The 170 billion market will explode!

Recently, the state has successively issued heavy policies to vigorously develop the traditional Chinese medicine industry

Favorable policies continue! The 170 billion market of Chinese medicine decoction pieces may explode

Since the official implementation of the "Traditional Chinese Medicine Law" in July 2017, the traditional Chinese medicine industry has entered a new historical period of development and governance according to law; in October 2019, the State Council proposed 20 guiding opinions to promote the inheritance, innovation and development of traditional Chinese medicine

In May 2021, the State Council issued the "Key Tasks for Deepening the Reform of the Medical and Health System in 2021", which clearly identified the promotion of the revitalization and development of traditional Chinese medicine as one of the key tasks; It is clarified that the traditional Chinese medicine decoction pieces can continue to be increased by 25%, and the traditional Chinese medicine medical institutions do not implement DRG payment for the time being; Western medicine, which has attracted much attention in the industry, has also made breakthroughs in the development of traditional Chinese medicine diagnosis and treatment services.

Decoction pieces of traditional Chinese medicine are one of the three pillars of China's traditional Chinese medicine industry and an important raw material for proprietary Chinese medicines.

As a derivative and innovation of Chinese herbal decoction pieces, Chinese herbal formula granules have the advantages of high standardization, convenient and hygienic, clear weight, easy storage, and not easy to deteriorate.

In February 2021, four departments including the State Food and Drug Administration and the State Administration of Traditional Chinese Medicine issued an announcement to end the pilot work of traditional Chinese medicine formula granules

Is the pharmacy market picking up? Ranking of TOP20 products has changed

In terms of pharmacies, in recent years, the state has successively promulgated policies such as the hierarchical and classified management of retail pharmacies across the country, and the special rectification of TCM decoction pieces.

Sales of TCM decoction pieces at physical pharmacies in cities in China (unit: 10,000 yuan)

Source: Competitive landscape of physical pharmacy terminals in Chinese cities

From the perspective of treatment categories, among the TOP10 treatment categories, tonics, hemostatics, and heat-clearing drugs have been in the top three for many years, among which tonics take the top spot, with a market share of more than 50% and a trend of increasing year by year; or driven by the epidemic , Epidemic drug has risen from the fifth place in 2019 to the fourth place in 2020, and it is expected to continue to be the fourth place in 2021

2021E China's urban physical pharmacy terminal TCM decoction pieces TOP10 treatment categories

Source: Minet.

Subdivided into products, it is estimated that in 2021, the total sales of the TOP20 products of Chinese herbal decoction pieces in urban physical pharmacies will exceed 15 billion yuan, accounting for nearly 60% of the overall market

2021E Top 20 products of Chinese herbal decoction pieces in urban physical pharmacies in China

Note: Products with * are products in the National Medical Insurance Catalogue

Source: Minet.

From the perspective of growth rate and changes in ranking, it is expected that bird's nest, Ganoderma lucidum spores and Cordyceps sinensis will rise better, with an increase of more than 10% year-on-year.

Kangmei Pharmaceutical has completed the restructuring, and the competition for the leading position is fierce

At present, the manufacturers of Chinese herbal decoction pieces in China are scattered, and the industry concentration is low

Among the listed pharmaceutical companies, China Traditional Chinese Medicine, China Resources Sanjiu, Hongri Pharmaceutical, Xiangxue Pharmaceutical, Tailong Pharmaceutical and other companies are all involved in the R&D and production of Chinese herbal decoction pieces / Chinese herbal formula granules

China Traditional Chinese Medicine is a leading enterprise of traditional Chinese medicine formula granules.

As a former leading enterprise of traditional Chinese medicine decoction pieces, Kangmei Pharmaceutical's bankruptcy reorganization took more than a year, and the reorganization plan will be completed by the end of 2021, and all debts have been paid off

With the smooth implementation of the restructuring plan, Kangmei Pharmaceutical's debt crisis has been resolved.
With the strategic support of the controlling shareholder Guangdong Shennong and financial investors, can Kangmei Pharmaceutical be reborn and continue to take the lead in the Chinese herbal medicine industry? Minet will continue to pay attention
.