The traditional Chinese medicine sector hits the limit again, is the market sustainable?

In recent years, policies to support the development and innovation of traditional Chinese medicine have continued to help the development and growth of the traditional Chinese medicine industry
.
On December 31, 2021, the National Medical Insurance Administration and other two departments jointly issued the "Guiding Opinions on Medical Insurance Supporting the Inheritance and Innovation of Traditional Chinese Medicine".
It is necessary to include qualified TCM medical institutions into the designated medical insurance, strengthen the price management of traditional Chinese medicine services, include appropriate traditional Chinese medicine and traditional Chinese medicine medical service items into the scope of medical insurance payment, and improve payment policies suitable for the characteristics of traditional Chinese medicine
.
Affected by this good news, on January 4, 2022, the A-share traditional Chinese medicine sector once again set off a daily limit, including more than 10 traditional Chinese medicine stocks including Xinguang Pharmaceutical, Qianjin Pharmaceutical, China Resources Sanjiu, Jiuzhitang, and Tongrentang
.
In addition, according to Flush data, as of January 4, in the past three months, a total of 31 listed companies in the traditional Chinese medicine sector have increased by more than 30%
.
Among them, Longjin Pharmaceutical, Jingmin Pharmaceutical, and Jianmin Group have doubled their growth rates, and Jichuan Pharmaceutical and Taiji Group have also performed very well
.
At present, the industry is generally concerned about whether the market of the traditional Chinese medicine sector is sustainable? In this regard, some analysts believe that the collective rise of traditional Chinese medicine stocks this time is not only affected by favorable policies, but also related to the restoration of valuations under the rotation of the traditional Chinese medicine sector
.
It is understood that before, the traditional Chinese medicine sector belongs to the segment of the pharmaceutical segment that has been neglected by the capital market.
Now, with the continuous introduction of national policies to support the development of the traditional Chinese medicine industry, the attitude of the capital market has begun to change
.
"In the medium term, with the support of policies, the development prospects of the Chinese medicine industry are worthy of attention, but due to the rapid growth of some individual stocks, we should not chase the high in the short term
.
" However, some voices in the market believe that although the Chinese medicine industry has benefited from favorable policies However, the industry is also under pressure from medical insurance cost control, rationalization of drug use, etc.
, so the long-term investment value of the traditional Chinese medicine industry is hard to find
.
"In the future, most large varieties of traditional Chinese medicine will face continuous price reduction pressure.
The growth of sales volume has entered the market maturity period, and the replacement of new products is generally lacking, so there is no room for continuous improvement in valuation
.
It is undeniable that the innovation of traditional Chinese medicine does have high difficulties.
In recent years, many Chinese patent medicine companies have been discouraged and turned to chemical drugs, biological drugs and other fields
.
Judging from the succession of new traditional Chinese medicine products, those who have successfully passed the examination in recent years The number of new Chinese medicines is not optimistic
.
According to the data from Minet.
com, in 2017, only one new Chinese medicine was approved in China
; It is mentioned that by 2021, a major breakthrough has been made in the number of new Chinese medicines approved in China, which has successfully increased to 12, including 7 innovative Chinese medicines of category 1.
1
.
Among them, Yingke Rui was approved for clinical category 1.
1 innovation in July 2021.
Pharmacological Zhongxiaopi Granules have also won the favor of listed companies
.
On December 28, 2021, Wanbond announced that it signed a strategic cooperation agreement with Yingke Rui.
Research and development cooperation
.
The company will acquire 51% property rights of the clinical trial license of "Class 1.
1 Chinese Medicine Innovative Pharmacology Zhongxiaopi Granules" and its technical secrets held by Yingkerui for 10.
2 million yuan
.
For this cooperation, the industry believes that with more changes in the future The launch of many new Chinese medicines may set off an investment boom in the field of new Chinese medicines
.
In addition, in 2021, China's traditional Chinese medicine clinical applications and approvals will also hit a new high, with a total of 32 Chinese patent medicines obtaining the implied license for clinical trials, including 25 Class 1 innovative drugs, 1 The original 6 new drugs,
etc.