The cost pressure of traditional Chinese medicine companies drops sharply

In the second half of this year, the price of Panax notoginseng, which is widely used in modern Chinese patent medicine, has dropped continuously According to the website of traditional Chinese medicine tiandi.com, the price of 120 top Panax notoginseng in Yunnan Province has been lowered twice in a week in Bozhou pharmaceutical market At present, the price is 11.1% lower than that of last week, and 37.7% lower since July This is undoubtedly an opportunity for related traditional Chinese Medicine companies to reduce the cost pressure Since 2009, the price of March 7th has soared 12 times in four years, from 60 yuan / kg to 800 yuan / kg The industry believes that the decline of March 7th has been basically established, and the bull market in four years has ended, and the future market is bearish Oversupply should be the main reason for the decline of price In more than 30 years, 37 experienced three rounds of bull market, and in 1989, 2006 and 2013, the price of high diving The driving factors of each round of market are the same, that is, the price rise attracts farmers to follow the trend of planting, the increase of planting area leads to the oversupply of supply, the sharp drop of price forces the sharp decrease of planting, and the insufficient production leads to the price rise again The latest round of market started from the drought in Yunnan Province in 2009, with the output of Panax notoginseng declining and the price rising to attract farmers to follow the trend of planting It took 4 years from planting to harvesting, which is also the important reason for the sharp fluctuation of the price of Panax notoginseng Due to the lack of effective supervision and information communication channels, the blind expansion of production and planting has not been effectively resolved At present, the land area of Panax notoginseng has increased to 288000 mu, and the estimated output can reach 10 million kg, while the demand is maintained at 7 million kg What's more worrisome is that the output of 37 in the next two years will continue to rise several times, reaching 61 million Jin in 2015, which will far exceed the market demand As the domestic Panax notoginseng is still mainly used as medicinal materials, the annual growth rate of demand is limited, and the relevant policies of the same origin of Panax notoginseng medicine and food, which are highly expected by the market, have not yet made a substantive breakthrough Nowadays, the price of Panax notoginseng has plummeted, and drug dealers tend to be cautious about purchasing Panax notoginseng, which to some extent accelerates the further decline of Panax notoginseng price For example, the proportion of Panax notoginseng, which used to have a large inventory in the drug trade of Kangmei Pharmaceutical (600518, Guba), has declined significantly From the historical experience, each round of decline of the March 7th has to go through four or five years, so it is difficult to reverse the price of the March 7th in the short term Prices fell continuously and the cost pressure of relevant listed companies eased Panax notoginseng is a unique and precious Chinese herbal medicine in China, which has been recognized as having significant effect of promoting blood circulation and removing blood stasis, eliminating swelling and pain since ancient times Sanqi is also widely used in modern Chinese patent medicine It is the basic raw material of many common drugs, such as Xuesaitong capsule, Xuesaitong tablet, Fufang Danshen tablet, Yunnan Baiyao (000538, Guba), Fufang Danshen dropping pill, etc The raw material cost of Zhongsheng Pharmaceutical (002317, Guba) compound Xueshuantong capsule 70% comes from Sanqi During the 4-year price boom of Sanqi, the listed companies of related traditional Chinese medicine suffered huge cost pressure At one time, some pharmaceutical companies chose to stop production of related drugs Now, the price of March 7th has been falling, the cost pressure of related companies has been reduced, and the gross profit rate of the third quarter report has started to pick up Subsequently, with the price of March 7th entering the decline channel, the cost pressure of such companies will be further relieved.