Analysis of the reasons for the weakness of Chinese herbal medicine market

Business club, Aug 3, 2011: since May 2011, in order to adjust the structure, stabilize the growth and maintain the stability of the country, the watershed has been marked out by the fine-tuning of economic policies, high prices have been effectively curbed The price of medicinal materials also retreated, from skyrocketing to stagnation and then to ebb In May 2012, the whole country launched a special rectification on Adulteration of drug quality and management order in the drug market, which made many operators and pharmaceutical enterprises unexpected Through the rectification, we stopped the bubble economy caused by overheated investment The main channel for the digestion of traditional Chinese medicine belongs to pharmaceutical enterprises However, from the perspective of the export of the pharmaceutical Canton Fair in May this year, the transaction amount of products in several categories, such as traditional Chinese medicine extract, traditional Chinese medicine and Chinese patent medicine, has declined to varying degrees compared with the previous one Among them, the decline rate of Chinese patent medicine is as high as 69.99%, and the decline of Chinese patent medicine in the international market is hard to hide At the same time, the domestic production has also been greatly reduced, and the plight of pharmaceutical enterprises has a great impact on the continued weakness of the Chinese herbal medicine market The reasons are as follows: first, due to the deterioration of the debt crisis in Europe and the United States this year, the economic growth has dropped significantly, the international relations between China and some countries have been strained, and the export of the pharmaceutical market has repeatedly shown policy barriers Therefore, the contradiction between our lack of foreign demand is more prominent, and the export of extracts and medicinal materials are greatly reduced At present, the change of exchange rate also damages the interests of export enterprises Therefore, some foreign processing pharmaceutical enterprises reduce the purchase of raw materials Second, the growth rate of domestic economic reform and development began to decline in 30 years, which should be said to conform to the economic law With the sharp increase of labor force and raw material cost, the profits of enterprises have declined Due to the slow return of funds from downstream enterprises, the limited funds of pharmaceutical enterprises are even more limited In exchange for capital flow, pharmaceutical companies have to reduce the stock of raw materials Third, when the raw materials and medicinal materials fall back, the medical reform proposes to separate the medicine from the family In order to cut down the unreasonable medicine price, the state reduces the price of basic medicine for social security, implements "zero profit" medicine for the new rural cooperative medical system, and expands the scope of reimbursement for basic medicine for social security In this process, traditional Chinese medicine enterprises do not know when their products will enter or exit the national essential drug catalog, and when they will encounter price reduction again Therefore, we should reduce production and purchase of raw materials Fourth, many pharmaceutical companies said that the innovative products have no medical insurance payment, and the sales of innovative drugs are greatly limited The high price of new drugs also limits the purchase of raw materials Fifthly, with the rectification of the market, we will crack down on the fake and inferior drugs adulterated, so that drug companies can reduce the proportion of product inventory, so as to avoid the occurrence of bad conditions in the inspection and increase the cost of punishment Summer is the best time for pharmaceutical companies to overhaul their machines Therefore, we should ensure the supply baseline inventory and reduce the backlog of medicinal materials and products Sixth, the adverse reactions of traditional Chinese medicine preparations, from the event of Houttuynia cordata, to the event of Acanthopanax senticosus, to the event of Yinzhihuang, to the stop of Shuanghuanglian, Qingkailing and yanxiping, have greatly reduced the use and digestion of some traditional Chinese medicine by pharmaceutical enterprises To sum up: with the rising cost of pharmaceutical enterprises and the continuous increase of business pressure, domestic low-end pharmaceutical enterprises are facing increasingly fierce competition and upgrading of pharmaceutical industry This shows that the overall purchasing power is obviously insufficient When the market and the place of origin stock of medicinal materials are not well digested, the market transaction is weak, and the situation of price decline will continue From this year to next year, medicinal materials restored to cultivation under the stimulation of high prices in the early stage will usher in new production At present, the slight rise in the price of medicinal materials will not contribute to the overall pharmaceutical market Although there are short-term price fluctuations in the current market, the future market is not optimistic.