Medicines Policy increases industry concentration

“The current low single-digit growth in the pharmaceutical industry has become the new norm, part of the large-cap companies underestimate the value has been more adequately reflect market expectations, but the industry segments differentiation obvious trend for the better part of the field is still able to maintain a more fast growth, high valuation enjoy. “CICC healthcare industry researcher Zou Peng believe that it is entangled in the growth rate for the industry as a whole, low investment guidelines do not mean much, look for trends to the good segments, and focus on investment still able to obtain better excess returns.

“Under the current industrial policy, improve industry concentration is an inevitable trend, but medical prescriptions structure is also changing rapidly, giving way adjuvant therapeutic use.” Zou Peng said that the current institutional medicine positions at historic lows, still optimistic investment opportunities in the pharmaceutical sector, it is proposed to focus on prescription drugs and the leading business leader.

As a buyer of institutional investors, GF Fund equally optimistic about the pharmaceutical industry’s future development. “Under the policy support and an aging population in the larger environment, the pharmaceutical industry has great growth potential.” GF Securities medical Index Fund (502,056) fund manager Luo Guoqing pointed out that the total expenditure of the health share of GDP is slightly higher 5%, still nearly double the gap with developed countries, the future has a large room for improvement.

“This year the government will actively promote the deepening medical reform policy floor, benefiting from the relevant medical reform policies and industry of high economic, high-end medical services, prescription drugs, precision medical and other fields in line with health reform policy-oriented future with great growth potential.” Luo Guoqing expressed.

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