In the traditional Chinese medicine industry chain in 2023, these three tracks are optimistic

【Pharmaceutical Network Market Analysis】 Looking back on 2022, the performance of representative companies in the traditional Chinese medicine industry maintained steady growth, and related categories such as Q4 cold and fever, heat clearing and detoxification performed well
.
Data show that in 2021, the scale of China's traditional Chinese medicine market reached 430.
2 billion yuan, and it is expected that in 2022, the scale of the traditional Chinese medicine market will further increase to 481.
8 billion yuan
.
Looking forward to 2023, with the support of policies, the traditional Chinese medicine industry chain will continue to be optimistic
.
It is reported that recently, China issued the "Outline of the Strategic Plan for Expanding Domestic Demand (2022-2035)", in which the outline pointed out that it is necessary to provide multi-level medical and health services, actively develop the cause of traditional Chinese medicine, focus on increasing high-quality traditional Chinese medicine medical treatment, health care, rehabilitation, health tourism and other services, and comprehensively promote the construction of
a healthy China.
In addition, after 2020, China has issued a number of policies to support the development of the traditional Chinese medicine industry, such as on December 21, 2020, the State Food and Drug Administration issued the Implementation Opinions on Promoting the Inheritance and Innovation and Development of Traditional Chinese Medicine, vigorously promoting the innovation and development of
China's traditional Chinese medicine industry 。 2021 Guiding Opinions on Medical Insurance to Support the Inheritance and Innovation and Development of Traditional Chinese Medicine; The release of policies such as the 2022 Development Plan for Promoting the High-quality Integration of Traditional Chinese Medicine into the Belt and Road Initiative (2021-2025) and the 14th Five-Year Plan for the Development of Traditional Chinese Medicine have strongly supported the development of the Chinese medicine industry and pointed out the direction
for the development of the Chinese medicine industry.
Analysts pointed out that driven by the support of national policies, the growth of residents' income levels and the enhancement of people's health awareness, the market size of China's traditional Chinese medicine industry is growing
.
Among them, in the traditional Chinese medicine industry chain, some institutions said that they are optimistic about traditional Chinese medicine medical treatment (Gushengtang), traditional Chinese medicine consumer goods (China Resources Sanjiu, Tongrentang, Taiji Group, etc.
), and innovative traditional Chinese medicine (Yiling Pharmaceutical, Kangyuan Pharmaceutical, etc.
).

Traditional Chinese Medicine As an important part of China's pharmaceutical industry, TCM plays a pivotal role, supporting its rapid growth
in terms of policy support, market recognition and demand.
According to relevant data, it is expected that the scale of the traditional Chinese medicine industry will reach 2,242 billion yuan by 2030, and the CAGR will reach 11.
3%
from 2019 to 2030.
Among them, the market size of traditional Chinese medicine services in 2019 was 292 billion yuan, and it is expected that the scale will reach 1,839 billion yuan by 2030, with a CAGR of 18.
2%, which shows that this field has huge growth space
.
Gusheng Tang has built an "online + offline" OMO model, the core of which is to break through the time and space barriers of consultation in the traditional mode, and solve the pain points
of unbalanced physician resources, customer follow-up and long-term health management in various regions.
At present, with the Internet diagnosis and treatment is highly valued, and Gushengtang, as a linkage online and offline TCM service enterprise and chain grassroots service enterprise, its business model superiority will be further highlighted
.
With the continuous increase of support for Internet medical treatment, graded diagnosis and treatment, and traditional Chinese medicine informatization in follow-up policies, the company will also become a continuous beneficiary.

Traditional Chinese medicine consumer goods Analysts pointed out that in the past two years, the traditional Chinese medicine industry has been continuously policyd, "crossing the main line of medical insurance" of traditional Chinese medicine consumer goods "medical insurance immunity"
.
The development of traditional Chinese medicine consumer goods has ushered in development opportunities, and future performance is expected to explode
.
Looking back at Q1-Q3 of 2022, the revenue of 5 Chinese medicine consumer goods was 27.
8 billion yuan (+6.
2%); net profit attributable to owners of RMB2.
2 billion (+22%); The net profit of non-attributable parent was 2.
2 billion yuan (+39%), benefiting from the marginal improvement of industry policies, showing strong resilience
in the impact of the epidemic.
Taking CR Sanjiu as an example, CR Sanjiu is backed by China Resources Group and forms two main business segments
of CHC health consumer goods and prescription drugs through endogenous + epitaxy 。 Some institutions said that the company's CHC business is expected to continue to maintain steady growth, formula granules are about to increase to contribute to new business increments, it is expected that in 2022-2024, China Resources Sanjiu will achieve operating income of 16.
773 billion yuan, 19.
472 billion yuan, 22.
391 billion yuan, an increase of 9%, 16%, 15% year-on-year, and achieve a net profit attributable to the parent of 2.
356 billion yuan, 2.
777 billion yuan, 3.
221 billion yuan, a year-on-year increase of 15%, 18%, 16% And Taiji Group, data show, In the first three quarters of 2022, the company achieved a total operating income of 10.
544 billion yuan, a year-on-year increase of 10.
17%; The net profit attributable to the parent was 249 million yuan, a year-on-year increase of 0.
35%.

For future development, Taiji Group said that the company will adhere to the concept of inheriting and innovating the development of traditional Chinese medicine, continue to promote the strategic management model of "gathering strength, overall planning to win, adaptability and long-term development", and achieve the strategic goal of "three Tai Chi" through "three steps": to create a Tai Chi that is strategically consistent, integrated and synergistic, and organically integrated, to create a light, coordinated and powerful Tai Chi that runs quickly, and to create a Tai Chi
with high-quality development and rapid growth 。 Innovative Chinese Medicines In recent years, in order to encourage innovation in Chinese medicines, the NMPA has successively issued a series of documents to promote the registration and application of new Chinese medicines, such as in September 2020, the State Food and Drug Administration issued the "Registration Classification of Chinese Medicines and Requirements for Application Materials", which broadened the scope of improved new drugs and encouraged the secondary development
of traditional Chinese medicines.
In August 2021, the Center for Drug Review of the State Food and Drug Administration issued the Technical Guidelines for Pharmaceutical Research of Traditional Chinese Medicine Compound Preparations Managed According to the Catalogue of Ancient Classic Formulas (for Trial Implementation), which clarified the basic principles and relevant requirements for pharmaceutical research of such preparations around the characteristics of traditional Chinese medicine compound preparations managed according to the Catalogue of Ancient Classic Formulas
.
Driven by a series of favorable policies, innovative Chinese medicine drugs continue to achieve new breakthroughs, data show that 11 marketing applications (11 varieties) of innovative Chinese medicine drugs were approved in 2021; In 2022, a total of 6 innovative Chinese medicine drugs were approved
.
Looking forward to 2023, innovative Chinese medicine is one of
the key tracks to focus on.
Among them, Yiling Pharmaceutical is a representative enterprise
in the track of innovative drugs in traditional Chinese medicine.
It is reported that after 30 years of development, Yiling has built a set of innovation systems with its own characteristics, such as system innovation, theoretical innovation, product innovation, technological innovation, and talent innovation, and has continuously overcome difficulties in a strong innovation environment, and has developed 13 innovative drugs with independent intellectual property rights, achieving significant curative effects
in the fields of major intractable diseases such as cardiovascular and cerebrovascular diseases, diabetes, respiratory diseases, tumors, and neuropsychiatric diseases.
The industry said that the innovation of traditional Chinese medicine has been supported by policies, and the speed of approval and registration of new traditional Chinese medicine drugs is expected to accelerate, and it is optimistic about the innovative drug sector of traditional Chinese medicine in 2023
.
Disclaimer: Under no circumstances does the information or opinions expressed herein constitute investment advice
to anyone.