Event Guide
The core variable of formula particle volume. On March 14, 2022, Fujian Medical Insurance Bureau issued the notice of Fujian Medical Security Bureau on doing a good job in the medical insurance management of traditional Chinese medicine formula particles, which will hang the network of traditional Chinese medicine formula particles, apply for hanging the network according to the current national provincial minimum hanging price, and implement price linkage.
Key investment points
Event: Fujian Medical Insurance notice was issued, and the formula particles were included in the medical insurance reimbursement
On March 14, 2022, Fujian Medical Insurance Bureau issued a notice on doing a good job in the medical insurance management of traditional Chinese medicine formula granules, which will strengthen the procurement management. The notice will go into effect from April 1, 2022:
(1) online declaration: the traditional Chinese medicine formula particles used in public medical institutions at the fixed point of internal medical insurance in Fujian Province shall be traded online through the joint limited price purchase platform of pharmaceutical machinery in Fujian Province; The price linkage can be implemented according to the lowest online price of the whole province for the traditional Chinese medicine formula particles that have been listed and sold in Fujian Province and cross provincial sales records, as well as the traditional Chinese medicine formula particles produced according to the Executive Standards of Fujian Province before November 1, 2021.
(2) payment scope of medical insurance: the qualified traditional Chinese medicine formula granules shall be reimbursed according to 70% of the sales price, and the provisions on the limited payment scope of the corresponding traditional Chinese medicine decoction pieces shall be implemented by reference; In addition, public medical institutions can sell the traditional Chinese medicine formula granules purchased according to the regulations at a premium of no more than 15% of the purchase price.
Viewpoint: enhanced terminal payment capacity drives the growth of demand for Formula Particles
Since the beginning of 2021, there have been frequent positive policies related to formula policies: in February 2021, the State Food and drug administration, the State Administration of traditional Chinese medicine, the State Health Commission and the State Medical Insurance Administration jointly issued the announcement on ending the pilot work of traditional Chinese medicine formula granules; On December 30, 2021, the office of the state medical security administration and the office of the State Administration of traditional Chinese medicine jointly issued the guiding opinions on medical insurance supporting the inheritance, innovation and development of traditional Chinese medicine, which clearly pointed out that the qualified pieces of traditional Chinese medicine, Chinese patent medicine and traditional Chinese medicine preparations of medical institutions should be included in the list of Medicare drugs according to the regulations. The notice issued by Fujian Medical province this time will become the first province in China where traditional Chinese medicine formula particles can be reimbursed. Combined with the spirit of the documents of the national medical insurance bureau and the administration of traditional Chinese medicine and the analysis of the implementation of Fujian policies, we expect that more policies for terminal payment of formula particles will be implemented throughout the country, driving the demand of the whole industry. On the whole, the enhancement of terminal payment capacity will further drive the growth of demand for traditional Chinese medicine formula granules.
Investment advice
The policy encourages traditional Chinese medicine formula granules, but the industry is also in the early stage of development, and many industry access standards and medical insurance access rules are not mature. We suggest paying attention to companies with integrated production advantages, guaranteed product quality and more complete sales network construction; Considering the price reduction trend of centralized purchase, we also suggest paying attention to companies with more large-scale advantages at the production end to better cope with the pressure of price reduction. In conclusion, it is suggested to pay attention to leading enterprises such as Chinese traditional medicine, Tianjin Chase Sun Pharmaceutical Co.Ltd(300026) , China Resources Sanjiu Medical & Pharmaceutical Co.Ltd(000999) and so on.
Risk tips
Policy implementation is not urgent and expected; Industry competition intensifies; The development of the industry is less than expected.
