Under the normalization of centralized procurement of proprietary Chinese medicines, the transformation and upgrading of traditional Chinese medicine enterprises is imminent

At present, 7 batches of centralized procurement of drugs have been carried out at the national level, covering a total of 294 kinds of drugs, covering chemical drugs and biological drugs, calculated according to the pre-procurement price, the amount involved accounts for about 35% of the annual procurement of chemical drugs and biological drugs in public medical institutions, and centralized procurement has become an important way for
public hospitals to purchase drugs.
Under the normalization of centralized procurement of proprietary Chinese medicines, the transformation and upgrading of traditional Chinese medicine enterprises is imminent (Image source: Pharmaceutical Network) In contrast, the national centralized procurement of proprietary Chinese medicines is long overdue
.
On September 8, the National Joint Procurement Office of Proprietary Chinese Medicines was officially established, and the "Procurement Announcement of the National Alliance of Proprietary Chinese Medicines" was issued, with a total of 30 provinces participating in the procurement of the National Proprietary Chinese Medicine Alliance, covering six therapeutic areas
: internal medicine, orthopedic medicine, ophthalmic medicine, tumor medicine, cardiovascular system medicine and gynecological medicine.
This is the first centralized procurement
of proprietary Chinese medicines since the national drug collection was launched in 2018.
The industry believes that this large-scale centralized procurement of proprietary Chinese medicines can be regarded as a sign that the centralized procurement of proprietary Chinese medicines will be normalized, and the reshuffle of the entire industry will accelerate in the future, forming a pattern of "the strong and the strong
".
So in the face of the pattern changes brought about by the normalization of centralized procurement of proprietary Chinese medicines, as well as the trend of price reduction, how should pharmaceutical companies respond? Industry analysts believe that under the new situation, the innovation and upgrading of the proprietary Chinese medicine industry is imperative
.
In fact, innovation is also the direction of
policy support in recent years.
In recent years, the approval and review of traditional Chinese medicines has been significantly accelerated, and the policy measures have become more sound, starting from the aspects of status, research and development, use, and team building, and has been promoting the inheritance and innovation of
traditional Chinese medicine.
With the support of favorable policies, the trend of traditional Chinese medicine innovation has emerged, and a large number of pharmaceutical companies have already joined the
innovation tide.
For example, as of February this year, Yiling Pharmaceutical has approved 11 innovative varieties of traditional Chinese medicine for marketing
.
In the past two years, Yiling Pharmaceutical has successfully developed 3 traditional Chinese medicines, and a number of new Chinese medicine drugs are in the review and clinical stage, according to Guosen Securities and Kaiyuan Securities, Yiling Pharmaceutical will maintain the rhythm
of 1-2 approvals every year.
Lizhu Pharmaceutical has also said that the company is focusing on promoting the research and development progress and layout of new products such as ancient classic Chinese medicine compound new drugs, new drugs with improved dosage forms, and new drugs of class 1 traditional Chinese medicines in hospital preparations, and the product structure of the traditional Chinese medicine sector is expected to continue to be optimized, and the profit level will be further improved
.
It is worth mentioning that Lizhu's 2022 half-year report shows that the total related expenditure on R&D in the first half of the year was 639 million yuan, a year-on-year increase of 17.
22%, and R&D investment accounted for 10.
14%
of revenue.
In addition to innovation, before the launch of national centralized procurement of proprietary Chinese medicines, in fact, many enterprises are still carrying out the layout of the entire industrial chain and actively launching mergers and reorganizations
.
It is reported that at the end of May this year, China Resources Sanjiu issued an announcement that the company intends to purchase 209 million shares and 3.
3355 million shares of Kun Pharmaceutical Group held by it from Holley Pharmaceutical and Holley Group respectively by paying cash, with a total purchase price of about
2.
9 billion yuan.
CR Sanjiu said that after the completion of the above transaction, the company's profitability will be improved, and its comprehensive competitiveness and anti-risk ability will be enhanced, which will help improve the company's asset quality and profitability and enhance its ability to
continue operation.
In addition, Hunan Yineng Biotechnology has invested heavily in building the "Hunan Yineng Biomedical Intelligent Chinese Medicine R&D Base", integrating the research and development of traditional Chinese medicine with emerging technologies such as the Internet, cloud computing, and artificial intelligence
.
The base is expected to be put into use at the end of 2022, and the base can achieve an annual output value of 5 billion yuan
when it is fully completed and reaches production.
In general, the centralized procurement of proprietary Chinese medicines has both opportunities and challenges for
the market and enterprises.
In this context, Chinese medicine enterprises can only win a better future
if they accelerate innovation and grasp the quality and cost through the layout of the whole industry chain.
Disclaimer: Under no circumstances does the information or opinions expressed in this article constitute investment advice
to anyone.