You can see the popularity of the "magic medicine" Pien Tze Huang, and see the plight of proprietary Chinese medicine behind the virtual fire

A few days ago, Pien Tze Huang rushed to the hot search with a price of 1,600 yuan.

Insufficient innovation, too much marketing

In 1999, Zhangzhou Pien Tze Huang Pharmaceutical Co.

Not long ago, Zhangzhou Pien Tze Huang Pharmaceutical Co.

Of course, we need to face up to the reality that among China’s pharmaceutical companies, even those listed in the world’s top 50 pharmaceutical companies’ R&D expenditures in revenue are still the same as other pharmaceutical companies on the list.

The overall proportion of R&D is relatively small

R&D costs are low, but promotion costs are generous.

In recent years, China has been vigorously supporting Chinese patent medicines, and many related policies have been introduced

China's traditional medicine must be protected and supported.

The research and development of new Chinese medicines is inherently difficult.

2016-2020 review and approval of TCM IND application and review of TCM NDA status

2016-2020 review and approval of chemical drug IND application

2016-2020 review and approval of chemical drugs NDA

2016-2020 review and approval of biological products IND applications and biological products NDA status

I privately believe that the core of the predicament of Chinese medicine companies lies in the long-term value dislocation.

Rising prices of medicinal materials, pressure on centralized procurement

Earlier this year, the General Office of the State Council issued a document "Opinions on Promoting the Normalized and Institutionalized Development of Centralized and Volume Procurement of Drugs", indicating that in the future, centralized procurement will be normalized and more and more drugs will be included in the trend of centralized procurement

For Chinese patent medicines, centralized procurement puts even more pressure on Chinese medicine companies, and the core of the pressure is price

The price of medicines purchased in quantities has dropped significantly, which does put a lot of pressure on Chinese patent medicines.

The other is that for many Chinese medicine companies, the proprietary Chinese medicines in the centralized procurement list are mostly clinically large varieties, which are blockbuster products of Chinese medicine companies, and some are exclusive varieties.

When centralized procurement is normalized, the review of innovative drugs is accelerated, the medical insurance policy is tilted, the supply side will gradually move closer to the oligarchic pattern, and the concentration of the industry will be further increased.

Gods and bubbles

Everyone has a special enthusiasm for "magic medicine".

Compared with cold data, a group of incomprehensible tables, everyone prefers to watch the story of making magic

Faced with the pressure of centralized procurement, many effective drugs are under price control, but Pien Tze Huang has risen uncharacteristically in headwinds.
The pursuit of capital and the influx of hot money make the magic medicine represented by Pien Tze Huang in the hands of the scalpers like drumming and spreading flowers.
Will stop
.
After the Japanese bubble burst in the 1980s, the lost decade ushered in.
When these companies that depended on the magic drug for survival faced the bubble burst, where should they survive?

Reference materials:

1,http://gg.
cfi.
cn/DetailsInfo2.
aspx?dm=gpdm&type=cb&id=672524648258

2.
CDE 2020 Annual Drug Evaluation Report

3.
https://new.
qq.
com/omn/20210528/20210528A0BOH000.
html

4.
http://