The per capita usage of blood products in China is less than 1/4 of that in developed countries such as the United States, and the demand is showing an upward trend. With the increase of plasma supply and the improvement of clinical awareness in the future, the penetration rate in China is expected to continue to improve.
Zhitong Finance and Economics APP learned that Guolian Securities released a research report stating that the per capita usage of blood products in China is less than 1/4 of that in developed countries such as the United States, and the demand is showing an upward trend. With the increase of plasma supply and the improvement of clinical awareness in the future, the penetration rate in China is expected to continue to improve. Multiple factors such as the expansion of the payment scope of coagulation factor products in the 2023 edition of the medical insurance catalog are expected to boost demand. In the context of the tight industry supply and demand, leading companies with rich plasma station resources, especially those with central state-owned resources, are expected to gain empowerment in plasma station applications and resource integration. At the same time, companies with strong R&D capabilities and high plasma utilization rates are expected to receive policy preferential treatment in plasma station approvals.
Guolian Securities' main points are as follows:
There is great room for improvement in the penetration rate of blood products in China.
Blood products are biologically active preparations prepared by separating different protein components in blood, which play an important role in medical rescue and the prevention and treatment of certain specific diseases. Due to their specificity and high safety requirements, the industry has long been in a state of supply shortage/tight balance. The Chinese market size is expected to exceed 50 billion yuan in 2023, and is expected to reach 95 billion yuan by 2030, with a CAGR of 9.6%, significantly faster than the global level. The per capita usage of blood products in China is less than one quarter of that in developed countries such as the United States, and the demand is showing an upward trend. With the increase of plasma supply and the improvement of clinical awareness in the future, the penetration rate in China is expected to continue to improve.
The rapid development of the industry is driven by the simultaneous rise of supply and demand.
On the supply side, with the implementation of the "14th Five-Year Plan" plasma station plans in various regions, the number of plasma stations is expected to increase, and the amount of plasma collection is expected to continue to grow in the future. There are more than 150 kinds of proteins and factors in blood, and currently Chinese companies have separated the most 15 kinds. With the increase of listed varieties, the utilization rate of plasma is expected to increase. On the demand side, the accelerated aging is expected to drive a continuous increase in the number of medical visits; the COVID-19 pandemic has raised clinical awareness of blood products, and blood products are widely used clinically. With the expansion of indications, clinical applications are expected to become more widespread; multiple factors, such as the expansion of the payment scope of coagulation factor products in the 2023 edition of the medical insurance catalog, are expected to boost demand.
The drop in collection prices has been relatively gentle.
Since 2022, the blood product industry has undergone three rounds of centralized procurement covering three major types of products: human serum albumin, immunoglobulin and coagulation factors, involving more than 20 provinces. Except for the over 35% price drop in tetanus human immunoglobulin involved in the 2023 Nineteen-province Medical Union Joint Procurement, the price changes of other varieties are in single digits. According to PDB data, the sales of tetanus human immunoglobulin in 2023 account for only 3.3% of the overall market size of blood products, and it is expected that the impact of tetanus human immunoglobulin joint procurement on the overall blood product industry scale will be small.
Target companies: Tiantan Biological Products (600161.SH) has a leading position in plasma station and plasma collection volume. Shanghai RAAS Blood Products (002252.SZ) has introduced Haier Group to participate. Hualan Biological Engineering (002007.SZ) ranks among the top in plasma collection volume. Pacific Shuanglin Bio-pharmacy (000403.SZ) has rapid growth in plasma collection volume. China Resources Boya Bio-Pharmaceutical Group (300294.SZ) has a leading position in gross plasma margin. Shenzhen Weiguang Biological Products (002880.SZ) has advantages in average plasma collection volume of plasma stations.
Risk warning: national policy risks, potential risks caused by product safety issues, regulatory risks of single plasma collection stations, risks of insufficient raw material supply, risks of rising collection costs, risks of product price fluctuations, and risks of product R&D.
