Favorable policies frequently show that the performance of traditional Chinese medicine enterprises is expected to be more than happy

According to the data, as of the press time of February 8, 33 of the 71 traditional Chinese medicine enterprises in Shanghai and Shenzhen had disclosed the performance forecast of 2021. Among them, 20 companies are pre happy, accounting for more than 60%. Seven companies doubled their performance, of which Dong-E-E-Jiao Co.Ltd(000423) net profit increased by more than 888% and Zhejiang Conba Pharmaceutical Co.Ltd(600572) by more than 325%. Insiders said that with the support of policies, the traditional Chinese medicine industry will face more development opportunities.

innovative traditional Chinese medicine

Among the 20 listed traditional Chinese medicine enterprises, the performance of traditional Chinese medicine innovative drugs is particularly bright. The net profit of Zhejiang Conba Pharmaceutical Co.Ltd(600572) and Tasly Pharmaceutical Group Co.Ltd(600535) increased by more than 100%, and their R & D expenses exceeded 100 million yuan in the first three quarters. In addition, a number of listed companies announced that the sales of innovative traditional Chinese medicine product lines were gratifying.

On January 28, Tianjin Chase Sun Pharmaceutical Co.Ltd(300026) released the performance forecast. It is estimated that the net profit attributable to the shareholders of the listed company in 2021 will be 631 million yuan to 746 million yuan, with a year-on-year increase of 10.05% – 30.10%. The reason for the increase is that the traditional Chinese medicine formula granule business continues to strengthen the national production capacity layout, continuously improve the market coverage and stock market penetration, and the revenue and profit have increased significantly compared with the previous year.

According to the performance forecast released on January 18, the net profit attributable to shareholders of listed companies is expected to be 165 million yuan to 190 million yuan in 2021, with a year-on-year increase of 53.68% to 76.96%. During the reporting period, the company focused on the high Maori core products and increased the promotion efforts. The income of high profit products such as Ding Er Er navel paste, Xiao Zhong Zhitong sticker, Coix bud Jianpi gel and children Qingyan Antipyretic Oral Liquid has increased significantly, prompting the company’s operating performance in 2021 to grow significantly.

In addition, Zhejiang Jolly Pharmaceutical Co.Ltd(300181) it is estimated that the net profit attributable to shareholders of Listed Companies in 2021 will be 170 million yuan to 187 million yuan, with a year-on-year increase of 91.44% to 110.58%. The company said that during the reporting period, based on the advantages of three core products of Wuling capsule, bailing tablet and Lingze tablet entering the national catalogue of essential drugs, the company adhered to the marketing strategy of “stable self operation, strong investment promotion, retail distribution and full module”, and continued to increase market investment and development coverage of terminal medical institutions, resulting in rapid growth in the operating income of the three.

Zhu Guoguang, an analyst in the pharmaceutical industry, said that traditional Chinese medicine has advantages in treating chronic diseases. Under the background of aging and consumption upgrading, the consumption attribute of traditional Chinese medicine promotes its rapid volume; The increase of national standards, the rise of the price of traditional Chinese medicine decoction pieces, and the increase of the price of traditional Chinese medicine formula granules and OTC products led to the increase of gross profit margin.

Take Angong Niuhuang Pill and Zhangzhou Pientzehuang Pharmaceutical Co.Ltd(600436) which are representative products of OTC as examples. Due to the price increase of natural bezoar and musk, the price of Zhangzhou Pientzehuang Pharmaceutical Co.Ltd(600436) Chinese market increased 11 times from 2005 to 2021, with an increase of 372%; The price of Angong Niuhuang Pill of Beijing Tongrentang Co.Ltd(600085) increased three times, up 145.71%.

policy support

It is pointed out that the opinions on the development of traditional Chinese medicine in the catalogue of traditional Chinese medicine institutions issued by the State Administration of traditional Chinese medicine in 2021 are in line with the requirements of the State Administration of traditional Chinese medicine on the development of traditional Chinese medicine, and it is clear that it will support the implementation of traditional Chinese medicine in the catalogue of traditional Chinese medicine in 2021; According to the affordability of the fund and clinical needs, all localities will include qualified ethnic medicines, traditional Chinese medicine preparations and traditional Chinese medicine decoction pieces of medical institutions into the payment scope of local medical insurance according to procedures, and establish a dynamic adjustment mechanism.

On January 17, Zhejiang Medical Insurance Bureau issued a notice to further implement the implementation opinions, and put forward the index of “medium treatment rate” for the first time, marking the quantitative transformation of the policy standard for measuring traditional Chinese medicine services. “Middle treatment rate” involves the proportion of the sum of the three incomes of traditional Chinese medicine decoction pieces, traditional Chinese medicine medical service items and traditional Chinese patent medicine in the hospital medical income. The treatment rate of traditional Chinese medicine medical institutions is linked to the positive incentive of medical insurance payment.

On January 30, the Ministry of industry and information technology and other nine departments jointly issued the “14th five year plan” for the development of pharmaceutical industry, which mentioned that the development of new traditional Chinese medicine should be guided by clinical value, and the development of new traditional Chinese medicine should be carried out in various ways, such as combination of disease and syndrome, special disease and syndrome traditional Chinese medicine, focusing on the development of compound traditional Chinese medicine preparations based on ancient classics and famous prescriptions, and the transformation of traditional Chinese medicine preparations in medical institutions into new traditional Chinese medicine; Carry out the secondary development of Chinese patent medicine and develop large varieties of traditional Chinese medicine. Industry insiders believe that there will be a large variety of traditional Chinese medicine with single product sales peak exceeding chemical and biological drugs.

In addition, the first joint mining of national inter provincial traditional Chinese medicine (materials) Procurement Alliance was launched in Shandong on January 6. The joint mining scope of the alliance covers the types of traditional Chinese medicine such as decoction pieces of traditional Chinese medicine (including formula particles), Chinese patent medicine and so on. The alliance was initiated and established by Shandong Medical Insurance Bureau and 11 provinces (districts and cities) across the country. The first batch of participating areas covered 86 cities and more than 9500 medical institutions. The first batch of joint mining focuses on traditional Chinese medicine decoction pieces (including formula particles), which will be completed in the first quarter of 2022.

Zhejiang Jolly Pharmaceutical Co.Ltd(300181) said during the institutional research that centralized drug purchase is the general trend, and the company will actively study the centralized purchase policies of various regions and take measures to deal with them effectively. Under the background of the state’s strong support for the development of traditional Chinese medicine industry, the company will further strengthen the research and evidence accumulation of core products, promote the mechanism research and evidence-based clinical medicine research of Wuling series and bailing tablets, give full play to the product characteristics, seize the market opportunities brought by the combination of traditional Chinese and Western medicine and the optimized treatment scheme of combined medication, and realize the continuous growth of the company’s business performance.

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