The general price rise of Chinese patent medicine raw materials brings multiple impacts, and the three parties work together to ensure the supply of raw materials

On November 23, the Shanxi Provincial Pharmaceutical Equipment Centralized Bidding and Procurement Center issued the "Notice on Publicizing Some Enterprises' Application for Revocation of Platform Online Procurement Eligibility", 32 drug product regulations applied for cancellation of platform online procurement qualification, including Qiwei Turmeric Liniment, Vitamin C silver fins, allspice eliminate health sheet, heat granules, astragalus motherwort particles, reference Yangxue oral Zhibai oral solution and the like
.
On November 29, the Procurement Center officially announced the implementation of 32 drug product regulations to revoke the procurement qualifications of the platform to be linked to the Internet
.
According to the regulations of Shanxi Province, for drugs purchased through bargaining, if the company cannot supply the drug and applies for cancellation of the network connection, it shall be removed from the network after approval by the Pharmaceutical Equipment Procurement Center.
However, the network shall not be connected again for two years thereafter
.
Why do these companies apply to withdraw their networks? The price decline coincides with the price increase of raw materials.
Relevant data shows that in 2020, the consumption capacity of China's proprietary Chinese medicine market will show a significant downward trend
.
In the context of the general rise of raw materials for Chinese medicinal materials, on the one hand, the rapid increase in raw material prices has led to unstable procurement and supply; on the other hand, the continuous decline in prices has caused a general decline in profits in the domestic Chinese patent medicine market, and it is even difficult to guarantee normal supply
.
From the perspective of manufacturing companies, there are 8 manufacturers involved in the 32 drug product regulations that have applied for withdrawal from the Internet.
They are Hubei Minkang Pharmaceutical, Chia Tai Qingchunbao Pharmaceutical, Guizhou Shuangsheng Pharmaceutical, Guangxi Baiqi Pharmaceutical, Guizhou Bailing, Liaoning Shangyao Good Nurse Pharmaceutical, Tiansheng Pharmaceutical, Yunnan Yunhe Pharmaceutical
.
Among them, Hubei Minkang Pharmaceutical accounted for the highest proportion of drugs withdrawn from the network, with 17 products withdrawn from the network, accounting for 53.
13%; Chia Tai Qingchunbao Pharmaceutical had 8 products withdrawn from the network, accounting for 25%; Guizhou Shuangsheng Pharmaceutical had 2 products withdrawn from the network , Accounting for 6.
25%, and the other 5 companies withdrawn from the Internet, accounting for a total of 5 products, accounting for 15.
63%
.
From the perspective of drug efficacy, the 32 drug product regulations that applied for withdrawal from the Internet have 6 categories, of which 22 are nourishing varieties, accounting for 68.
74%, and 4 are gastrointestinal varieties, accounting for 12.
50%; There are 2 heat-clearing varieties, accounting for 6.
25%; 2 skin-related varieties, accounting for 6.
25%; 1 Qi regulating variety and 1 damp-removing variety, accounting for 6.
26% in total (see figure)
.
From the analysis of the raw materials involved in the withdrawal of the drug network, a total of 72 raw materials are involved in 32 drug product regulations
.
Among them, there were 52 varieties with rising raw material prices, accounting for 72.
22%; 10 varieties with flat prices, accounting for 13.
89%; and 10 varieties with falling prices, accounting for 13.
89%
.
The proportion of rising raw materials is too high, and the cost of enterprises has risen significantly
.
There were 31 varieties with price increase ≥30%, accounting for 59.
62% of 52 varieties, such as Daqingye, chrysanthemum, platycodon, forsythia, astragalus, red ginseng, wolfberry, cordyceps and other varieties
.
Among them, there are 8 varieties with an increase rate of ≥100%, accounting for 15.
38% of the 52 increasing varieties, such as Rehmannia glutinosa, Alisma orientalis, Chuanxiong, Phellodendron amurense, Nepeta, peppermint and yam
.
There were 4 varieties with a price decline of ≥20%, which accounted for 40% of the 10 varieties, such as Pinellia, Lonicera, Chonglou and dried ginger
.
Based on the above analysis, the author believes that the reasons for the withdrawal of the company’s network are that, on the one hand, the products of these companies do not have a large market share in Shanxi’s local market; Relationship
.
Reducing the cost of raw materials has become a core pain point.
The price of Chinese medicinal materials is easily affected by factors such as planting area, growth cycle, harvest time, appearance, processing technology and other factors
.
In the context of the market, price changes can easily affect the enthusiasm of growers in the production area
.
In the high-priced stimulate the market, a number of easy to grow high-yielding varieties, the future will be the emergence of overcapacity, such as yellow, Alisma, Chuanxiong, Nepeta, mint, Atractylodes, saffron, bellflower
.
For the sluggish varieties, such as dried ginger, scrophulariaceae, pinellia, etc.
, there will be a significant reduction in production in the future
.
Whether the market is up or down, it will inevitably affect production bases and growers
.
Only with the scientific and powerful production guidance and support of the local government and guaranteeing the basic income of the growers, can the production of Chinese medicinal materials be fundamentally stabilized and guaranteed
.
From the perspective of proprietary Chinese medicine companies, one is that high production costs directly affect the company's ability to guarantee supply
.
From 2020 to the present, the prices of bulk raw materials such as Rehmannia glutinosa, Alisma orientalis, Chuanxiong, Phellodendron amurense, Nepeta, peppermint, and Chinese yam have been rising continuously, and even rare doublings have occurred
.
In the process of rising prices of Chinese medicinal materials, raw materials produced by proprietary Chinese medicine companies cannot be stabilized and guaranteed, which ultimately affects the company's ability to guarantee supply
.
Second, high production costs are directly related to the product quality of Chinese patent medicine companies
.
The income of an enterprise is directly related to the profit of the product.
Under the current environment of rising raw material prices, enterprises may lose money and perform contracts in order to meet the requirements of quality and quantity supply, and profits cannot be guaranteed
.
In addition, the price of a company's finished products will directly or indirectly affect the needs of consumer groups.
The relationship between the company and the consumer group is a symbiotic relationship.
Once separated from each other, the survival dilemma of the company will become more prominent
.
From the perspective of terminal consumption, the consumption market of Chinese patent medicines is inherently small.
Faced with the decline in group demand, it will further lead to a weakening of the supply side such as manufacturers
.
Establish a production-sales docking system as soon as possible.
The author suggests that the following measures should be taken to establish a production-sales docking system as soon as possible to ensure a stable supply of raw materials for proprietary Chinese medicines
.
The first is to strengthen the construction of information platforms, scientifically plan and guide the production of Chinese medicinal materials.
Under the guidance of big data and information platforms, each production area should strengthen the scientific nature of the production layout and production development of Chinese medicinal materials
.
It is necessary to ensure the planting and production of Chinese medicinal materials as well as the basic income of growers
.
The second is to actively guide production companies to build a raw material traceability system.
A sound supply chain system is the foundation of ensuring the supply of raw materials, and proper raw material reserves are the prerequisite for achieving corporate revenue
.
In this context, the relevant departments that organize procurement will also deliberately lean toward the "tracing of authentic medicinal materials" in terms of scoring standards and quality levels.
This will help accelerate the construction of the traceability system of Chinese medicinal materials and improve the overall quality of Chinese medicine Come to benefit
.
The third is that companies should establish their own dynamic monitoring system for raw materials.
First, they should strengthen the construction of corporate information centers and monitoring systems to conduct accurate market prediction; the second is to establish dynamic inventory and store low and sell high.
For example, companies such as Wanxi Pharmaceutical and Lanzhou Foci The establishment of a dynamic inventory for the Liuwei Dihuang series of raw materials, and the annual storage of new goods to replace the old inventory, this method is worthy of other companies to learn from; the third is to entrust a third-party information platform or big data platform to conduct annual raw material data monitoring and guidance services
.
(Author's unit: Tiandi Yuntu Yao Big Data Platform)