of global drugs, driving the growing market share of generic drugs; Second, the rapid development of generic drugs led to a growth rate of 11.4% for generic drug substances, which was much higher than that of original drug substances. The growth rate of 1.8%; Third, biological products growth rate of more than 10%.

It can be seen that the current chemical raw materials medicine is facing an excellent opportunity for the development of the industry, and in the course of development, there have also been two clear business highlights: exports have emerged a new strong growth momentum of drugs. For example, 4-AA (4-Acetoxy azetidinone), the chemical raw material drug is an important pharmaceutical intermediate product, is the production of all "carbopenem" antibiotics (ie "Peinan" ) The main raw material of raw materials. In the 1990s, only Japan had the ability to produce 4-AA. However, a group of Chinese companies represented by Haixiang Pharmaceuticals has mastered this core process, and due to the fact that the cost of artificial and raw materials is lower than that of Japan, the price is only 1/4 to 1/3 of that of imported products. AA gradually moves into the international market. Since 2006, China’s export 4-AA has grown significantly, with a compound annual growth rate of 170% and a compound annual growth rate of export volume of 127%. Similar varieties are also reflected in vitamin series medicines.

Environmental pressure has accelerated the shuffling process of chemical raw material companies. As China has gradually paid attention to environmental protection in recent years, chemical raw material medicines that originally relied on low environmental costs have entered the process of accelerating reshuffling. Taking corticosteroids as an example, due to the increase of environmental pressure, the price of raw material saponin has soared, rapidly soaring from more than RMB 200,000/ton to RMB 550,000/ton, which has caused a batch of chemical raw material medicine companies with unobvious cost advantages to withdraw from the market. This has brought new market space to leading companies such as Tianya Pharmaceutical Co., Ltd. and Xianye Pharmaceutical Co., Ltd., and expanded profitability expectations.

Concerned about the "late comers"

Based on the above factors, the current pharmaceutical industry analysts have gradually raised concerns about chemical raw material drug companies, which is conducive to institutional funds concerned about the investment opportunities of chemical raw material drugs.

During the operation, investors are advised to actively pay attention to two types of stocks: the trend of product structure adjustment, or the varieties that have been walking in the high-growth track, such as Haixiang Pharmaceutical, Hisun Pharmaceutical, and Xianyi Pharmaceutical; the performance is expected to reverse Chemical raw material stocks, including Lukang Pharmaceutical, North China Pharmaceuticals, Jingxin Pharmaceutical, Tianyao and other varieties. Among them, Jingxin Pharmaceutical's share capital is small, and its performance is flexible and can be tracked.