The overall decline of the Chinese medicine industry, chinese medicine approval transactions are hot why?

So, compared with the entire pharmaceutical and biological industry, which sub-industry is most affected by the outbreak? The answer is: Chinese medicine.
Up to now, choice data show that A-share listed pharmaceutical and biological enterprises a total of 349, of which 44 biological products enterprises, chemical and pharmaceutical enterprises 110, medical device enterprises 76, Chinese medicine enterprises 70, the rest of the medical services and pharmaceutical business enterprises.
349 enterprises in the first half of the year revenue growth rate of -5.06%, net profit growth rate of 1.66%, we can see that the Chinese medicine industry in these two dimensions significantly lower than the overall level.
looking at other sub-sectors, the median revenue growth rate of 44 bio-products enterprises was 2.79 percent, the median net profit growth rate was 25.99 percent, and the figures of 110 chemical and pharmaceutical companies were 9. 46% and 48.57 percent, not to mention the star sector medical devices in the first half of the year, 76 medical device companies with a median revenue growth rate of 57.19 percent and a median net profit growth rate of 188.18 percent.
is obvious, compared with these three sub-industries, with even flower plague, blood must be net and other outbreaks of fire products in the Chinese medicine industry is difficult to associate.
01 The overall decline of the Chinese medicine industry to Ling Pharmaceuticals revenue in the first half of the year increased by 50.35 percent year-on-year, Lianhua Qing plague series of products in the first quarter revenue of 1.5 billion yuan, compared with the 2019 Lianhua Qing Plague full-year revenue of only 200 million yuan.
The rapid growth of Lianhua Qing plague or Ling pharmaceutical industry does not represent the growth trend of the Chinese medicine industry in the first half of 2020, on the contrary, in the first half of 2020, only 19 of the 70 pharmaceutical listed companies in the A-share market achieved revenue growth, with a median revenue growth rate of -8.32%, which means that more than two-thirds of enterprises' revenue declined year-on-year, the highest year-on-year decline of 77.12%.
looking at net profit, only 23 of the 70 enterprises in the first half of the year achieved year-on-year growth in net profit, the same almost two-thirds of enterprises fell year-on-year, the median year-on-year net profit growth rate of -19.14 percent, leaving Comey Pharmaceuticals, net profit fell by up to 505 percent year-on-year.
data from 2016 to the present can also show the "recession" of the Chinese medicine industry.
the median revenue growth rate for the pharmaceutical industry from 2016 to 2019 was 11.29%, 12.21%, 15.79% and 9.06%, respectively, and the median net profit growth rate was 8.14%, 11.17%, 12.74% and 6.25%, respectively.
past five years, these two figures are only negative in 2020, we can see that the first half of the new crown pneumonia pandemic "after-effects" on the Chinese medicine industry can be seen.
chinese medicine companies, which are in the top 10 of net profit growth in the first half of the year, do not seem to be very "able to fight".
the highest growth was in Erling Pharmaceuticals, which grew by 50.35 per cent year-on-year, compared with 11.48 per cent for the seventh-ranked Yunnan White Drug and 10 per cent for the eighth-place finisher.
while the growth of the three sub-sectors of biologics, chemicals and devices significantly exceeded that of Chinese medicine, the highest year-on-year growth in bio-products revenue was 111.43 percent for Consino, with the top 13 of the 44 companies achieving growth of more than 10 percent; Bio79.5 per cent, with the top 29 out of 110 companies growing by more than 10 per cent, while medical device companies grew by 1159.39 per cent, with 42 of the 77 companies growing by more than 10 per cent.
2002 decline in hot approval transactions from the performance of various enterprises, the domestic Chinese medicine industry did experience a rather dismal first half.
but there is a different picture under the macro figures.
Liu Hui, vice president of a pharmaceutical cooperation platform in Beijing, had more than 60 chinese medicine approval transfer transactions in the first half of the year.
his view, the industry as a whole may not be good-looking data, but the Chinese medicine approval trading market is active, people are still full of confidence in the Chinese medicine market.
policy changes are the cause of market activity.
November 29, 2019, the State Drug Administration issued the Notice on the Implementation of the Drug Administration Law of the People's Republic of China, specifying that from December 1, 2019, anyone holding a drug registration certificate (drug approval) An enterprise or pharmaceutical development institution with a license for imported drugs or a drug product registration certificate shall strictly fulfill the obligations of the drug listing license holder and be responsible for the safety, effectiveness and quality control of the drug in the course of drug development, production and use in accordance with the law.
simple terms, the announcement turned all drug license holders into MAH, and the provisions of the new Drug Administration Act provide for the transfer of MAH.
in the past, Chinese medicine "can only be transferred within the Group enterprises or new Chinese medicine products with new drug certificates" and the transfer of Chinese medicine approval "unbanned".
the Drug Administration did not issue specific management rules, but after the announcement of many enterprises have begun to act, the domestic drug approval market has been activated.
July 31, the State Drug Administration publicly solicited the opinions of the "Measures for the Administration of Changes after the Listing of Drugs (Trial)".
" is still only the consultation stage, but many enterprises have begun to prepare in advance.
the first half of the transaction I deal with are the cooperation method, price, payment ratio are agreed, signed the contract and paid the first payment.
the product and transaction content, no matter which day the policy is really introduced can be transferred directly.
" policy has attracted a number of enterprises that are not focused on the Chinese medicine business.
" now the impact of collection on chemical drugs is very large, many enterprises will feel that this direction at a glance to get the head imagination space is not large, so at this time to choose Chinese medicine.
" collection of large-scale price also had an impact on the mentality of the original players, "there is a chemical medicine and do Chinese medicine enterprises suddenly said that Chinese medicine approval is not sold, you do not know which day what kind of medicine sold badly", Liu Hui quite helpless.
many enterprises in the field of Chinese medicine have also used this opportunity to expand their product lines for product reserves.
compared to chemical drugs, Chinese medicine approval varieties, similar varieties and a large number of different products, the market can be traded products are also more choice, which also provides more freedom for enterprises to choose to enter this market.
The price of Chinese medicine approvals, which are saturated by the market competition, is moderate, "some enterprises will buy products like plate blue root to maintain equipment, maintain basic personnel and sales, or to send customers."
" for many production enterprises to buy Chinese medicine approval is more like a reasonable and stable business configuration.
are looking to chinese medicine approval buyers are not only manufacturers.
the past sales teams and individuals involved in the production of Chinese medicine approval transactions enthusiasm is equally high.
" for some sales to master a product is like a wish.
MAH lowers the barriers to entry into drug production, and is undoubtedly the best complement to sales teams or individuals who have accumulated proven commercialization capabilities, while Chinese medicine is a good target.
influx of buyers has also made the product look good.
According to Liu Hui observation enterprises at this point in time will be the hands of chinese medicine approval sold mainly have several considerations: one is the production of batch but does not have the production capacity of enterprises, hope that through the circulation of approval can reduce the cost of re-registration and other expenses;
the first half of the chinese medicine approval price did not change much with the increase in trading volume.
in Liu Hui's view, this is because of the large number of Chinese medicine approved varieties, it is difficult to form a unified pricing standards, more or look at the will of buyers and sellers.
in general, Chinese medicine in health insurance products, exclusive products, general medicine pricing power is greater, and like the plate blue root class of popular medicine approval prices will not be too high.
segments are also important considerations for pricing in transactions.
in the field of anti-fat and antihyuric drugs have obvious advantages, the price of Chinese medicine approval is often not high, and "paediatrics, gynecology can set a higher price."
" high-quality Chinese medicine approval has become a scarce resource, the price will only become more and more expensive.
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