Regulatory policies and favorable policies go hand in hand, and the Chinese medicine industry will usher in a major reshuffle!

Since 2021, the Chinese medicine sector has almost been booming.
Among them, Jianmin Group and Guangyuyuan have increased by more than 100% this year
.
On December 28, Chinese medicine stocks such as Jinghua Pharmaceutical and Longjin Pharmaceutical had their daily limit
.
The Chinese medicine sector is being supported by a series of favorable policies
.
Since 2021, there have successively been "Several Policy Measures on Accelerating the Development of Traditional Chinese Medicine Characteristics", "Opinions on Further Strengthening the Work of Traditional Chinese Medicine in General Hospitals to Promote the Coordinated Development of Traditional Chinese and Western Medicine", and "Implementation Plan for the Dissemination of Traditional Chinese Medicine Culture (2021-2025) )", "Registration Classification and Application Requirements for Chinese Medicines" and other important documents were released to promote the innovation and high-quality development of the Chinese medicine industry
.
As of December 16, there are 58 new Chinese medicine registrations in 2021, an increase of 114.
81% compared with 2020
.
A total of 11 new Chinese medicines have been put on the market this year, a record high in the number of new Chinese medicines approved in the past five years
.
In addition, the centralized procurement policy also includes Chinese patent medicines and other products to speed up the admission of Chinese medicine to hospitals and broaden the channels for heavy volume
.
On the evening of December 21, Hubei took the lead in opening bids for the Inter-Provincial Centralized Procurement Alliance of Chinese Patented Medicines established by 19 provinces and cities including Hebei and Shanxi.
Drugs only dropped by 10%-30%
.
Overall, the price cuts are relatively mild
.
Kaiyuan Securities pointed out that, judging from the procurement of Chinese patent medicines that have already landed, the price of centralized procurement is not expected to fall off a cliff, but based on its cost, it ensures that Chinese medicine companies have a certain profit margin
.
At the same time, the Chinese medicine industry is also facing strict regulatory policies such as medical insurance control fees, hospitals adjusting the proportion of medicines, and standardizing clinical pathways
.
For example, in the Chinese medicine injection industry, life has become more difficult in recent years.
There are many varieties of Chinese medicine injections of 1.
9 billion yuan that have also been affected by monitoring and sales have declined
.
The new version of the Pharmacopoeia implemented on December 30, 2020 has more stringent requirements for drug safety, and specifies strict management of planting, collection, processing and circulation in the traditional Chinese medicine decoction piece industry, so as to improve the quality of traditional Chinese medicine products and promote the high quality of the industry developing
.
In this context, Chinese medicine companies need to improve their management capabilities and invest more in product quality
.
In general, in the context of regulatory policies and favorable policies, the Chinese medicine industry will usher in a new round of reshuffle
.
Those small and medium-sized Chinese medicine companies with weaker strengths and weak innovation and R&D capabilities may be eliminated.
Those companies that do not want to leave the market have to face the challenge of transformation and upgrading
.
"Only by actively deploying research and development and building new competitive product lines can we further strengthen the competitiveness of enterprises
.
Only Chinese medicine companies with development stories and research and development issues can continue to benefit .
" The industry said
.
The author has learned that some Chinese medicine companies have already embarked on a road of transformation
.
For example, at present, digital technologies represented by the Internet, big data, and artificial intelligence have penetrated into the Chinese medicine industry.
Some companies are trying to find the key to the inheritance and innovation of Chinese medicine by embracing digital transformation
.
Recently, Tongrentang and Tencent have joined hands.
The two parties will leverage on each other's resource advantages to carry out in-depth cooperation in new retail, cultural tourism, entertainment and other areas.
In the future, Tongrentang will use Tencent's superior technology, products and ecological resources to accelerate the transformation to digitalization and intelligence.
In recent years, Donge Ejiao has also actively changed its development strategy, accelerated digital transformation and business model innovation, and deeply promoted value reshaping, business reshaping, organizational reshaping, and spiritual reshaping, and further approached consumers
.