Four opportunities for Chinese medicine market brought by drug cost control

Source: Village husband's diary January 8, 2016 With the continuous development of policy towards more strict control of drug expenditure, the channel strategy and product focus of drugs entering the hospital and retail end will change in the future Among them, traditional Chinese medicine will be one of the sectors that will be greatly affected The main areas of influence include four aspects: anti infective Drugs, drugs for tumor treatment, OTC The trend of the combination of products and services brought about by the consumerization, and the impact of the deregulation of traditional Chinese medicine granules First of all, the proportion of drugs less than 30% will have a greater impact on the use of drugs in public hospitals In addition to the possibility of increasing the number of examinations and other income to increase the denominator and thus reduce the proportion of drugs, hospitals still have to consider the planning and management of rational use of drugs At present, the largest share of hospital drug use comes from systemic anti infective drugs Although the proportion of hospital drug use has declined year by year, it is still the largest plate In recent years, the state has issued several price adjustment policies, and systemic anti infective drugs bear the brunt of it The drug price has dropped significantly, and traditional antibiotic manufacturers have encountered great bottlenecks However, it also brings development opportunities for traditional Chinese medicine with anti infective effect In the outpatient department, with the trend of canceling the transfusion in outpatient department, the hospital may replace the transfusion with Chinese patent medicine with anti infective effect and some anti infective chemicals with high price in the future In hospital, targeted anti infective injections and oral drugs will maintain their potential On the one hand, it is due to the limitation of some high price anti infective chemicals On the other hand, it is due to the active role of traditional Chinese medicine in combination with chemical medicine treatment However, in hospital medication, especially injection, the choice of medication will be more disease specific The comprehensive consideration of efficacy and cost will become the fundamental competition between traditional Chinese medicine and anti infective chemicals Secondly, it will have a great development prospect to cooperate with tumor treatment and anti immune traditional Chinese medicine At present, tumor and anti immune drugs have been one of the top three sectors of hospital medication With the trend of high incidence and early onset of serious diseases, the demand for such drugs will continue to grow There will be two opportunities for traditional Chinese medicine One is to cooperate with tumor treatment products, such as targeted Chinese medicine, related products to reduce side effects, and products to enhance immunity The second is long-term health care products, such as improving nutrition and absorption, regulating all aspects of the body mechanism These two kinds of demands need relatively professional and targeted traditional Chinese medicine products as a whole The curative effect is very critical and the threshold is high However, once an effective product is developed, a better competition barrier will be formed in a certain field, and the development prospect will be better Third, the competition of Chinese patent medicine in OTC will be more consumer oriented, which includes two aspects First, there is not much room for rapid growth of mature products in a single field However, if the leading products can ensure brand effect and efficacy, they will still have certain inertia advantages But on the other hand, with the bottleneck of pharmacy sales mode, the future may change in the direction of product plus service, and the sales mode of OTC will also change accordingly Products that can cooperate with the retail end to do more user communication and interaction at the C end may come from behind and win in the service field, so as to drive product sales Finally, the regulation of traditional Chinese medicine granules is expected to open up gradually, which will bring opportunities to more competitors in the market, among which there will be a larger growth space for chronic disease related treatment and cancer treatment However, for new entrants, in addition to the quality of products, the establishment of hospital channels and targeted product positioning will be crucial At this point, enterprises that have some experience and characteristics in the field of Chinese Herbal Pieces in hospitals will be able to develop special Chinese herbal granule products in some fields according to their brand advantages and production advantages, which will be very important to open the hospital channel and pave the way for the relatively new product of Chinese herbal granules Once the regulation is released, it is expected that there will be many new entrants, but there will not be too many companies that can quickly occupy the market Mature hospital channels and distinctive products become the key In general, driven by the environment of controlling drug cost and rational drug use, traditional Chinese medicine will have sustainable development potential But at the same time, the market competition will still be very fierce, in a disease or field with professional characteristics and efficacy will become the key to product positioning and promotion At the OTC end, the future cooperation service with retail channels is expected to reverse the traditional mode of product sales, and the product pattern may change accordingly.