The most comprehensive analysis of formula particles: policy, market, competing products, marketing...

Medical News, April 6th, the anti-epidemic triumphant, the earth rejuvenated, following the pace of spring, people began to be busy.
For the Chinese medicine market, what everyone is most concerned about is the impact of the forthcoming fifth batch of centralized procurement.
Will Chinese patent medicines be included and what will be the price reduction ratio? However, in the traditional Chinese medicine market, there is a segmented area that is enjoying the sunshine of the national support policy, continuous development and continuous growth.
This area is the traditional Chinese medicine formula granules.

 

1.
Market analysis of traditional Chinese medicine formula granules

 

The traditional Chinese medicine formula granules are guided by the theory of Chinese medicine , combined with the new technology of modern preparations, selected the best technology, and adopts industrialized production; its formula is flexible and conforms to the characteristics of traditional Chinese medicine "syndrome differentiation and treatment, adding and subtracting according to the syndrome".
supplement.
In 2001, the State Food and Drug Administration issued the "Interim Regulations on the Management of Traditional Chinese Medicine Formula Granules", officially naming the new dosage form as "Chinese Medicine Formula Granules" and included it in the management of traditional Chinese medicine decoction pieces.
Since then, Chinese medicine granules have developed rapidly.

 

According to the "Blue Book on the Development of Chinese Medicine Decoction Pieces Industry", the market size of Chinese medicine prescription granules has increased from 2 billion yuan in 2010 to 15 billion yuan in 2018, with a compound growth rate of 28.
64%; although the industry will be subject to stricter regulatory policies in the future, the compound annual growth rate will be Slightly lower, but the market size of the Chinese medicine formula granule industry will continue to grow rapidly in the next five years.

 

At the same time, the state is actively strengthening the quality assurance of traditional Chinese medicine formula granules and gradually liberalizing the market of Chinese medicine formula granules.
In November 2019, the National Pharmacopoeia Commission issued the "Publicity on the Pilot Uniform Standards for the Varieties of Chinese Medicine Formula Granules".
According to incomplete statistics, the country has obtained various types of Chinese medicines.
There are 58 enterprises with qualifications for pilot formulation of pellets.

 

Development of the whole industry chain of Chinese herbal medicine

　

2.
Policy analysis of the Chinese medicine formula granule market

 

The rapid growth of the formula particle market is firstly due to the support of national policies, which mainly include the following aspects:

 

1.
"Zero-addition" promotes the popularity of formula particles

 

In May 2017, the former National Health and Family Planning Commission proposed that by September 2017, all public hospitals will cancel all drug additions (except for traditional Chinese medicine decoction pieces).
After this policy is proposed, hospitals will increase the amount of Chinese medicines including Chinese medicine formula granules to reduce losses.
The use of decoction pieces has promoted the expansion of the market scale of traditional Chinese medicine formula granules.
In addition, the 2017 new medical insurance catalogue strictly restricts the use of traditional Chinese medicine injections, which has caused the sales of large varieties of traditional Chinese medicine injections to drop rapidly.
As a substitute, the sales of traditional Chinese medicine formula granules have increased.

 

　　2.
Chinese medicine formula granules belong to the scope of medical insurance overall planning

 

　　At present, most places of traditional Chinese medicine formula granules belong to the scope of medical insurance reimbursement.
This also indirectly encourages doctors to prescribe formula granules and increases the demand for formula granules from patients.
With the further improvement of medical insurance payment policies, the future Chinese medicine formula granules Will be more restricted by medical insurance.

 

　　3.
Accelerating the pace of standardization and standardization

 

　　In November 2019, the National Pharmacopoeia Commission issued the "Announcement on the Pilot Uniform Standards for the Varieties of Formula Granules".
The implementation of this policy will improve the quality standard construction of TCM formula granules, increase the barriers to new entrants, and crack down on the illegal production of small medicines of TCM formula granules.
Enterprises, purify the market, and further regulate the Chinese medicine formula granule industry.
In the same month, the "Technical Requirements for the Quality Control and Standardization of Traditional Chinese Medicine Formula Granules" was released, realizing the overall quality control and effective supervision of formula granules, and the pace of industry standardization and standardization was accelerated.

 

　　4.
The Internet and formula particles are more closely integrated

 

　　With the rapid development of the Internet and the widespread use of network information, many industries have entered the era of "Internet +".
The combination of the Internet and traditional Chinese medicine formula particles provides fast and convenient distribution channels for manufacturers, medical institutions and consumers, and helps the industry to take off.

 

　　Policy comparison of different types of drugs

　　

　　Third, the competitive landscape of the traditional Chinese medicine formula granule market

 

　　Facing such a blue ocean market, more and more companies have paid attention.
In July 2001, the State Food and Drug Administration issued the "Interim Regulations on the Management of Traditional Chinese Medicine Prescription Granules", which clearly included TCM formula granules into the management of traditional Chinese medicine decoction pieces.
Since then, the management and control of the qualifications of the pilot production enterprises of traditional Chinese medicine formula granules has been strictly controlled, and only 6 enterprises across the country have obtained this qualification.
These six Chinese medicine companies include China Resources Sanjiu, Jiangyin Tianjiang Pharmaceutical Co.
, Ltd.
, a subsidiary of Shanghai Jahwa, Beijing Kangrentang Pharmaceutical under Hongri Pharmaceutical, Peili (Nanning) Pharmaceutical Co.
, Ltd.
, and Sichuan New Green Pharmaceutical Technology Development Co.
, Ltd.
, Guangdong Yifang Pharmaceutical (acquired by Tianjiang Pharmaceutical).

 

　　However, with the liberalization of policies in recent years, more and more companies have set foot in the field of traditional Chinese medicine formula granules.
According to incomplete statistics, there are 58 companies nationwide that have obtained various types of Chinese medicine formula granules pilot qualifications.
Among them, there are many strong players, such as Hebei Shenwei Pharmaceutical.
The company's traditional Chinese medicine formula granules maintained a rapid growth trend.
Sales revenue from 2016 to 2019 achieved high growth rates of 273%, 138% and 60%, and domestic sales ranked sixth.
At the end of 2019, the price of traditional Chinese medicine formula granules in Hebei Province was reduced, and the company's products were exchanged at price.
The product advantages of Chinese medicine formula granules were highlighted and brought a large number of product increments to the company.
Following the opening of relevant Chinese medicine formula granules policies, the market is expected to continue to increase in the future.

 

　　At the same time, Sunway Pharmaceuticals is also relying on its establishment of Sunway Spree Pharmaceuticals in Yunnan to develop its market share of traditional Chinese medicine formula granules in Yunnan.

 

　　Distribution of pilot enterprises of traditional Chinese medicine formula granules in various provinces across the country

 

 

　　Fourth, the marketing path of Chinese medicine formula granule companies

 

　　As a new type of traditional Chinese medicine preparations, formula granules must be accepted by patients, and doctors must first do their jobs, through doctors’ prescriptions and recommendations, to expand the influence of formula granules and increase their sales.
According to the final application terminal of the formula particles, we can divide the sales path into two models, one is the marketing model of grade hospitals, and the other is the marketing model of primary clinics.

 

　　Grade hospitals use large amounts and have a large impact.
It is undoubtedly the key terminal of marketing.
However, the formula granules are different from the finished medicines and can be prescribed separately.
They need to be compatible with each other.
The requirements are to be equipped on the hospital site, which imposes on the material and manpower of the hospital.
Claim.
At present, the basic mode at the hierarchical hospital side is to establish a separate formula granule pharmacy in the hospital through cooperation with the hospital project, and through the promotion of the manufacturer, to achieve the purpose of product prescription and increase.

 

　　Compared with grade-level hospitals, the work of primary clinics is relatively simple.
Because formula particles have a large space, they are often loved by clinicians.
The key task is to educate doctors, improve their academic knowledge, and ensure the prescription of formula particles.
Effectiveness and safety.

 

　　Other sales terminals also include retail terminals, and their sales promotion model is mainly based on retail sales and display.

 

　　5.
Risks and Challenges Facing Enterprises of Chinese Medicine Formula Granules

 

　　As the emerging market continues to grow and develop, Chinese medicine formula granule companies are also facing risks and challenges.

 

　　1.
Policy changes

 

　　Local medical insurance has different attitudes towards TCM formula granules.
Zhejiang, Yunnan, Beijing and other places have included TCM formula granules in medical insurance, while Heilongjiang and Fujian have the opposite.
Uncertain policies may lead to unstable operation of the industry.

 

　　2.
Quality of medicinal materials

 

　　Chinese medicinal materials are the source of the development of the Chinese medicine formula granule industry, and the quality of medicinal materials is directly related to the efficacy of the finished medicine.
Traditional Chinese medicinal materials have the dual attributes of agricultural products and medicines, but many growers only use general agricultural product management methods to treat Chinese medicinal materials, causing environmental pollution in the production area, disappearing authenticity, and reducing the medicinal properties of Chinese medicine formula particles.

 

　　3.
Evaluation criteria

 

　　In the review stage, the new medicines of traditional Chinese medicine formula granules overemphasized the standards of chemical medicines, but ignored the characteristics of overall regulation of traditional Chinese medicines and treatment based on syndrome differentiation.
In addition, the approval team has more professionals with a Western medicine background than Chinese medicine practitioners.
In the review process, it is more likely to be inclined to check with the standards of Western medicine, and the professionalism is not enough.

 

　　4.
Compliance marketing

 

　　In recent years, the country has continuously issued policies that emphasize the academic and compliance of clinical publicity, and the medical representative registration system has also had an impact on the marketing model of companies .
"Strong academics and weak customer sentiments" have become the only choice for companies.

 

　　Chinese medicine is the treasure of the motherland and the inheritance of the motherland's culture.
As a market field that has not yet been fully developed, what awaits us are opportunities and challenges.
Only from the perspective of serving patients, through market-oriented operations and professional construction, will there be more development.

 

　　 "The East wants to know, no monarch walks early.
Traveling all over the green hills, people are not old, and the scenery is unique here.
" This is a sentence from Chairman Mao Zedong's "Qingpingle Huichang", from which we also saw the piece of decoction The vast market, and this opportunity that is beckoning us, but this kind of opportunity will always belong to those companies that are prepared, thoughtful, and actionable.

　　Medical News, April 6th, the anti-epidemic triumphant, the earth rejuvenated, following the pace of spring, people began to be busy.
For the Chinese medicine market, what everyone is most concerned about is the impact of the forthcoming fifth batch of centralized procurement.
Will Chinese patent medicines be included and what will be the price reduction ratio? However, in the traditional Chinese medicine market, there is a segmented area that is enjoying the sunshine of the national support policy, continuous development and continuous growth.
This area is the traditional Chinese medicine formula granules.

 

　　1.
Market analysis of traditional Chinese medicine formula granules

 

　　The traditional Chinese medicine formula granules are guided by the theory of Chinese medicine , combined with the new technology of modern preparations, selected the best technology, and adopts industrialized production; its formula is flexible and conforms to the characteristics of traditional Chinese medicine "syndrome differentiation and treatment, adding and subtracting according to the syndrome".
supplement.
In 2001, the State Food and Drug Administration issued the "Interim Regulations on the Management of Traditional Chinese Medicine Formula Granules", officially naming the new dosage form as "Chinese Medicine Formula Granules" and included it in the management of traditional Chinese medicine decoction pieces.
Since then, Chinese medicine granules have developed rapidly.

 

　　According to the "Blue Book on the Development of Chinese Medicine Decoction Pieces Industry", the market size of Chinese medicine prescription granules has increased from 2 billion yuan in 2010 to 15 billion yuan in 2018, with a compound growth rate of 28.
64%; although the industry will be subject to stricter regulatory policies in the future, the compound annual growth rate will be Slightly lower, but the market size of the Chinese medicine formula granule industry will continue to grow rapidly in the next five years.

 

　　At the same time, the state is actively strengthening the quality assurance of traditional Chinese medicine formula granules and gradually liberalizing the market of Chinese medicine formula granules.
In November 2019, the National Pharmacopoeia Commission issued the "Publicity on the Pilot Uniform Standards for the Varieties of Chinese Medicine Formula Granules".
According to incomplete statistics, the country has obtained various types of Chinese medicines.
There are 58 enterprises with qualifications for pilot formulation of pellets.

 

　　Development of the whole industry chain of Chinese herbal medicine

　

　　2.
Policy analysis of the Chinese medicine formula granule market

 

　　The rapid growth of the formula particle market is firstly due to the support of national policies, which mainly include the following aspects:

 

　　1.
"Zero-addition" promotes the popularity of formula particles

 

　　In May 2017, the former National Health and Family Planning Commission proposed that by September 2017, all public hospitals will cancel all drug additions (except for traditional Chinese medicine decoction pieces).
After this policy is proposed, hospitals will increase the amount of Chinese medicines including Chinese medicine formula granules to reduce losses.
The use of decoction pieces has promoted the expansion of the market scale of traditional Chinese medicine formula granules.
In addition, the 2017 new medical insurance catalogue strictly restricts the use of traditional Chinese medicine injections, which has caused the sales of large varieties of traditional Chinese medicine injections to drop rapidly.
As a substitute, the sales of traditional Chinese medicine formula granules have increased.

 

　　2.
Chinese medicine formula granules belong to the scope of medical insurance overall planning

 

　　At present, most places of traditional Chinese medicine formula granules belong to the scope of medical insurance reimbursement.
This also indirectly encourages doctors to prescribe formula granules and increases the demand for formula granules from patients.
With the further improvement of medical insurance payment policies, the future Chinese medicine formula granules Will be more restricted by medical insurance.

 

　　3.
Accelerating the pace of standardization and standardization

 

　　In November 2019, the National Pharmacopoeia Commission issued the "Announcement on the Pilot Uniform Standards for the Varieties of Formula Granules".
The implementation of this policy will improve the quality standard construction of TCM formula granules, increase the barriers to new entrants, and crack down on the illegal production of small medicines of TCM formula granules.
Enterprises, purify the market, and further regulate the Chinese medicine formula granule industry.
In the same month, the "Technical Requirements for the Quality Control and Standardization of Traditional Chinese Medicine Formula Granules" was released, realizing the overall quality control and effective supervision of formula granules, and the pace of industry standardization and standardization was accelerated.

 

　　4.
The Internet and formula particles are more closely integrated

 

　　With the rapid development of the Internet and the widespread use of network information, many industries have entered the era of "Internet +".
The combination of the Internet and traditional Chinese medicine formula particles provides fast and convenient distribution channels for manufacturers, medical institutions and consumers, and helps the industry to take off.

 

　　Policy comparison of different types of drugs

　　

　　Third, the competitive landscape of the traditional Chinese medicine formula granule market

 

　　Facing such a blue ocean market, more and more companies have paid attention.
In July 2001, the State Food and Drug Administration issued the "Interim Regulations on the Management of Traditional Chinese Medicine Prescription Granules", which clearly included TCM formula granules into the management of traditional Chinese medicine decoction pieces.
Since then, the management and control of the qualifications of the pilot production enterprises of traditional Chinese medicine formula granules has been strictly controlled, and only 6 enterprises across the country have obtained this qualification.
These six Chinese medicine companies include China Resources Sanjiu, Jiangyin Tianjiang Pharmaceutical Co.
, Ltd.
, a subsidiary of Shanghai Jahwa, Beijing Kangrentang Pharmaceutical under Hongri Pharmaceutical, Peili (Nanning) Pharmaceutical Co.
, Ltd.
, and Sichuan New Green Pharmaceutical Technology Development Co.
, Ltd.
, Guangdong Yifang Pharmaceutical (acquired by Tianjiang Pharmaceutical).

 

　　However, with the liberalization of policies in recent years, more and more companies have set foot in the field of traditional Chinese medicine formula granules.
According to incomplete statistics, there are 58 companies nationwide that have obtained various types of Chinese medicine formula granules pilot qualifications.
Among them, there are many strong players, such as Hebei Shenwei Pharmaceutical.
The company's traditional Chinese medicine formula granules maintained a rapid growth trend.
Sales revenue from 2016 to 2019 achieved high growth rates of 273%, 138% and 60%, and domestic sales ranked sixth.
At the end of 2019, the price of traditional Chinese medicine formula granules in Hebei Province was reduced, and the company's products were exchanged at price.
The product advantages of Chinese medicine formula granules were highlighted and brought a large number of product increments to the company.
Following the opening of relevant Chinese medicine formula granules policies, the market is expected to continue to increase in the future.

 

　　At the same time, Sunway Pharmaceuticals is also relying on its establishment of Sunway Spree Pharmaceuticals in Yunnan to develop its market share of traditional Chinese medicine formula granules in Yunnan.

 

　　Distribution of pilot enterprises of traditional Chinese medicine formula granules in various provinces across the country

 

 

　　Fourth, the marketing path of Chinese medicine formula granule companies

 

　　As a new type of traditional Chinese medicine preparations, formula granules must be accepted by patients, and doctors must first do their jobs, through doctors’ prescriptions and recommendations, to expand the influence of formula granules and increase their sales.
According to the final application terminal of the formula particles, we can divide the sales path into two models, one is the marketing model of grade hospitals, and the other is the marketing model of primary clinics.

 

　　Grade hospitals use large amounts and have a large impact.
It is undoubtedly the key terminal of marketing.
However, the formula granules are different from the finished medicines and can be prescribed separately.
They need to be compatible with each other.
The requirements are to be equipped on the hospital site, which imposes on the material and manpower of the hospital.
Claim.
At present, the basic mode at the hierarchical hospital side is to establish a separate formula granule pharmacy in the hospital through cooperation with the hospital project, and through the promotion of the manufacturer, to achieve the purpose of product prescription and increase.

 

　　Compared with grade-level hospitals, the work of primary clinics is relatively simple.
Because formula particles have a large space, they are often loved by clinicians.
The key task is to educate doctors, improve their academic knowledge, and ensure the prescription of formula particles.
Effectiveness and safety.

 

　　Other sales terminals also include retail terminals, and their sales promotion model is mainly based on retail sales and display.

 

　　5.
Risks and Challenges Facing Enterprises of Chinese Medicine Formula Granules

 

　　As the emerging market continues to grow and develop, Chinese medicine formula granule companies are also facing risks and challenges.

 

　　1.
Policy changes

 

　　Local medical insurance has different attitudes towards TCM formula granules.
Zhejiang, Yunnan, Beijing and other places have included TCM formula granules in medical insurance, while Heilongjiang and Fujian have the opposite.
Uncertain policies may lead to unstable operation of the industry.

 

　　2.
Quality of medicinal materials

 

　　Chinese medicinal materials are the source of the development of the Chinese medicine formula granule industry, and the quality of medicinal materials is directly related to the efficacy of the finished medicine.
Traditional Chinese medicinal materials have the dual attributes of agricultural products and medicines, but many growers only use general agricultural product management methods to treat Chinese medicinal materials, causing environmental pollution in the production area, disappearing authenticity, and reducing the medicinal properties of Chinese medicine formula particles.

 

　　3.
Evaluation criteria

 

　　In the review stage, the new medicines of traditional Chinese medicine formula granules overemphasized the standards of chemical medicines, but ignored the characteristics of overall regulation of traditional Chinese medicines and treatment based on syndrome differentiation.
In addition, the approval team has more professionals with a Western medicine background than Chinese medicine practitioners.
In the review process, it is more likely to be inclined to check with the standards of Western medicine, and the professionalism is not enough.

 

　　4.
Compliance marketing

 

　　In recent years, the country has continuously issued policies that emphasize the academic and compliance of clinical publicity, and the medical representative registration system has also had an impact on the marketing model of companies .
"Strong academics and weak customer sentiments" have become the only choice for companies.

 

　　Chinese medicine is the treasure of the motherland and the inheritance of the motherland's culture.
As a market field that has not yet been fully developed, what awaits us are opportunities and challenges.
Only from the perspective of serving patients, through market-oriented operations and professional construction, will there be more development.

 

　　 "The East wants to know, no monarch walks early.
Traveling all over the green hills, people are not old, and the scenery is unique here.
" This is a sentence from Chairman Mao Zedong's "Qingpingle Huichang", from which we also saw the piece of decoction The vast market, and this opportunity that is beckoning us, but this kind of opportunity will always belong to those companies that are prepared, thoughtful, and actionable.