SW pharmaceutical and biological industry lost the CSI 300 index for the same period. From December 11 to December 24, 2023, the SW pharmaceutical and biological industry fell 4.34 percent, losing about 2.51 percentage points to the CSI 300 index over the same period.

among the three sub-sectors of SW pharmaceutical and biological industry, all sub-sectors recorded negative earnings, with offline pharmacies and traditional Chinese medicine sectors falling less, by 0.37 per cent and 2.12 per cent respectively. Other biological products and blood products sectors led the decline, down 6.00 per cent and 4.17 per cent respectively.

Industry news. In order to further reduce the false high price of clinical test reagents, on the morning of December 20, Anhui Provincial Medical Insurance Bureau took the lead in carrying out the centralized procurement of in vitro diagnostic reagents in 25 provinces (autonomous regions and corps). Preliminary statistics, this collection than the highest effective declaration price of the average decline of about 53.9, the annual savings of nearly 6 billion yuan. According to reports, the centralized purchase price declaration with quantity was conducted in an offline public way, with representatives of more than 130 enterprises participating in the price declaration.

to maintain the industry's overweight rating. In the past two weeks, the trend of the pharmaceutical and biological industry has been weak, and all sub-sectors have recorded negative returns. The blood products sector with better trends and the early hot sectors such as influenza, weight loss drugs and Alzheimer's disease have all experienced a large correction. On December 18, the General Office of the National Health Commission issued a notice on the inspection work plan for large hospitals (2023-2026), which further hit the sentiment of the sector. At present, the industry is at a relatively low level of sentiment and valuation. Follow-up suggestions should pay attention to investment opportunities in sectors such as medical services and blood products that are less affected by medical anti-corruption. The focus areas include medical equipment: Meirui Medical (300760), United Film Medical (688271), Aohua Endoscope (688212), Haitai Xinguang (688677), Kaifa Medical (300633), Keykai Technology (688356), Opcon Vision (300595); Pharmaceutical commerce: Yifeng Pharmacy (603939), Dashenlin (603233), Yixintang (002727), Common People (603883), etc. Medical Beauty: aimeike (300896), East China Medicine (000963), etc. Scientific services: Nuowezan (688105), Bepsis (301080), Uningwei (301166); Hospitals and diagnostic services: Aier Ophthalmology (300015), Tongce Medical (600763), Jinyu Medicine (603882), etc. Traditional Chinese medicine: CR Sanjiu (000999), Tongrentang (600085), Yiling Pharmaceutical (002603); Innovative drugs: hengrui Pharmaceuticals (600276), Beida Pharmaceuticals (300558), East China Pharmaceuticals (000963), etc. Biological products: Zhifei Biology (300122), Watson Biology (300142), Hualan Vaccine (301207), etc. CXO: WuXi AppTec (603259), Kelaiying (002821), Tiger Pharmaceuticals (300347), Zhaoyan New Drug (603127), etc.

Risk Warning: The new crown epidemic continues to repeat, industry competition intensifies, product price reduction, product safety and quality risks, policy risks, research and development progress is lower than expected.