Sou Hu Cai Jing·2025-10-08 12:05Core Viewpoint - The National Healthcare Security Administration has announced the 11th batch of centralized drug procurement, which will take place on October 21, covering 55 varieties and 162 specifications, including key areas such as antiviral and kidney disease treatment drugs [1][2]. Group 1: Drug Procurement Policy - The 11th batch of centralized procurement aims to stabilize clinical practices, ensure quality, prevent collusion, and avoid excessive competition [1]. - The new procurement rules will optimize price control mechanisms to prevent companies from underbidding, which previously led to unsustainable low prices [1][4]. - The focus on high-value consumables and medical devices is expected to benefit companies with strong cost advantages and product quality, particularly in major categories like cardiovascular and anti-infection drugs [4][5]. Group 2: Market Opportunities and Challenges - The centralized procurement policy presents both opportunities and challenges for pharmaceutical companies, prompting some generic drug firms to shift towards a combination of generics and innovation [2][5]. - The "anti-involution" trend in the procurement sector is expected to primarily benefit high-value consumables, which have been adversely affected by previous procurement rounds [2][4]. Group 3: Long-term Investment Perspective - Investors are advised to adopt a long-term perspective, as some innovative drug stocks are currently overvalued following previous market enthusiasm [3][9]. - The ongoing improvement of procurement policies is seen as a catalyst for the healthy development of the pharmaceutical industry, favoring large innovative drug companies with strong R&D capabilities [5][9]. Group 4: Company Performance and Projections - Companies like Kelun Pharmaceutical, Jingxin Pharmaceutical, and Fosun Pharma are highlighted for their strong R&D pipelines and potential for growth, with Kelun having over 30 projects focused on oncology [6][7]. - Fosun Pharma has made significant progress in its innovative transformation, with multiple products showing promising clinical trial results [6][8]. - China National Pharmaceutical Group is expected to have nearly 20 innovative products approved in the next three years, with several projected to exceed sales of 2 billion RMB [8].