Traditional Chinese medicine formula granules will achieve good growth in the future, and many companies will enter the market

 The traditional Chinese medicine formula granules are prepared by the modern pharmaceutical production technology such as water extraction, concentration, drying, granulation and so on
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In recent years, the market of traditional Chinese medicine formula granules has achieved rapid development
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The data shows that from 2017 to 2020, the market size of China's traditional Chinese medicine formula granules increased from 19.
16 billion yuan to 29.
14 billion yuan, with a compound annual growth rate of about 15%
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It is estimated that in 2022, the market size of the domestic Chinese medicine decoction pieces may reach 344.
15 billion yuan, and the proportion of the revenue of Chinese medicine formula granules is expected to reach 20-30% of the Chinese medicine decoction pieces, about 68.
83-103.
245 billion yuan
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It is understood that with the release of the "Announcement on Ending the Pilot Work of TCM Formula Granules", more and more traditional Chinese medicine companies have participated in the research and development and production of TCM formula granules, which has greatly promoted the development of TCM formula granules.
In addition, the performance of some listed Chinese medicine companies involved in the traditional Chinese medicine formula granule business in 2021 also showed a trend of rapid growth
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Among them, Chinese traditional medicine has a bright performance in traditional Chinese medicine formula granules
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Data shows that in 2021, the net profit of Chinese medicine in China will increase by 16.
2% to 1.
933 billion yuan.
Among them, the turnover of traditional Chinese medicine formula granule products will be about 13.
4 billion yuan, accounting for 70.
3% of the total turnover, and the growth is very obvious
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China Traditional Chinese Medicine stated in the announcement that its turnover growth was mainly due to the obvious advantages of quality controllability and convenience of traditional Chinese medicine formula granules, as well as effective academic promotion, and the market recognition continued to improve, promoting the steady development of the business
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And Hongri Pharmaceutical recently stated on the investor interaction platform that the company has more than 600 kinds of traditional Chinese medicine formula granules, basically covering all varieties with high frequency of clinical use of traditional Chinese medicine
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Judging from the 2021 performance report released by Hongri Pharmaceutical, the "performance responsibility" of Hongri Pharmaceutical is none other than traditional Chinese medicine granules
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The data shows that in 2021, the revenue of Hongri Pharmaceutical’s traditional Chinese medicine formula granules and decoction pieces will reach 4.
235 billion yuan, accounting for 55.
21% of the company’s operating income, more than half, an increase of 41.
60% year-on-year.

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In terms of standard research on traditional Chinese medicine formula granules, China Resources Sanjiu has on the one hand increased standard research efforts, carried out research and application of local formula granule standards, and participated in the establishment of provincial standards for local formula granules; on the other hand, it has focused on authentic medicinal materials and seeds.
Standardized research on the quality of seedlings to ensure the quality of medicinal materials from the source
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Data show that in 2021, China Resources Sanjiu's operating income will increase by 2.
76% year-on-year to 5.
350 billion yuan
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Among them, the specialty and traditional Chinese medicine formula granule business has achieved rapid growth.
It is estimated that China Resources Sanjiu traditional Chinese medicine formula granule business may exceed 3 billion yuan
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It is understood that compared with traditional Chinese medicine decoction pieces, traditional Chinese medicine formula granules have the advantages of safety, effectiveness, convenience, stable and controllable quality, etc.
After long-term national policy guidance and support, China's traditional Chinese medicine formula granules industry is gradually becoming standardized, and the pilot work will end in November 2021.
, production and sales restrictions have been lifted, and the industry has ushered in a broad space for development
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According to the industry, the business of traditional Chinese medicine formula granules will still achieve good growth in the next 2-3 years
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Investigate the reasons: 1.
The further liberalization of medical terminals allows manufacturers to cover more medical institutions and the market capacity will be liberalized; 2.
In the policies for inheritance and innovation of traditional Chinese medicine introduced at the end of last year, there is a need for medical insurance to support traditional Chinese medicine.
The policy is clearer, which is conducive to market expansion; 3.
At present, formula granules are managed with reference to decoction pieces on the medical side, which is conducive to the promotion and use of formula granules in clinical practice and helps to cover more people
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Based on favorable policies and the possibility to expand more channels and clinical users, the future formula granule business market will have a certain growth space and good growth potential
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However, from the perspective of the competitive landscape, because the formula granule business has relatively high requirements for the ability of the whole industry, not all manufacturers have such capabilities, so the business has a certain threshold.
The industry said that in the future, there may be a small number of national business expansion.
The ability of manufacturers, the overall will be orderly competition
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It is reported that since the end of 2021, the pilot work of traditional Chinese medicine formula granules has officially ended.
As of the end of April 2022, more than 50 enterprises of traditional Chinese medicine formula granules have registered for listing (according to the enterprise group, it is expected to be about 40).
Among the companies that have filed for listing are Yangzijiang Pharmaceutical, Yiling Pharmaceutical, Shanghai Pharmaceutical, Tasly, etc.

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Disclaimer: Under no circumstances does the information or opinions expressed in this article constitute investment advice to anyone
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