Chinese medicine is on the rise, and the $2 trillion market needs to take advantage of these opportunities

Since 2017, there have been more than 50 mergers and acquisitions in the Chinese medicine industry, the same number as in 2016. Chinese medicine tablets, traditional Chinese medicine, to Chinese hospitals, Chinese medicine clinics, etc. , industrial capital has set its sights on the whole industrial chain of Chinese medicine health services. Chinese medicine industry is ushering in a benign era of development.Chinese medicine
domestic consumers were once keen to buy luxury goods abroad, but with the rise of China's economy, such as Gree air conditioning, Huawei mobile phones, Lenovo computers and other domestic brands have also been favored by consumers. Chinese medicine has always been a treasure of our country, with the country's legislative support and the deepening of consumer understanding of Chinese medicine, the development prospects of Chinese medicine will climb all the way.Chinese medicine industry will reach 2 trillion yuan in the next five years
how big is China's pharmaceutical industry? According to statistics, in 2016, the total value of the pharmaceutical industry reached 220 billion, of which about 700 billion shares belong to the Chinese medicine industry (excluding hospitals, medical services). The industry estimates that in 2021, the revenue of the Chinese medicine industry will exceed 2 trillion yuan, and the compound growth rate of the Chinese medicine industry will exceed 22% in the next decade.Investment Case:
In June 2016, Beijing Qiji Technology Co., Ltd.'s "Doctor Seeing" Mobile Medical Network Platform received 8 million yuan of venture capital from the "Top College Incubator" Angel, and in December of that year, "Doctor's Watch" announced that it had received 50 million YUAN A-round investment led by Zhonglu Capital Investment Co., Ltd. And "see a doctor" is an online appointment of Chinese medicine outpatient treatment electronic platform, including health conditioning, Chinese medicine weight loss, Chinese medicine consultation, medicine dietary therapy, Chinese medicine beauty, health and wellness and many other projects.
September 22, 2016, the pharmaceutical listed company Kangmei Pharmaceuticals announced that it intends to jointly invest 1.5 billion yuan with Chongqing Chemical Medical Holdings (Group) Co., Ltd. to build Kangmei Pharmaceuticals (Nanchuan) product processing base in Chongqing Nanchuan District, Chongqing Province. The project will be built into chinese medicine drink tablets, Chinese medicine formula particles and Chinese medicine as one of the southwest region's largest deep processing base of Chinese medicine.The Chinese Medicine Law has been put into effect
the Chinese Medicine Law, which was considered and adopted by the Standing Committee of the National People's Congress on July 1, 2017
and the Chinese Medicine Law has reformed and innovated the existing management system in chinese medicine clinics, access for Chinese medicine practitioners, and management of Chinese medicine. The new regulations adapt to the development law of Chinese medicine, in line with the characteristics of Chinese medicine management system, including the Chinese medicine clinic from licensing management to record management, after the practical skills and effect assessment qualified to obtain the qualification of Chinese medicine practitioners;
in the "Internet plus" and graded diagnosis and treatment in full swing, Chinese medicine can play its advantages in the field of health care, chronic disease rehabilitation.
The logic of future investment in Chinese medicine is to promote the scale, chaining and branding of Chinese medicine, adopting an investment model based on industrial investment, with merger and acquisition investment as an extension, and driving the commercialization, industrialization and capitalization of the whole Chinese medicine treatment through professional services.The current situation of the development of Chinese medicine in China
As of the end of May 2017, there were 3,994 domestic API and preparation plants, including 2,080 Chinese medicine enterprises and 1,592 Chinese medicine tablet enterprises. Among them, Chinese medicine was 722.3 billion yuan, up 9% YoY, accounting for 23%, while Chinese medicine tablets were 204.2 billion yuan, up 13% YoY, accounting for 6%.
2016, china's pharmaceutical industry profits of 69.8 billion yuan, up 5.7% YoY, and Chinese medicine tablets industry profits of 14.2 billion yuan, up 14.1% YoY. The production capacity of China's Chinese medicine tablet processing industry is expected to grow to 5.3 million tons in 2017 and 6.5 million tons in 2022.of Chinese medicine
is divided into four links: raw material processing, pharmaceutical manufacturing, pharmaceutical circulation and pharmaceutical services.
The main participants in raw material processing are pharmaceutical farmers, beverage tablet production enterprises, etc.;
manufacturing industry is mainly involved in pharmaceutical research institutes, institutions of higher learning, pharmaceutical enterprises, etc.;
the main participants in the circulation industry are pharmaceutical enterprises, third-party logistics companies, retail pharmacies, pharmaceutical e-commerce, etc.; and
services include Chinese hospitals, Chinese medicine restaurants, Chinese medicine data services, etc.
Last year, there were more than 100 stores of the chain of pharmacies have 5 business patterns, no more than 100 stores have 3 business patterns, many large, medium and small cities are 4 businesses, now, online pharmacies and Chinese medicine projects and pharmacies are the most popular.chinese medicine investment trends and thinking
process planning, systematic enterprises, control the high-quality Chinese medicine raw materials base of enterprises have an advantage. Now Chinese medicine is most worried about raw materials, if the control of high-quality base enterprises have a natural advantage.
In addition, will also cast some management norms of Chinese medicine drink tablets regional leading enterprises, Chinese medicine modern formula particle enterprises, old-fashioned, ethnic medicine and with a certain brand advantages of Chinese medicine enterprises, with research and development capabilities, potential varieties of innovative Chinese medicine enterprises.
Chinese medicine institutions accounted for 5.8% of the financial allocation, in fact, we believe that the development of Chinese medicine has risen to the height of national strategy. The regional center general hospital with wide radiation is large in scale and has a large number of Chinese medicine brands. You have a number of famous medical resources in hand, and form a certain chain, which has investment value.
We invest in the whole industry chain, open up upstream and downstream, pay attention to mergers and acquisitions integration opportunities, for Chinese medicine we hope to have some mergers and acquisitions of the target, hope that the Chinese medicine industry has greater support. Fairly speaking, the risk of chinese medicine investment is relatively low, but to do a good job of long-term investment preparation, together to help the development of Chinese medicine. (Taishan Hui Health Finance)