Chinese medicine companies such as Beijing Tongrentang Co.Ltd(600085) , Jiuzhitang Co.Ltd(000989) , Chongqing Taiji Industry (Group) Co.Ltd(600129) have recently announced price increases for their proprietary Chinese medicine products, involving classic drugs such as Angong Niuhuang Pill and Huoxiang Zhengqi oral liquid. The price increase of pharmaceutical enterprises is mainly due to the rise of raw material prices, and actively take a variety of measures to deal with the pressure of rising costs.
prices of Chinese patent medicines have been raised
Beijing Tongrentang Co.Ltd(600085) announced that from December 1, 2021, the price of Angong Niuhuang Pill will be increased from 780 yuan / box to 860 yuan / box, with a price increase of about 10%. Beijing Tongrentang Co.Ltd(600085) the products are rich in dosage forms, and more than 400 specifications of Chinese patent medicines are produced throughout the year, including ACE products such as Angong Niuhuang Pill, Tongren Niuhuang Qingxin pill and Tongren Dahuoluo pill.
China Securities Journal reporter called Beijing Beijing Tongrentang Co.Ltd(600085) fengkeyuan store to inquire whether there are preferential activities for purchasing Angong Niuhuang pills. The salesperson of the store said: “at present, the sales price is 860 yuan / box. If you buy 11 boxes plus 1 yuan, you can get 1 box free, which is equivalent to about 10% discount.” According to this calculation, the price of each box after the discount is about 788 yuan, which is not much different from that before the price increase. However, the above salesperson said: “the preferential activity may be cancelled at any time. It is rumored that the price of Angong Niuhuang Pill will rise because the raw materials are rare and many people are hoarding goods. After all, the validity period is 5 years.”
There are also China Resources Sanjiu Medical & Pharmaceutical Co.Ltd(000999) and Jiuzhitang Co.Ltd(000989) manufacturers who raise the price of Angong Niuhuang pills. In December 2021, China Resources Sanjiu Medical & Pharmaceutical Co.Ltd(000999) said on the interactive platform that the ex factory price of China Resources Sanjiu Medical & Pharmaceutical Co.Ltd(000999) Angong Niuhuang Pill increased in 2021.
Jiuzhitang Co.Ltd(000989) recently, it also issued a price adjustment notice to customers, raising the supply price or recommended retail price of Chinese patent medicines under 21 product specifications, such as Angong Niuhuang Pill, Liuwei Dihuang pill and Xiaoyao Pill, with a price adjustment range of 6% – 30%. Among them, the price of Angong Niuhuang Pill increased by 12% – 25%, and Liuwei Dihuang pill, which accounts for the largest proportion of OTC product revenue, increased by 10%.
Chongqing Taiji Industry (Group) Co.Ltd(600129) raised the price of Huoxiang Zhengqi oral liquid. In December 2021, Chongqing Taiji Industry (Group) Co.Ltd(600129) said on the SSE e interactive platform that the company had recently adjusted the ex factory price of Huoxiang Zhengqi oral liquid, with an average increase of 12%.
In addition, Tianjin Zhongxin Pharmaceutical Group Corporation Limited(600329) said on the SSE e interactive platform in December 2021 that the price of quick acting Jiuxin Pill would be adjusted in time according to industrial policies to ensure sound operation. Tianjin Zhongxin Pharmaceutical Group Corporation Limited(600329) quick acting heart saving pills are sold all over the country, both in retail (including e-commerce) and medical channels. The production capacity is stable and the market trend is good.
take multiple measures to deal with
The current round of price increase of Chinese patent medicine products is mainly affected by the rise in the price of upstream raw materials.
The raw materials of Angong Niuhuang Pill include natural bezoar, natural musk, pearl, Coptis, etc. Beijing Tongrentang Co.Ltd(600085) the staff of the Securities Department said: “Angong Niuhuang Pill is the best product of the company. The cost of raw materials has risen too high. We really can’t carry it, so we chose to raise the price.”
China Resources Sanjiu Medical & Pharmaceutical Co.Ltd(000999) said that as the overall cost, especially the raw material cost and labor cost, has been rising in recent years, the company has adopted different pricing strategies for different products and different stages of the product cycle while taking into account the patient’s acceptance ability and the company’s mitigation of cost pressure.
In addition to raising product prices, pharmaceutical enterprises have actively taken measures to reduce costs and increase efficiency.
Jiuzhitang Co.Ltd(000989) strengthen the market monitoring of key materials and timely carry out strategic reserve and inventory management to stabilize the risk of price fluctuation of raw materials. At the same time, the company continuously improves the production technology level, optimizes the product production process and controls the production cost.
Chongqing Taiji Industry (Group) Co.Ltd(600129) ensure the supply and price stability of raw materials through the development of its own medicinal material planting base, strategic cooperation with base customers and strategic reserve of bulk medicinal materials; At the same time, the company strengthened cost saving and efficiency increase in production management to reduce the impact of rising prices of medicinal materials on costs.
Tianjin Zhongxin Pharmaceutical Group Corporation Limited(600329) its medicinal material company purchases raw materials in time, effectively and reasonably controls the purchase price and scientifically reserves bulk materials required for industrial production through scientific purchase decision analysis and bidding procurement platform. In addition, the company organizes cost reduction projects every year. Enterprises achieve the goal of reducing production costs through centralized procurement, process improvement, equipment upgrading, energy conservation and consumption reduction, cost reduction and other measures.
large market space
In recent years, the price of traditional Chinese medicine has continued to rise. According to the data of yaotong.com, a Chinese herbal medicine information platform, there were many herbal medicines whose prices increased in 2021, and the Chinese herbal medicine market index rose from 7931.54 at the beginning of the year to 8549.6 at the end of the year. The prices of more than 50 kinds of Chinese herbal medicines doubled in 2021, including white lentils and Eclipta philoxeroides, which increased by more than 800% and 300%.
Zhang Li (pseudonym), the person in charge of a listed Chinese medicine company, told the China Securities Journal: “Since 2020, the price of traditional Chinese medicine has increased significantly due to the superposition of multiple factors. At the same time, in order to better ensure the quality of traditional Chinese medicine products, the policy has strengthened the production guidance and management of traditional Chinese medicine seeds and tightened the quality control of traditional Chinese medicine. In addition, the output of some traditional Chinese medicine planting areas has decreased due to natural disasters, but the demand for traditional Chinese medicine has increased due to the epidemic situation In addition, the imbalance between supply and demand has boosted the price of traditional Chinese medicine. ”
Looking forward to 2022, yaotong.com believes that the production of some high-priced medicinal materials will be restored and the price will gradually decline, but it will not fall too low. It is expected to fluctuate at medium and high prices. The prices of some varieties may continue to rise due to factors such as natural disasters.
Zhang Li’s company has increased the planting of high-quality medicinal materials in recent years. Zhang Li said: “I hope to control the quality of medicinal materials from the source.” The new pharmacopoeia has been officially implemented since December 30, 2020. It has clear requirements for pesticide residues and heavy metal content, and has higher and higher requirements for the quality of traditional Chinese medicine. Zhang Li believes that with the improvement of the state’s attention to the traditional Chinese medicine industry, there is a huge space for the development of the traditional Chinese medicine industry in the future.
The guidance on medical insurance supporting the inheritance, innovation and development of traditional Chinese medicine was issued on December 30, 2021. China Greatwall Securities Co.Ltd(002939) pointed out that with the all-round support of the policy, the payment scope of traditional Chinese medicine medical insurance has been further expanded, which is conducive to the development of traditional Chinese medicine industry.
(China Securities Journal)
