Xinhua News Agency reporters learned from the State Administration of traditional Chinese medicine on the 31st that seven provinces, including Shanghai, Zhejiang, Jiangxi, Shandong, Hunan, Guangdong and Sichuan, were among the first to be approved to build a national demonstration area for comprehensive reform of traditional Chinese medicine. The national demonstration area for comprehensive reform of traditional Chinese medicine takes provinces (autonomous regions and municipalities directly under the central government) as the main construction body, and encourages the first trial in the service mode, industrial development and quality supervision of traditional Chinese medicine.
Boosted by this news, the overall Chinese medicine sector rose by more than 5%, of which Zhejiang Jolly Pharmaceutical Co.Ltd(300181) , Jinghua Pharmaceutical Group Co.Ltd(002349) , Beijing Tongrentang Co.Ltd(600085) , Jianmin Pharmaceutical Group Co.Ltd(600976) , China Resources Sanjiu Medical & Pharmaceutical Co.Ltd(000999) , Zhuzhou Qianjin Pharmaceutical Co.Ltd(600479) and other Chinese medicine stocks rose by the limit, Tianjin Chase Sun Pharmaceutical Co.Ltd(300026) rose by more than 14%.
In fact, since the end of October this year, the index of traditional Chinese medicine sector has been in a shock upward trend, and has strengthened significantly in recent days, becoming one of the strongest sectors at the end of the year. Among them, the industry index has soared 11% since December, a new high in three and a half years.
With the rise of traditional Chinese medicine concept stocks, analysts believe that on the one hand, the covid-19 epidemic has increased people’s trust in the anti epidemic experience of traditional Chinese medicine; On the other hand, due to the recent announcement of the centralized purchase information of traditional Chinese medicine in Hubei and Guangdong, the price reduction range is more “moderate” compared with the centralized purchase of Western medicine. In addition, the continuous positive policy level has lit a fire for the traditional Chinese medicine industry.
In December 30th, the State Health Protection Bureau and the State Administration of traditional Chinese Medicine issued the “guidance on medical insurance to support the development of TCM inheritance and development”. It was proposed that the Chinese medicine institutions should be included in the designated medical insurance and the Internet plus Chinese medicine service should be included in the scope of medical insurance payment. The sales of Chinese Herbal Pieces in hospitals can be increased to 25%.
The approval of the first batch of national demonstration zones for comprehensive reform of traditional Chinese medicine will bring a new golden period of development to traditional Chinese medicine enterprises in 7 provinces, including more than 30 listed companies.
Policy dividends, superimposed on the efforts of traditional Chinese medicine enterprises in R & D in recent years, also let the innovation of traditional Chinese medicine industry release new vitality, and new traditional Chinese medicine drugs continue to emerge.
According to the statistics of Yaozhi data, as of December 16, 58 applications for registration of new traditional Chinese medicine had been accepted in 2021 (accepted number, the same below), an increase of 114.81% compared with 2020. Among them, both clinical application and listing application have reached a new high over the years, with 48 and 10 respectively.
In terms of approval, as of statistics, in 2021, on the basis of emergency approval of Qingfei Paidu granule, Huashi Baidu granule and Xuanfei Baidu granule, the State Food and Drug Administration approved the listing of 8 new traditional Chinese medicine drugs, with a total of 11 new drugs approved for listing, becoming the year with the most new traditional Chinese medicine approved in recent five years. Six of them are class 1.1 new drugs, namely Tasly Pharmaceutical Group Co.Ltd(600535) kunyining granule, Qihuang capsule of Shandong Fenghuang pharmaceutical, jingule tablet of Hunan Hunan Fangsheng Pharmaceutical Co.Ltd(603998) , Jiangsu Kanion Pharmaceutical Co.Ltd(600557) Yinqiao Qingre tablet, Huzhen Qingfeng capsule of Yili pharmaceutical and Suxia Jieyu Chufan capsule of Yiling pharmaceutical.
It is worth mentioning that in the past five years, a total of 19 new traditional Chinese medicine drugs have been approved, of which 8 have been included in the national medical insurance catalogue. Among them, Huashi Baidu granule, Xuanfei Baidu granule and guanhuangmu granule are new varieties of proprietary Chinese medicine in the 2021 medical insurance catalogue. In addition, Huashi Baidu granules and Xuanfei Baidu granules are the products of the “three drugs and three parties” in the fight against the covid-19 epidemic, and have made important contributions to the fight against the epidemic and protecting the people’s lives and health.
Galaxy Securities believes that national policies continue to support the development of traditional Chinese medicine industry; The price reduction of centralized purchase of Chinese patent medicine was moderate, in line with expectations; Recently, the ex factory prices of Angong Niuhuang Pill of Beijing Tongrentang Co.Ltd(600085) and Huoxiang Zhengqi oral liquid of Chongqing Taiji Industry (Group) Co.Ltd(600129) have increased, which has aroused the market’s attention to the price raising ability of brand traditional Chinese medicine. Brand traditional Chinese medicine has both drug and consumption attributes, strong independent consumption and superimposed consumption upgrading. It is basically not affected by the cost control of medical insurance. Brand traditional Chinese medicine has the price raising ability. Multi factor resonance drives the value return of brand traditional Chinese medicine.
Sinolink Securities Co.Ltd(600109) also believes that with the promotion of favorable policies for many years, the traditional Chinese medicine industry has ushered in new opportunities. With the aggravation of the aging process and the increase of the incidence of chronic diseases, it continues to promote the market expansion, epidemic situation and policy support, improve the consumer recognition of traditional Chinese medicine and gradually show its consumption attribute. At the same time, OTC of brand traditional Chinese medicine is expected to usher in development opportunities.
(Shanghai Securities News)
