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    Home > Medical News > Latest Medical News > Traditional Chinese Medicine: The New Favorite of the Capital Market

    Traditional Chinese Medicine: The New Favorite of the Capital Market

    • Last Update: 2022-03-09
    • Source: Internet
    • Author: User
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    Recently, the stock price of the traditional Chinese medicine sector has skyrocketed, and the traditional Chinese medicine industry has ushered in new hope
    .

    Now, I will sort out some performances of traditional Chinese medicine in the capital market, so as to have a simple understanding of the traditional Chinese medicine sector in the capital market
    .

    01 Long-term downturn

    01 Long-term downturn

    Since the release of the State Council Document No.
    44 in 2015, the pharmaceutical industry has launched a clinical value-oriented movement.
    Traditional Chinese medicine, which is mainly based on experience, has been affected by many adverse effects, especially with the introduction of the first batch of national key monitoring and rational drug use catalogues in 2019.
    "Western medicine does not prescribe traditional Chinese medicine", which makes this trend more and more obvious
    .

    In addition to the severe damage to traditional Chinese medicine injections, the entire Chinese patent medicine has been affected, and the valuation of traditional Chinese medicine by the capital market is getting lower and lower.
    For example, in the past three years, the traditional Chinese medicine sector has only increased by 36%, only 1/229% of the growth rate of the medical service sector.
    6.
    It is far lower than all other pharmaceutical sub-sectors except the pharmaceutical business, which greatly weakens the confidence in the development of the traditional Chinese medicine industry.
    Many traditional Chinese medicine enterprises transform into big health, western medicine and even medical beauty
    .

    02 Sudden surge

    02 Sudden surge

    Since the second half of last year, the stock price of the traditional Chinese medicine sector has risen rapidly, and the increase in the first two weeks has increased again, becoming the leader of the growth of all pharmaceutical sub-sectors, which is more than double the growth rate of the second-ranked pharmaceutical business
    .

    There are many reasons for this.
    In addition to the transfer of funds for innovative drugs and the callback of the traditional Chinese medicine sector, it is also related to the large increase in the number of new traditional Chinese medicines approved by the State Food and Drug Administration in 2021, and the lack of price reduction for centralized procurement of traditional Chinese medicines in Hubei, which has been introduced in recent years.
    The cumulative effect of a large number of policies to encourage the development of traditional Chinese medicine has gradually emerged
    .

    The Medical Insurance Bureau has clarified that Chinese medicine does not implement DRG for the time being.
    On the 5th of this month, the "Guidelines for Communication and Communication Technology Based on the "Three Combinations" Registration Review Evidence System (Draft for Comment)" The Evidence System for Registration and Approval of Traditional Chinese Medicine (“Three Combinations” of Approval Evidence System), which combines medical theory, human experience and clinical trials, has taken another step forward, giving a stimulant to the long-term sluggish Chinese medicine industry
    .

    Among the top 15 listed pharmaceutical companies in terms of stock price increase in December last year (excluding individual stocks and ST stocks within one month of listing), there are 9 Chinese medicine companies, accounting for two-thirds, which has never happened in recent years.
    Longshen Rongfa, Longjin Pharmaceutical, etc.
    have daily daily limit for several consecutive days
    .

    03 Companies that have more than doubled in the past 10 years

    03 Companies that have more than doubled in the past 10 years

    Looking at the traditional Chinese medicine sector over time is more objective.
    In the past 10 years, among the more than 70 listed traditional Chinese medicine companies, 18 have more than doubled their share prices, and only 4 have more than doubled.
    Pien Tze Huang has grown by 21 times in 10 years.
    In the past 2021, its total market value once exceeded 260 billion
    .

    Although the capital market has its own development laws and cannot be equated with the industry, the recent positive performance of the capital market on the Chinese medicine industry has definitely stimulated the confidence of the Chinese medicine industry.
    to the development of the Chinese medicine industry
    .


    The traditional Chinese medicine industry, which has been sluggish for a long time, is about to usher in high-quality development


    (Original abridged)

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