Chinese medicine welcomes heavy benefits again!
On March 29, the general office of the State Council issued the "14th five year plan" for the development of traditional Chinese medicine, which made it clear that by 2025, the health service capacity of traditional Chinese medicine will be significantly enhanced, the high-quality development policies and system of traditional Chinese medicine will be further improved, the revitalization and development of traditional Chinese medicine has achieved positive results, and its unique advantages in the construction of a healthy China will be brought into full play. In order to achieve the above objectives, the plan puts forward ten tasks, such as building a high-level traditional Chinese Medicine Inheritance and protection and scientific and technological innovation system, promoting the high-quality development of traditional Chinese medicine industry, developing traditional Chinese medicine health service industry, and accelerating the open development of traditional Chinese medicine.
Industry insiders believe that in 2022, the traditional Chinese medicine industry is expected to usher in an upward turning point with the support of policies and medical insurance. The inheritance and development of traditional Chinese medicine enterprises, the traditional Chinese medicine formula granule industry embraces market expansion and standard and quality improvement, the innovative traditional Chinese medicine is accelerated to be approved into medical insurance, and the traditional Chinese medicine goes to sea at the right time, waiting for performance fulfillment and value revaluation.
strengthen key areas
The plan proposes to build a high-level traditional Chinese Medicine Inheritance and protection and scientific and technological innovation system. It is required to strengthen tackling key problems in key areas. Increase support for scientific and technological innovation of traditional Chinese medicine in national scientific and technological plans such as scientific and technological innovation 2030 - major projects and key R & D plans. We will carry out diagnosis, treatment and clinical research on the prevention and treatment of major, refractory, rare diseases and emerging infectious diseases with traditional Chinese medicine. Strengthen the research and development of new traditional Chinese medicine based on ancient classic prescriptions, famous and old traditional Chinese medicine empirical prescriptions, effective components or components. Support the innovative research and development of Chinese patent medicines for children.
Xiao Wei, academician of the Chinese Academy of engineering and Jiangsu Kanion Pharmaceutical Co.Ltd(600557) chairman of the board of directors, told the China Securities Journal China Securities Taurus reporter that the plan is a programmatic document to promote the development of China's traditional Chinese medicine in the new era, which will effectively promote the development of the traditional Chinese Medicine industry into a new stage and make the achievements of the development of traditional Chinese medicine better benefit the broad masses. The relevant enterprises should accurately understand and grasp the rich connotation and practical requirements of the plan on the basis of "inheriting the essence and keeping up with innovation", vigorously promoting the modernization and industrialization of Chinese medicine, and enhancing the vitality of the development of the Chinese medicine industry.
With regard to "improving the ability of traditional Chinese medicine to participate in the prevention and treatment of emerging infectious diseases and emergency response to public health events" mentioned in the plan, Xiao Wei said that the plan will further promote the research and development of new Chinese patent medicines from multiple perspectives for patients with covid-19 pneumonia and convalescent patients, ensure that Chinese patent medicines that can be produced on a large scale can participate and play a role at the first time, and realize the integration of traditional Chinese and Western medicine and the combination of traditional Chinese and Western medicine, Give full play to the role of traditional Chinese medicine in the prevention and treatment of emerging infectious diseases and the emergency disposal of public health events.
help Chinese medicine enterprises "go global"
The plan proposes to accelerate the opening-up and development of traditional Chinese medicine, gradually improve the relevant measures of "going global" of traditional Chinese medicine, carry out policy research on overseas market of traditional Chinese medicine, and help traditional Chinese medicine enterprises "go global". Promote overseas registration and application of traditional Chinese medicine products.
Everbright Securities Company Limited(601788) said that in one area of "one belt, one road" construction and leading enterprises actively expanding overseas business, the number of countries and regions of Chinese medicine spread from 183 in 2015 to 196 in 2020, and the cumulative number of overseas centers for TCM has been built. From 2018 to 2021, the export volume of Chinese herbal medicines and Chinese patent medicines increased steadily, with an annualized compound growth rate of 4.8%, reaching a scale of US $1.27 billion in 2021. Since 2020, traditional Chinese medicine has played a great role in global epidemic prevention and control, and its international recognition has increased significantly. It is expected that China's export of traditional Chinese medicine will maintain a rapid growth.
At present, relevant listed companies are also actively layout internationalization.
Jiangsu Kanion Pharmaceutical Co.Ltd(600557) annual report shows that the company actively promoted the preparatory work for the follow-up clinical trial of Guizhi Fuling Capsule in the United States in 2021.
Shijiazhuang Yiling Pharmaceutical Co.Ltd(002603) 2022 the record of investor relations activities released in January shows that Lianhua Qingwen has been registered and approved to be listed in more than 20 overseas countries as "plant medicine" and "Chinese patent medicine". In addition, the drug was admitted to covid-19 pneumonia designated hospitals in Thailand, Cambodia and Indonesia. In July 2021, Lianhua Qingwen was selected into the home treatment scheme for patients with mild covid-19 pneumonia issued by the Ministry of health of Cambodia, and became a Chinese drug that entered the covid-19 pneumonia treatment scheme of overseas countries for the first time. The company will continue to promote the overseas registration and sales of Lianhua Qingwen in the future, and further expand the overseas market share of products.
optimistic about the growth potential of traditional Chinese Medicine
Since the outbreak of covid-19 in 2020, traditional Chinese medicine has played an important role, and various favorable policies have been released continuously. In February 2021, the State Council issued the notice on several policies and measures on accelerating the development of characteristics of traditional Chinese medicine, affirming the role of traditional Chinese medicine in the prevention and treatment of covid-19 epidemic. The 14th five year plan issued in March of the same year also made it clear that we should vigorously revitalize and develop traditional Chinese medicine. The 2022 government work report proposed to "pay equal attention to traditional Chinese and Western medicine, increase support for the revitalization and development of traditional Chinese medicine, and promote the comprehensive reform of traditional Chinese medicine".
It is worth mentioning that in March 14th this year, the national health and Health Committee officially released the New Coronavirus pneumonia diagnosis and treatment plan (trial version ninth), and explicitly proposed to strengthen the application of non drug therapy in traditional Chinese medicine and increase the content of acupuncture treatment. Subsequently, Shijiazhuang Yiling Pharmaceutical Co.Ltd(002603) , Shandong Buchang Pharmaceuticals Co.Ltd(603858) and other companies announced that their core traditional Chinese medicine products were included in the scheme to prevent and treat covid-19 pneumonia.
Industry insiders said that with the frequent introduction of relevant favorable policies, the attribute of policy haven of traditional Chinese medicine appeared again. After a long-term adjustment, the valuation of the sector is at a low level and there is less institutional allocation. The traditional Chinese medicine sector will usher in the opportunity of valuation repair and fundamental improvement.
Securities companies believe that driven by the "14th five year plan" of traditional Chinese medicine, the industry has changed. It is suggested to focus on innovative traditional Chinese medicine, brand traditional Chinese medicine, traditional Chinese medicine services and traditional Chinese medicine formula particles. The broker specifically mentioned that the pilot work of traditional Chinese medicine formula granules was ended in February 2021, and the new standard was implemented in November of the same year. On the one hand, the impact was the rapid expansion of market scale, on the other hand, the increase of threshold after standardization brought about the increase of costs and barriers. Overall, the previous pilot enterprises have obvious first mover advantages and will fully benefit
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