Zhongtai medicine new ideas:this week the pharmaceutical sector still continued to shock, short-term in had no significant positive case next week will continue to remain volatile market.This week we released the"traceable + standard,medical device clinical trial verification has come true"industry review report,and we think the same medicines,instruments of tighter regulation from two key words:"and "traceability;specification of" with good equipment and equipment,leading enterprises to rise CRO optimistic about the long-term,large scale,quality control standard of instrument enterprise medical Dunlop, Xinhua medical, biological, biological and other top nine KELONG,and actively layout of medical equipment CRO and the tiger medicine;drug consistency evaluation of the pharmaceutical industry set off waves,will undoubtedly become the biggest winner of drug CRO in theory,but in the last year to the end of the national drug clinical verification area strictly at the beginning of this year,the medical institutions clinical qualification have no incentive to do clinical trials,the drug CRO enterprise orders have done relatively serious,test Considering the large number of drugs to be in 2018 before the end of the year by the consistency of the evaluation,we expect this year second half of the medical institutions clinical trials qualification is expected to release,active interest in the proposed domestic drug cro Tigermed,Boji medicine. Long-term investment perspective: it is recommended that the focus on two main lines: 1>has a variety of advantages,marketing advantages and resourceintegration capability of pharmaceutical enterprises,such as Tasly,Hengrui medicine,China Sea pharmaceutical,Livzon Group,Kunming Pharmaceutical Group;2> diagnosis way,big data age products and business model innovation and privatecapital into medical services in the field of pharmaceutical and medical industries to bring investment opportunities, related to the subject of the involvedgene sequencing,cell therapy,mobile medical,wearable medical devices and medical services stocks,related to the subject,see text. industry focus:to implement the Circular of the general office of the State Council regarding the development of generics quality and efficacy of consistency evaluation of opinions"further clear reference than the choice of formulation process,State Food and Drug Administration formulated the generics quality and efficacy of consistent evaluation parameter than in preparations for the record with the recommended procedure. Market performance:the beginning of 2015 to the current pharmaceutical sector analysis, the absolute yield of the pharmaceutical sector 21.7%,over the same period the Shanghai and Shenzhen 300 absolute rate of return of -12.7%, pharmaceutical sector outperformed the Shanghai and Shenzhen 300 about 34.4 percentage points. This week the pharmaceutical sector fell by 0.1%,fender block inaddition to medical devices and medical services all fell,the medical equipment sub sector rose reached 2.48%,pharmaceutical business decline reached 1.3%. TTM overall valuation method to calculate,the current valuation of the pharmaceutical sector is 37 times the PE,greater than the historical average (37 times PE),relative to all of the A shares (net of financial sector) premium rate remained at 27%.