Why did the selling expenses of traditional Chinese medicine enterprises rise sharply in 2018?

[pharmaceutical Station market analysis] at present, among the 293 pharmaceutical and biological enterprises listed in A-share market, almost all of them have disclosed the 2018 annual report According to the statistics of the industry, the sales expenses of 34 pharmaceutical enterprises account for more than 50% of the revenue, of which 15 are traditional Chinese medicine enterprises, 10 are Biopharmaceutical Enterprises, and 9 are chemical pharmaceutical enterprises The top five sales expenses are Shanghai pharmaceutical, Fosun Pharmaceutical, Bubu pharmaceutical, China Resources Sanjiu and Hengrui pharmaceutical, of which Shanghai Pharmaceutical is 11.058 billion yuan, accounting for 6.95% The step size is 8.036 billion yuan, accounting for 58.81% In addition, in traditional Chinese medicine enterprises, sales expenses of Longjin pharmaceutical and Dali pharmaceutical account for a large proportion of revenue, accounting for 72.21% and 67.48% respectively According to the industry, in 2018, traditional Chinese medicine enterprises were mainly affected by policies such as limited auxiliary drugs, medical insurance fee control, two vote system and so on Their performance declined significantly, and their sales faced great pressure, resulting in a significant increase in sales costs Dali pharmaceutical also said in its annual report that with the deepening of medical reform, the adjustment or promulgation of relevant policies and regulations, the strengthening of policy implementation, and the further intensification of market competition for pharmaceutical products, pharmaceutical manufacturers in different fields have been affected by policies to varying degrees, especially the production and sales of traditional Chinese medicine injection manufacturers have been greatly inhibited Once drugs are listed in the list of auxiliary drugs, they will face the risk of being strictly controlled or even stopped by public hospitals It is reported that the two main products of Dali pharmaceutical industry are subject to double restrictions on the level and indications of medical institutions within the scope of medical insurance payment, and the sales volume has declined sharply Although the "two ticket system" has increased the sales price of the company's main products, and the resumption of production and marketing of Cytidine Diphosphate Choline injection has formed a new increase, greatly improving the company's operating revenue, but due to the change of sales mode, the sales cost under the original agent system mode has been changed from the agent to the company, resulting in a substantial increase in the sales cost year on year In response, the industry said that in the past, the development mode of "focusing on sales, ignoring research and development" of traditional Chinese medicine enterprises has been difficult to maintain Only by focusing on research and development, launching more competitive new products, and strengthening the optimization of product structure, can better business results be achieved Just like "if you are in full bloom, butterflies come by themselves", why should you increase investment in sales In addition, the industry also said that the market for the development of traditional Chinese medicine in the future must be outside the public medical institutions Therefore, traditional Chinese medicine enterprises should make efforts in pharmacies, clinics and traditional Chinese medicine hospitals   In fact, the trend of prescription outflow has become more and more obvious in recent years As early as February 9, 2017, the State Office issued several opinions on further reform and improvement of drug production, circulation and use policies, which clearly stated that: Outpatient can choose to purchase drugs in medical institutions or retail pharmacies independently, and medical institutions shall not restrict outpatient to purchase drugs in retail pharmacies by prescription At the same time, the national health and Health Commission and the administration of traditional Chinese medicine banned the trusteeship of pharmacies to further speed up the outflow of prescriptions With the implementation of the pilot work of volume purchase, the grey chain of doctors was cut off The trend of prescription outflow is more obvious, and many regions have issued relevant policies to support it For example, Chongqing issued the "Internet plus medical health" action plan (2018 to 2020) notice in Chongqing at the end of 2018 It was clear that Chongqing decided to start the electronic prescription transfer in 2019, which also indicated the development trend of the industry.