Event description
The general office of the State Council recently issued the “14th five year plan” for the development of traditional Chinese medicine (hereinafter referred to as the “plan”), which defines the guiding ideology, basic principles, development objectives, main tasks and key measures for the development of traditional Chinese medicine during the 14th five year plan period. It is proposed that by 2025, the health service capacity of traditional Chinese medicine will be significantly enhanced, the high-quality development policy and system of traditional Chinese medicine will be further improved, the revitalization and development of traditional Chinese medicine will achieve positive results, and its unique advantages in the construction of a healthy China will be brought into full play. We comment on this.
Event comments
The five-year plan for the pharmaceutical fine molecule Industry issued in the name of the State Office for the first time. In 2019, the State Council Office issued the opinions on promoting the inheritance, innovation and development of traditional Chinese medicine, which can be regarded as the policy starting point and top-level design for the development of traditional Chinese medicine in the new era. The plan defines specific measures, puts forward 10 key tasks, 15 specific development indicators and 11 work columns, reflects the requirements for the high-quality development of traditional Chinese medicine in the new era, strengthens the inheritance and innovation of traditional Chinese medicine, and puts forward safeguard measures.
The plan puts forward corresponding solutions and safeguard measures for the key problems existing in traditional Chinese medicine. We believe that the key problems are mainly manifested in the lack of high-quality traditional Chinese medicine medical service capacity and the lack of high-quality traditional Chinese medicine industry system. For the former, the plan puts forward the practice of promoting the strengths and weaknesses to make up for the weaknesses, strengthening the training of traditional Chinese medicine talents (such as Qihuang project, clinical medicine education, increasing traditional Chinese medicine courses, etc.), and defining quantitative indicators for the coverage rate of traditional Chinese medicine services, the number of beds of traditional Chinese medicine and the number of traditional Chinese medicine doctors in various medical institutions at all levels. Encourage famous and old traditional Chinese medicine doctors to open clinics, and encourage social forces to run traditional Chinese medicine at the grass-roots level; Strengthen research on theory and prevention and treatment of major diseases. For the latter, it is mainly reflected in the uneven quality of traditional Chinese medicine, the small application scope of some clinically effective prescriptions and tested prescriptions, and the lack of in-depth research. The countermeasures proposed in the plan include: standardizing the cultivation of traditional Chinese medicine, establishing and improving the traceability system, establishing a catalogue of genuine traditional Chinese medicine, encouraging the development of innovative traditional Chinese medicine, promoting the research and development of classic famous prescriptions, and supporting the innovative research and development of traditional Chinese patent medicine for children.
The plan will promote the application scenarios of traditional Chinese medicine to expand from China to foreign markets. While improving the medical service capacity of traditional Chinese medicine and the development level of traditional Chinese medicine industry, the plan also describes the application scenario of traditional Chinese medicine. One belt, one road, China, is also used to expand the overseas market (along the way), encourage overseas registration, promote Chinese medicine to participate in COVID-19 prevention and control international cooperation, and build high-quality export bases for Chinese medicine services. For the base construction, we believe that supporting measures will probably be introduced in the future. The export products may be traditional brand traditional Chinese medicine, high-quality characteristic traditional Chinese medicine and valuable innovative traditional Chinese medicine.
Safeguard measures: including optimizing the value mechanism of medical services, preferential support for medical insurance, encouraging commercial insurance, establishing a demonstration area of traditional Chinese medicine, guiding diversified capital investment, etc.
Special note: the general tone of the plan for social capital to participate in traditional Chinese medicine medical services is to encourage the establishment of traditional Chinese medicine hospitals at the county level to provide basic traditional Chinese medicine medical services focusing on health care, and non-profit institutions enjoy the same treatment as public institutions. We will implement the famous doctor’s Hall project and play an exemplary and leading role. It should be noted that the policy does not mention the model of high-end, profitable and large-scale traditional Chinese medicine hospitals.
Investment advice
The implementation of the plan further increases the high-quality development of traditional Chinese medicine from the policy level, and opens up the space for the long-term development of the traditional Chinese medicine industry. We are optimistic about innovative traditional Chinese medicine, the development of children’s proprietary Chinese medicine, the whole industry chain of traditional Chinese medicine, traditional brand traditional Chinese medicine and other main lines. Relevant targets include Shijiazhuang Yiling Pharmaceutical Co.Ltd(002603) , Guiyang Xintian Pharmaceutical Co.Ltd(002873) , Jianmin Pharmaceutical Group Co.Ltd(600976) , Guangyuyuan Chinese Herbal Medicine Co.Ltd(600771) , Beijing Tongrentang Co.Ltd(600085) , gushengtang, etc.
There are risks
Risk of industrial policy change, risk of centralized purchase and price reduction of traditional Chinese medicine, etc.
