Innovative Chinese medicine drugs are supported again, and the industry will welcome new opportunities for development!

【Pharmaceutical Network Market Analysis】"Promote the inheritance and innovation of traditional Chinese medicine, and improve the public health system
.
" "Let the Chinese medicine industry once again receive attention and heated discussions
in the industry.
" "Inheritance and innovation" will undoubtedly become the main theme of the future development of the Chinese medicine industry
.
In recent years, the state has continued to issue a series of favorable policies to help the development of traditional Chinese medicine, including the "Guiding Opinions on Medical Insurance to Support the Inheritance and Innovation and Development of Traditional Chinese Medicine", the launch of the "dual-channel" drug management mechanism, the clarification of the use of traditional Chinese medicine formula granules, the inclusion of qualified Chinese medicine institutions in medical insurance designated points, the construction of multidisciplinary cross-innovation teams of traditional Chinese medicine, and the acceleration of the approval of innovative Chinese medicine drugs
。 With the inclination of traditional Chinese medicine policy, the innovation enthusiasm of traditional Chinese medicine enterprises has been greatly improved, and investment in research and development has been continuously increased, and innovation results
have been harvested one after another.
In 2021, a total of 12 new Chinese medicine drugs were approved, a record high, and a total of 20 new Chinese medicine drugs have been approved
in the past five years.
Medical insurance has given corresponding support
to innovative Chinese medicine drugs.
Since 2017, the medical insurance catalogue has imposed additional payment restrictions on some blockbuster proprietary Chinese medicine products, and the relevant restrictions
will be lifted on a pilot basis in 2022.
In 2021, the National Medical Insurance Administration and the State Administration of Traditional Chinese Medicine jointly issued documents to support the inheritance and innovation of
traditional Chinese medicine.
Recently, the National Joint Procurement Office of Proprietary Chinese Medicines was officially established and issued the "Procurement Announcement of the National Alliance of Proprietary Chinese Medicines", and 30 provincial levels (excluding Hunan, Fujian, Hong Kong, Macao and Taiwan) will form the National Joint Procurement Office
of Proprietary Chinese Medicines.
October 10 is the time for medical insurance departments at all levels to complete the review of relevant drug procurement data, and the scope of this centralized procurement will cover 29 provinces (municipalities and autonomous regions) and the Xinjiang Production and Construction Corps
.
Western Securities previously analyzed that the centralized procurement of proprietary Chinese medicines will give priority to the collection of varieties in the medical insurance catalogue and the basic drug catalogue, which will facilitate patients to buy cheaper drugs and make it affordable for the people to see the disease and buy medicines
.
At the same time, the price reduction will reduce the pressure on medical insurance spending, allowing limited funds to be used for
patients who need it most.
The market believes that after this centralized procurement, the centralized procurement of proprietary Chinese medicines will become normal, and the competition pattern of the traditional Chinese medicine industry is facing a reshuffle
.
In general, relevant national policies are requiring and guiding Chinese medicine enterprises to do real innovation
.
Innovation is often inseparable from continuous R&D investment and talent support
.
From the perspective of R&D investment of traditional Chinese medicine enterprises in recent years, according to the semi-annual report, the R&D expenses of 50 of the 73 listed Chinese medicine companies have increased compared with the same period last year, among which the R&D expenses of innovative Chinese medicine pharmaceutical enterprises represented by Tasly, Ling Pharmaceutical and Kangyuan Pharmaceutical have exceeded the total operating income by several times
.
It can be seen that Chinese medicine enterprises are paying more and more attention to R&D, and will gradually change the situation
of "emphasizing sales and under-R&D" in the future.
With the aging of the population, the continuous upgrading of consumption, and the growth of consumer demand for traditional Chinese medicine health preservation and disease treatment, the industry believes that the incremental space of the proprietary Chinese medicine market is still likely to continue to expand
.
According to the data, the number of TCM medical institutions will reach 95,000 in 2025 (an increase of 31% compared with the end of 2020), and the number of TCM hospitals will reach 6,300, an increase of 15%
compared with the end of 2020.
The industry expects that the proprietary Chinese medicine industry will welcome new opportunities
for development in the next five years.
Disclaimer: Under no circumstances does the information or opinions expressed in this article constitute investment advice
to anyone.