Sell ​​16.8 billion to a new high!

In February this year, the four departments jointly issued the "Announcement on Ending the Pilot Work of Chinese Medicine Formula Granules", which aims to strengthen the management of Chinese medicine formula granules, standardize the production of Chinese medicine formula granules, guide the healthy development of the industry, and better meet the clinical needs of Chinese medicine.

Recently, the 2020 transcripts of listed pharmaceutical companies have been announced to the public.

Table 1: The specific sales of listed pharmaceutical companies that have released relevant data in 2020 (unit: 100 million yuan)

Source: Company Annual Report

Note: China Resources Sanjiu comes from the latest record of investor relations activities

Chinese traditional medicine: super leader in formula granules, tens of billions of scale has come true

Figure 1: The business situation of Chinese traditional Chinese medicine formula granules and decoction pieces (unit: 100 million yuan)

Source: Company Annual Report

As a leading pharmaceutical company in formula granules, China Traditional Chinese Medicine's turnover in this field has achieved rapid growth in recent years.

Table 2: The current situation of obtaining production licenses for Chinese traditional medicines in various regions

Source: company annual report, *is newly added last year

As the company’s newly established integrated business enterprises actively promote production capacity, the obtained TCM formula granule extraction and preparation production licenses have increased significantly compared with the same period last year.

Figure 2: The company's traditional Chinese medicine formula granule business market area situation

Source: Company Annual Report

The main sales regions of Chinese traditional medicine formula granules are in East China (Shanghai, Jiangsu, Zhejiang, Anhui, Fujian, Jiangxi and Shandong), South China (Guangdong, Guangxi and Hainan), North China (Beijing, Tianjin, Shanxi, Hebei and Inner Mongolia), Central China ( Henan, Hubei and Hunan), the combined sales of the four major regions in 2020 reached 78.

China Traditional Chinese Medicine mentioned in its annual report that the turnover of the Chinese medicine formula granule segment has been increasing year by year, thanks to the company's adherence to academic promotion policies, the establishment of an expert support system, and the creation of precision marketing activities around specialists and diseases.

The company's TCM formula granules gross profit margin reached 70.

In recent years, the regulatory requirements for classic famous prescription products have gradually become clear.

Regarding the current New Deal, China Traditional Chinese Medicine said that after several years of industrial layout and scientific research investment, it has made sufficient preparations in advance.

Hongri Pharmaceuticals: Impacting the scale of 3 billion, the new workshop is expected to expand production capacity

Figure 3: Hongri Pharmaceutical's sales of traditional Chinese medicine formula granules (unit: 100 million yuan)

Source: Company Annual Report

Note: Consolidated decoction pieces sales revenue in 2020

In recent years, Hongri Pharmaceutical's sales scale of Chinese medicine formula granules has exceeded 2 billion yuan, and the growth rate in 2018-2019 has exceeded 20%.

Hongri Pharmaceuticals said that there are currently more than 600 types of Kangrentang traditional Chinese medicine formula granules, which basically cover the varieties with higher frequency of clinical use of traditional Chinese medicine.

In terms of market promotion of Chinese medicine formula granules, the company has formed a hospital management cooperation program, academic education cooperation program, clinical medical cooperation program, medical scientific research cooperation program, online education cooperation program and other academic service models in the course of many years of practice, and established hospitals and enterprises.

In 2020, Henan Hongri Kangrentang, Chongqing Hongri Kangrentang, Hubei Chenmei and many other companies have successfully obtained provincial pilots; Foci Hongri formula granule construction project has completed the main body capping of the workshop.

The company participates in the formulation of the national standard for formula granules.

Shenwei Pharmaceutical: Actively cut prices to expand market competitiveness and accelerate market development in Yunnan

Figure 4: Sales of Shenwei Pharmaceutical's Traditional Chinese Medicine Formula Granules (Unit: 100 million yuan)

Source: Company Annual Report

It is reported that Shenwei Pharmaceutical has actively deployed the Chinese medicine formula granule industry ten years ago, and currently has more than 600 varieties of Chinese medicine formula granules.

Shenwei Pharmaceutical said that as the first Chinese medicine formula granule pilot in Hebei and Yunnan provinces and the sixth-ranked formula granule manufacturer in the country, the company will rapidly develop towards the goal of forming a national network under the opportunity of the opening of the national market.

China Resources 39: The turnover of formula granules exceeds 2 billion, further expanding the decoction piece business

China Resources Sanjiu is also one of the manufacturers of traditional Chinese medicine formula granules, and currently it can produce more than 600 varieties of single-flavor formula granules.
The company mentioned in the latest investor relations activity record sheet released on April 2 that the operating income of the formula pellet business will achieve a slight increase in 2020, and the overall turnover will exceed 2 billion yuan.
The company has achieved close to double-digit growth in profits through measures such as precise cost control, quality improvement and efficiency enhancement.
The gross profit margin of the formula granule business is close to the average gross profit margin (74.
51%) of the company's prescription drug segment.

It is reported that the company has set up a Sinopharm Division to undertake the business of formula particles, and the production is mainly undertaken by business units such as Anhui Jinchan.
The company signed an agreement in December 2020 to acquire 60% of Anhui Run Furong Pharmaceutical Co.
, Ltd.
to supplement the production capacity of the decoction pieces business and further enrich the business layout of Sinopharm.

Faced with the new competitive environment brought about by the end of the trial of Chinese medicine formula particles, China Resources Sanjiu stated that the company will accelerate the layout of the entire industry chain, accelerate the production of new standards for varieties, optimize the preparation process, continue to expand the construction of medicinal planting bases, and ensure the quality of medicinal materials And the quality is stable, forming an internal control quality standard that meets the production of high-quality Chinese medicine formula granules; and actively carrying out manufacturing upgrades, further enhancing the safety system construction of the traceability of Chinese medicine formula granules through blockchain technology, and implementing production and experiments covering the whole process of extraction and preparation Room process management system to improve the level of production intelligence.

Conclusion

The New Deal clarifies that supervision will be strengthened, especially at the provincial level, which will benefit enterprises that are deployed in various provinces in advance and can achieve full traceability.
At present, leading companies such as China Traditional Chinese Medicine, Hongri Pharmaceutical, Shenwei Pharmaceutical, and China Resources Sanjiu are all ready to meet new challenges; on the other hand, as the industry is officially opened, more manufacturers may follow.
Entering the field of formula granules/decoction pieces, the industry will continue to grow at a high speed, and competition will also become more intense.
It is left to the market to verify whether it is the strong or the newcomer.

Source: company annual report, announcement

Original title: A record high of 16.
8 billion sales! The formula granule leader shows its talents, Chinese traditional medicine, Hongri, Shenwei.
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What is the reason for the surge?