The long-term opportunities of the traditional Chinese medicine industry are optimistic, and it is recommended to focus on four main lines

【Pharmaceutical Network Market Analysis】The policy provides continuous support in the inheritance and innovation of traditional Chinese medicine, institutional supply, talent supply, etc.
, and the whole industry chain of traditional Chinese medicine, including research and development, planting, medical services, sales, decoction and other links, is expected to continue to benefit, and the long-term development of the traditional Chinese medicine industry is optimistic
.
Some institutions said that in the future, with the overall support of national policies, there are still opportunities for the valuation of traditional Chinese medicines to improve sectors, and it is recommended to focus on the four main lines
of state-owned enterprise reform, innovative traditional Chinese medicines, traditional Chinese medicine OTC and the elasticity of formula granules.
The main lines of state-owned enterprise reform include Darentang, KunYao Group, Taiji Group, Kang'en Bei and so on
.
Taking Darentang as an example, since the 90s of last century, the company has promoted a number of measures
such as listing and state-owned enterprise reform around the strategy of modernization and reform of traditional Chinese medicine.
Tianjin Pharmaceutical Group, the company's major shareholder, completed the mixed reform in the first half of 2021, gradually activating the innovation mechanism, improving quality and efficiency
.
In May 2022, "Tianjin Zhongxin Pharmaceutical Group Co.
, Ltd.
" officially changed its name to "Jinyao Darentang Group Co.
, Ltd.
" and completed the relevant supporting work
.
Since then, Darentang has broken through the new life and opened a new era
of development.
In the first half of 2022, Darentang fully promoted the implementation
of the overall strategy of "three cores and nine wings" of Jinyao Group.
The company added 28 new hanging products; The four major proprietary Chinese medicine sales segments achieved the medium-term set targets; The quick-acting heart-saving pill achieved revenue excluding tax of 770 million yuan
.
The company has gradually formed a matrix of cardiovascular drug products with quick-acting heart-saving pills as the core, providing multi-disease solutions and forming synergistic effects
.
The realization of the company's "14th Five-Year Plan" goal relies on the construction of the "1+5" strategy, and the performance growth target of the industrial end (basically the proprietary Chinese medicine business) will increase the annual revenue growth rate of not less than 18% from 2023 (of which 2023 will be based on 2021).

Traditional Chinese medicine innovative drugs include Kangyuan Pharmaceutical, Buchang Pharmaceutical, Yiling Pharmaceutical, etc
.
Taking Kangyuan Pharmaceutical as an example, Kangyuan Pharmaceutical's main product line focuses on infectious diseases, gynecological diseases, cardiovascular and cerebrovascular diseases, orthopedic diseases and other areas of traditional Chinese medicine advantages
.
The company integrates cutting-edge technology in life sciences, decodes the material basis and mechanism of action of listed Chinese medicines, continues to promote post-marketing in-depth research of key varieties of medical insurance or basic drugs, carries out evidence-based medical clinical research of major varieties in an orderly manner, and continues to promote
scientific and technological innovation in traditional Chinese medicine.
The institution said that it is optimistic that new drugs in the R&D pipeline of Kangyuan Pharmaceutical will be launched one after another, bringing new performance growth points
.
It is reported that in October 2022, the State Food and Drug Administration approved the marketing of Kangyuan Pharmaceutical's Class 3.
2 traditional Chinese medicine new drug Shan Hanhua Wet Granules for diseases
caused by cold and wet depression.
In addition, Kangyuan Pharmaceutical announced on December 29 that the company recently received the "Drug Registration Certificate"
of Lingguishugan granules issued by the State Medical Products Administration.
Linggui Shugan Granules Indications: warm yang drink, strengthen the spleen and dampness
.
It is used for phlegm drinking
with insufficient yang.
Symptoms include chest and flank fullness, dizziness and palpitations, shortness of breath and cough, white tongue, and smooth pulses
.
Traditional Chinese medicine OTC includes China Resources Sanjiu, Jichuan Pharmaceutical, Sunflower Pharmaceutical, etc
.
Taking CR Sanjiu as an example, CR Sanjiu is an enterprise in the OTC field of traditional Chinese medicine, with layouts
in multiple sectors such as branded traditional Chinese medicine, traditional Chinese medicine prescription drugs, traditional Chinese medicine innovative drugs and formula granules 。 The company's main core business is positioned in OTC (CHC business) and traditional Chinese medicine prescription drugs, OTC core products in cold, gastrointestinal, skin, pediatrics, cough and orthopedic medicine; Prescription drug products in the fields of traditional Chinese medicine formula granules, cardiovascular and cerebrovascular, anti-tumor, anti-infection and other fields, has formed a pattern of steady growth in the field of rehabilitation chronic diseases, accelerated research and development in the fields of severe disease, oncology and orthopedics, accelerated market transformation of anti-infection business, and the layout of the whole industry in the field of traditional Chinese medicine formula granules
.
According to the institution, the main brand of CR Sanjiu's core product "999" enjoys high recognition in the market and the industry, and the new brand building around this is expected to bring a new stage of growth; The continuously optimized terminal structure and expanding channel coverage will further provide impetus for the long-term solid growth of the business and strengthen the company's position
in the OTC market.
The elasticity of formula granules is recommended to pay attention to Red Sun Pharmaceutical, Chinese Traditional Chinese Medicine, etc
.
It is reported that among the listed pharmaceutical companies, China Traditional Chinese Medicine, China Resources Sanjiu, Red Sun Pharmaceutical, Xiangxue Pharmaceutical, Tailong Pharmaceutical and other enterprises are involved in the R&D and production
of Chinese medicine tablets/Chinese medicine formula granules.
In the first half of 2021, the revenue of Chinese herbal tablets (including Chinese medicine formula granules, Chinese medicinal materials, etc.
) of China Traditional Chinese Medicine, Hongri Pharmaceutical, Tailong Pharmaceutical and Shenwei Pharmaceutical was 6.
029 billion yuan, 1.
8 billion yuan, 333 million yuan and 320 million yuan
, respectively.
Although CR Sanjiu did not disclose the sales of sub-products, its operating revenue of traditional Chinese medicine formula granules in 2020 exceeded 2 billion yuan
.
In the first half of 2021, the company's revenue of traditional Chinese medicine formula granules was 5.
32 billion yuan, a year-on-year increase of 16.
4%, and the revenue of traditional Chinese medicine pieces was 710 million yuan, a year-on-year increase of 24.
8%; R&D expenditure was RMB295 million, an increase of 20.
1% year-on-year, one of which was to improve quality standard research, with a focus on formulation granule standard research
.
Disclaimer: Under no circumstances does the information or opinions expressed herein constitute investment advice
to anyone.