Policy increases, the proximity of collection and procurement have forced the transformation and upgrading of Chinese medicine enterprises

In recent years, the Party Central Committee and the State Council have placed the development of traditional Chinese medicine in a prominent position, made a series of major decisions and deployments, and continuously optimized the development environment of traditional Chinese medicine.
The scientific and technological revolution has advanced by leaps and bounds, and innovation has become the source driving force
leading the high-quality development of traditional Chinese medicine.
Under the superposition of multiple factors, the traditional Chinese medicine industry has ushered in a period of rapid development, the scale of the industry has been continuously improved, and the service field has been expanding
.

 

Today, at the press conference of the National Health Commission, Wu Zhendou, director of the Department of International Cooperation of the State Administration of Traditional Chinese Medicine, released a set of figures: The State Administration of Traditional Chinese Medicine, together with the Ministry of Science and Technology, the Health Commission and other ministries and commissions, has built 14 national key laboratories, 2 national clinical research centers for traditional Chinese medicine, 5 national engineering technology research centers, 5 national engineering research centers, and 6 national engineering laboratories; Together with the National Development and Reform Commission, build 40 national clinical research bases for traditional Chinese medicine; Layout and construction of 175 key research offices
of the State Administration of Traditional Chinese Medicine.

 

01.
The policy is intensively introduced, and the industry is developing rapidly

 

The support of the Party Central Committee and the State Council for the scientific and technological innovation of traditional Chinese medicine has increased steadily, and at the same time, the "going out" of traditional Chinese medicine has also entered the fast lane and taken new steps, achieving a series of remarkable results
.

 

According to Wu Zhendou, Chinese medicine has spread to 196 countries and regions, China has signed special cooperation agreements with more than 40 foreign government (regional) competent institutions and international organizations, and carried out the construction of 30 high-quality overseas centers of traditional Chinese medicine, 75 international cooperation bases of traditional Chinese medicine, and 31 national export bases of traditional Chinese medicine services
.
TCM is included in 16 free trade agreements
.
The Tibetan Medicine Bath Law is inscribed on the UNESCO Representative List of the Intangible Cultural Heritage of Humanity
.
Promote the establishment of the International Organization for Standardization of Traditional Chinese Medicine Technical Committee (ISO/TC249), and successively formulate and promulgate 89 international standards for
traditional Chinese medicine.
Promote the adoption of the Resolution on Traditional Medicine by the World Health Organization and the release of the World Health Organization Strategy for Traditional Medicine 2014-2023
.
The 11th Revision of the International Classification of Diseases (ICD-11) incorporates for the first time a chapter on traditional medicine with traditional Chinese medicine as the main body
.
In addition, we will support the construction of the Guangdong-Hong Kong-Macao Greater Bay Area in the Guangdong-Hong Kong-Macao Greater Bay Area and the exchange of traditional Chinese medicine on both sides of the strait, and jointly promote the "going out" of
traditional Chinese medicine.

 

The good news goes far beyond that
.

 

Li Yu, director of the Department of Science and Technology of the State Administration of Traditional Chinese Medicine, said at today's press conference: The Ministry of Science and Technology and the Bureau of Traditional Chinese Medicine recently jointly released the "14th Five-Year Plan" Special Plan for the Innovation of Traditional Chinese Medicine Science and Technology, and the state will continue to strengthen the construction of the scientific and technological support platform of traditional Chinese medicine, promote the systematic interpretation and innovation of the original theory of traditional Chinese medicine, explain the core pathogenesis of traditional Chinese medicine to treat major diseases, optimize the prevention and treatment plan, strengthen the creation of new drugs in traditional Chinese medicine and the research and development of key technologies and equipment of traditional Chinese medicine, and play a good leading and supporting role in the high-quality development of traditional Chinese medicine
。

 

Just yesterday, the "Implementation Plan for the Special Activities of Healthy China Action in Traditional Chinese Medicine Health Promotion" jointly issued by the Healthy China Action Promotion Office, the General Office of the National Health Commission and the Office of the State Administration of Traditional Chinese Medicine was officially listed on the network and announced to the
public.
The implementation plan clearly proposes to give full play to the unique advantages and important role of traditional Chinese medicine in treating pre-existing diseases, focusing on the whole life cycle maintenance, health management of key populations, prevention and treatment of major diseases, popularizing the health knowledge of traditional Chinese medicine, implementing comprehensive prevention and control of traditional Chinese and Western medicine, and further playing the role
of traditional Chinese medicine in the healthy China action.
It is worth noting that "exploring the orderly connection between commercial insurance and basic medical insurance, and encouraging qualified regions to support commercial insurance companies to launch traditional Chinese medicine characteristic health insurance products" has also been clearly written into the plan
.

 

The intensive introduction of traditional Chinese medicine policies has vigorously supported the expansion of traditional Chinese medicine services and created good conditions
for transformation and upgrading.

 

"At present, the industrial system based on Chinese medicine agriculture, Chinese medicine business as the link, and Chinese medicine industry as the main body is increasingly perfect, and the industrial development trend is good
.
According to the statistics of the national pharmaceutical industry, the main revenue of the Chinese medicine industry has increased from 515.
6 billion yuan in 2012 to nearly 700 billion yuan
in 2021.
Qin Huaijin, deputy director of the State Administration of Traditional Chinese Medicine, said
at a recent press conference.

 

02, the cost soared, enterprises are facing multiple pressures

 

According to the 2022 semi-annual financial report, the total revenue of the 73 companies belonging to the Shenwan Chinese Medicine III segment was 171.
445 billion yuan, an increase of only 1.
72%
compared with 168.
539 billion yuan in the same period last year.
The total net profit attributable to the mother was 16.
709 billion yuan, a sharp decrease of 14.
31%
compared with 19.
5 billion yuan in the same period last year.
Among them, the profit growth in the second quarter was -24.
63%, and in the context of the disturbance of the epidemic and the increase in the price of raw materials, the profit side of traditional Chinese medicine enterprises was obviously under pressure
.

 

It is understood that the abnormal drought since July this year has caused a significant reduction in the production of Chinese medicinal materials in Yunguichuan and Gansu, and the prices of Chinese medicinal materials in these production areas have risen sharply, and the prices of some varieties have doubled
compared with the same period last year.
For proprietary Chinese medicine companies, soaring prices of Chinese herbal medicines will bring inevitable cost pressures
.

 

"After 2020, the price of Chinese herbal medicines has increased
more generally.
" People in the Chinese medicine industry told reporters, "The price of raw materials has risen, the price of proprietary Chinese medicines has declined, and it is inevitable that the revenue of Chinese medicine enterprises will be under pressure after the
collection.
" ”

 

On September 22, the national collection of proprietary Chinese medicines began
.
According to the "National Proprietary Chinese Medicine Alliance Procurement Announcement (No.
1 of 2022)" issued by the National Proprietary Chinese Medicine Joint Procurement Office on September 9, the collection of proprietary Chinese medicine alliances led by Hubei involves 30 provinces and regions across
the country.
The catalogue of purchased varieties contains 42 products in 16 categories, involving drugs for oncology diseases, drugs for cardiovascular and cerebrovascular diseases, ophthalmic drugs, anti-swelling and analgesic drugs and other major categories
.

 

"DRG/DIP payment methods can be said to be all negative
for proprietary Chinese medicines and Chinese medicine injections.
" A medical insurance policy research expert recently told reporters, "For medical institutions, in the DRG model, it must be at the lowest price to achieve the most immediate therapeutic effect, which is not in line with the characteristics of
proprietary Chinese medicine.
" ”

 

03.
Invest heavily in research and development to build a new pattern of traditional Chinese medicine industry

 

In recent years, a number of listed Chinese medicine companies have gradually increased the proportion of R&D investment in revenue, and the amount of investment has increased significantly compared with the past, especially last year and this year
.

 

Taking Yunnan Baiyao as an example, from 2018 to 2020, the research and development expenses of Yunnan Baiyao were 112 million yuan, 174 million yuan and 181 million yuan, accounting for 0.
35%, 0.
41%, 0.
59% and 0.
55%
of the current operating income, respectively.
However, in 2021, the research and development expenses of Yunnan Baiyao increased by 82.
99% year-on-year, reaching 331 million yuan
.
In the half-year financial report of this year, which was just released not long ago, Yunnan Baiyao disclosed that it invested 129 million yuan in research and development in the first half of the year, an increase of 21.
54%
year-on-year.

 

In the first half of this year, the listed company with the largest investment in research and development in the Chinese medicine sector was Tasly
.
According to the financial report, Tasly invested 466 million yuan in research and development in the first half of 22 years, accounting for 11.
61% of its pharmaceutical industry revenue, an increase of 81.
66%
year-on-year.
The company's R&D investment in 2021 was 761 million yuan, an increase of 26.
90%
over 2020.

 

Baiyun Mountain is close behind, with R&D investment reaching 441 million yuan
in the first half of 222.
It invested 879 million yuan in research and development in 2021, an increase of 42.
10%
over 2020.
The investment direction includes new drug development, generic drug consistency evaluation, product secondary development and food and health food development
.

 

In fact, in the first half of 2022, a total of 50 listed Chinese medicine companies showed an increase
in R&D expenses compared with the same period last year.
Among them, the R&D expenditure of 35 enterprises increased by more than 10% year-on-year, and the R&D expenditure of 9 enterprises increased by more than 60%.

 

A number of national-level blockbuster policies such as the "14th Five-Year Plan" National Drug Safety and Promotion of High-quality Development, the "14th Five-Year Plan for the Development of Traditional Chinese Medicine" and other national blockbuster policies have been introduced, continuously increasing support for the traditional Chinese medicine industry and encouraging innovation in the traditional Chinese medicine industry; It also puts forward high requirements
for the quality of Chinese herbal medicines, quality control of traditional Chinese medicines, and standardized production.

 

Under the requirements of policy dividends and industry norms, Chinese medicine enterprises must accelerate the pace
of product innovation.
And domestic pharmaceutical companies are also breaking people's inherent impression
of "heavy sales, light research and development" of traditional Chinese medicines.