Traditional Chinese medicine has a lot of room for growth in the future, and mergers and acquisitions are being staged in the industry

[Pharmaceutical Network Market Analysis] Traditional Chinese medicine has become a national strate.
A series of policies to encourage and support the development of traditional Chinese medicine, such as the Five "National Health Plan" and "Several Policies and Measures to Accelerate the Development of Traditional Chinese Medicine", have been promot.
Institutions generally believe that the traditional Chinese medicine industry has huge room for growth in the futu.
With the help of favorable policies, the integration and mergers and acquisitions of the pharmaceutical industry have also increased in recent years, and related mergers and acquisitions of pharmaceutical companies have continued to occ.
Just recently, Wanbangde announced that it plans to acquire a 25% stake in Kangchen Pharmaceutical for 4 billion yu.
Kangchen Pharmaceutical is mainly engaged in the business of modern Chinese patent medicines and medical imaging contrast agents, and has strong advantages in the field of urology, especially in the field of traditional Chinese medicine in nephrolo.
According to reports, if the acquisition is successfully completed, Wanbangde will help promote the in-depth cooperation of Consun Pharmaceutical in the field of traditional Chinese medicine, promote the sustainable development of the company's core business of traditional Chinese medicine health, and enhance its core competitivene.
For another example, Jingxin Pharmaceutical announced on June 10 that the company acquired a 8824% stake in Hangzhou Huqingyutang, a traditional Chinese medicine company held by Yuanjin Health with its own funds of 215 million yu.
Prior to this, Jingxin Pharmaceutical has launched a series of mergers and acquisitions, including the announcement on November 8, 2021 that it plans to acquire a 99% stake in Shaxi Pharmaceutical held by Yuanjin Health for 205 million yuan, and Shaxi Pharmaceutical1 held by Jingxin Holdin.
% equity; another plan to acquire 6% equity of Hangzhou Huqingyutang held by Yuanjin Health for 218 million yu.
Through this series of acquisitions, the company plans to expand the layout of the traditional Chinese medicine sector in the futu.
According to the data, Jingxin Pharmaceutical's main business is the research and development, production and sales of chemical preparations, traditional Chinese medicines, biological preparations, chemical raw materials, and medical devic.
In recent years, the company's integration and acquisitions have accelerated, and the business layout includes biomedicine, medical devices, e.
, and the acquisition involves traditional Chinese medicine busine.
Regarding the reasons for the acquisition, Jingxin Pharmaceutical stated in its previous acquisition announcement that the company focuses on the two core areas of neuropsychiatry and cardiovascular and cerebrovascular, with drugs as the core, and medical devices are configured according to clinical nee.
Among them, the traditional Chinese medicine business segment, as the main sub-business outside the two core areas, forms a useful supplement to the two core are.
On the basis of the original traditional Chinese medicine business, the acquisition will effectively integrate industrial resources, strengthen the large variety and brand influence of traditional Chinese medicine, and realize the accelerated development of the traditional Chinese medicine business sect.
It is understood that in the past, traditional Chinese medicine injections were often restricted from use by medical insurance due to adverse events and included in key monitoring catalo.
The overall performance of the traditional Chinese medicine sector was under pressure, and the growth rate of revenue and net profit attributable to the parent gradually declin.
Since 2021, the industry has begun to gradually recov.
Southwest Securities pointed out in the research report that the growth rate of the income of the traditional Chinese medicine sector and the net profit attributable to the parent has passed the low poi.
From 2011 to 2021, the income of the traditional Chinese medicine sector will increase from 99 billion yuan to 319 billion yuan, with a compound growth rate of 15
The net profit attributable to the parent increased from 445 billion yuan to 2284 billion yuan in 2021, and the compound growth rate of the net profit attributable to the parent was 15
The agency predicts that there will be three core logics in the Chinese medicine industry in the future: first, the Chinese medicine policy will benefit the development of the Chinese medicine industry; second, the logic of price increases will gradually be realized; By clarifying the equity relationship, improving the corporate governance mechanism, and enhancing the enthusiasm of employees, the dividends of the mixed-ownership reform of state-owned enterprises will be quickly released in the future, and the rapid growth of performance will be ushered .
Disclaimer: Under no circumstances does the information or opinions expressed in this article constitute investment advice to anyo.