Is it more and more difficult for Chinese patent medicine companies to increase the price of a large number of Chinese herbal medicines?

01 The price of a large number of Chinese herbal medicines has risen

Recently, the traditional Chinese medicine sector has attracted much attention from the capital market

With the increase in the popularity of traditional Chinese medicine, the price trend of Chinese medicinal materials is also the focus of the entire industry

According to the latest data from the Chinese Herbal Medicine World.

Taking raw/rehmannia glutinous rice as an example, the price increase will be as high as 300% in 2021, and the price of Eclipta chinensis will also increase by more than 200%

Varieties that will increase by more than 100% in 2021

Varieties that will increase between 50% and 100% in 2021

(Data source: Chinese Herbal Medicine World Network)

For the price increase of Chinese herbal medicines, CCTV Finance Channel has made a special report before

According to reports and analysis, the main reason for the increase in the price of Chinese medicinal materials in this round is caused by the imbalance between supply and demand

Taking peony as an example, according to Zhang Fengming, president of the Bozhou Association of Chinese Medicinal Materials in Anhui, white peony is a normal yield of about 1,000 kilograms per mu, but this year averaged 800 kilograms per mu, a 20% reduction in yield.

With the official implementation of the 2020 edition of the Pharmacopoeia, the testing standards for heavy metals and pesticides residues in Chinese medicinal materials have been improved

Recently, the author visited the Qingping Chinese herbal medicine market in Guangzhou and found that, as one of the largest Chinese herbal medicine trading markets in the country, the prices of many common Chinese herbal medicines in the Qingping Chinese herbal medicine market have also risen to varying degrees.

02 Chinese patent medicine companies are under pressure

As the raw materials of Chinese patent medicines, the price increase of Chinese herbal medicines will definitely have an impact on Chinese patent medicines, but it depends on whether the impact is delayed or immediate

According to Wind data, since October 2021, Yunnan Baiyao, Xintian Pharmaceutical, Guizhou Bailing, China Resources Sanjiu, Jiuzhitang and other traditional Chinese medicine companies have been asked about raw material price increases or price increases in institutional surveys

According to CCTV, the price of Beijing Tongrentang Angong Niuhuang Pills (3g*pill/box) sold in retail pharmacies has been raised from 780 yuan to 860 yuan, which is a nationwide price increase starting in early December 2021

The price adjustment notice issued by Jiuzhitang a few days ago shows that the supply price or suggested retail price of 21 Chinese patent medicines, including Angong Niuhuang Pill, Liuwei Dihuang Pill, Xiaoyao Pill, etc.

Taiji Group also stated on the investor relations interactive platform on December 21, 2021 that it will adjust the ex-factory price of its Huoxiang Zhengqi Oral Liquid, with an average increase of 12%

For the price increase of Chinese patent medicine, many pharmaceutical companies attribute the reason to the general price increase of traditional Chinese medicine raw materials due to factors such as climate and planting area, especially the scarcity of superimposed resources of precious and fine raw materials and the impact of contradiction between supply and demand

It can be seen that for Chinese patent medicine enterprises, the soaring prices of Chinese herbal medicines will bring inevitable cost pressure to them

03 Procurement of proprietary Chinese medicines is here

In addition to the increase in the price of Chinese herbal medicines and the price increase of Chinese patent medicines, the recent attention in the field of traditional Chinese medicines is also the procurement of Chinese patent medicines in volume
.

According to the news from the National Medical Insurance Bureau on January 12, in the centralized procurement of proprietary Chinese medicines in 19 provinces led by Hubei, 182 products from 157 companies participated in the quotation, with a procurement scale of nearly 10 billion yuan; in the end, 97 companies and 111 products In the election, the selection rate reached 62%, and the average price of the selection dropped by 42.
27%, with the largest drop of 82.
63%
.
This is the first batch of procurement by the Chinese patent medicine alliance in the country, and it is also the vane of the follow-up centralized procurement of Chinese patent medicines
.