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    Home > Medical News > Latest Medical News > Recently, the price of Chinese medicinal materials has generally risen. How will it affect related listed companies?

    Recently, the price of Chinese medicinal materials has generally risen. How will it affect related listed companies?

    • Last Update: 2021-11-15
    • Source: Internet
    • Author: User
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    Since 2021, affected by factors such as the implementation of the new Chinese Pharmacopoeia, rising costs, foreign investment, and climate, the price of Chinese medicinal materials has increased significantly
    Recently, the prices of traditional Chinese medicinal materials in Shanxi, Shaanxi, Henan and other places have generally risen.
    Among them, the price of raw land has risen from 14 to 40 yuan per kilogram, and the price of Astragalus complanatus has also risen from 43 to 85 yuan

    So, what is the impact for related listed companies? It is understood that the industrial chain of Chinese medicinal materials includes the planting end, the circulation end, and the Chinese patent medicine production end

    Among the Chinese patent medicine manufacturers, some Chinese medicine raw materials related to the medicines of related listed companies have increased significantly

    Regarding the impact of rising raw materials for Chinese medicinal materials, most companies said that the main raw materials of their products are mainly self-grown, which can reduce the cost price fluctuations caused by the rising prices of raw materials

    The prices of natural medicinal materials used in some valuable Chinese medicines have also increased significantly.
    Since most of these materials are sourced from outside, it may have a certain impact on the production costs of related companies

    Taking Chuanxiong as an example, the price of this traditional Chinese medicinal material has risen from 18 yuan to 32 yuan per kilogram.
    There is a planting base for this species in Sichuan

    Pien Tze Huang's Pien Tze Huang raw material is natural bezoar (bile yellow).
    The raw material has risen from 500,000 yuan at the beginning of the year to 650,000 yuan per kilogram.
    However, the company said that the current price of the company's main products is stable and there is no price adjustment information

    Another example is Danshen.
    The herbal medicine has risen from 11 yuan/kg at the beginning of the year to 15 yuan/kg.
    The related product of this raw material is compound Danshen dripping pills.
    Related listed companies include Tasly

    Regarding the increase in the price of raw materials, Tasly responded that the company has its own GAP planting base, and Panax notoginseng also has a strategic reserve of medicinal resources, which can reduce the impact of medicinal material price fluctuations on cost procurement

    In addition, the raw materials of Chinese medicinal materials for many products of Yiling Pharmaceutical have increased.
    For example, the raw material of Tongxinluo capsules, leech, rose from 900 yuan at the beginning of the year to 1,400 yuan per kilogram; the raw materials for forsythia of Lianhua Qingwen capsules Also rose from 58 yuan to 78 yuan per kilogram

    However, the company said that its products are large compound products, and the impact of price changes of a single species is limited.
    The main animal medicine raw materials such as leeches and soil elements are cultivated by themselves, and other important Chinese herbal medicine materials such as green clevis and wild jujube kernels also have their own.
    Planting base

    It is worth mentioning that, in addition to the price increase of raw materials of Chinese medicinal materials, Chinese patent medicine companies are also facing price reduction pressure brought about by policies such as centralized procurement, and the profit margin of related Chinese patent medicine products may be further reduced

    For example, Bailing and Jinshui products that use fermented cordyceps powder as raw materials are included in the collection of proprietary Chinese medicines in 19 provinces

    In this regard, a relevant Chinese patent medicine manufacturer said: “According to the past situation of centralized drug procurement, the price of the product of the winning bidder will be about 20% lower than the current market price

    ” Then, how should the Chinese patent medicine company respond to the centralized procurement.
    Woolen cloth?
    According to industry insiders, the centralized procurement of Chinese patent medicines is the general trend, and enterprises should actively respond, seeking change and innovation on the basis of adapting, conforming and blazing new trails

    However, some fund company analysts believe that due to the high gross profit of branded Chinese patent medicine products, when the price of Chinese medicine raw materials rises, the enterprise can bear it, but it will have a certain impact on corporate profits

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