Chinese medicine extraction industry will usher in a large-scale merger upsurge

On November 21, 2013, the State Food and Drug Administration (SFDA) issued the draft for comments (hereinafter referred to as the draft for comments) of the notice on strengthening the supervision and administration of the extraction and extraction of traditional Chinese medicine, which mainly includes three new measures for strict rectification: First, from January 1, 2016, any Chinese patent medicine manufacturing enterprise that does not have the ability to extract traditional Chinese medicine shall stop the production of corresponding varieties and the approved entrusted processing shall also be abolished; second, the traditional Chinese medicine extracts with the drug approval number shall not be registered again by the provincial food and drug administration after the expiration of the validity period of the approval number The third is to implement the record management for the Chinese patent medicine national drug standard prescription items downloading and the Chinese herbal extracts with separate national drug standards Since January 1, 2015, all extracts of traditional Chinese medicine not filed as required shall not be used in the production of proprietary Chinese medicine As soon as the draft for comments was published, it immediately aroused strong repercussions from many Chinese patent medicine enterprises, among which the most controversial one was the clause of "cancel commissioned processing" in the notice It is understood that at present, there are 2595 Chinese patent medicine manufacturers in China However, due to the limitations of extraction equipment, land and technical personnel, many small and medium-sized Chinese patent medicine enterprises are outsourcing Chinese herbal extracts, and then processing them by themselves after returning to the factory Therefore, if the notice is successfully implemented, many enterprises can only cooperate with enterprises that have the production capacity of traditional Chinese medicine extract directly, and the traditional Chinese medicine extract industry will probably usher in a large-scale merger boom