Event: the State Council printed and distributed the “14th five year plan” for the development of traditional Chinese medicine, clarifying the objectives, tasks and key measures for the development of traditional Chinese medicine during the 14th Five Year Plan period.
Taking multiple measures simultaneously, traditional Chinese medicine is expected to usher in a period of rapid development. In 2016, the State Administration of traditional Chinese Medicine issued the 13th five year plan for the development of traditional Chinese medicine. This time, the State Council issued the 14th five year plan for the development of traditional Chinese medicine. The specifications were significantly improved, reflecting the high-level attention to the development of traditional Chinese medicine. The plan puts forward the main tasks of the development of traditional Chinese medicine, including: (1) building a high-quality and efficient service system of traditional Chinese medicine; (2) Improve the health service capacity of traditional Chinese medicine: (3) build a team of high-quality traditional Chinese medicine talents; (4) Build a high-level traditional Chinese Medicine Inheritance and protection and scientific and technological innovation system; (5) Promote the high-quality development of traditional Chinese medicine industry: (6) develop traditional Chinese medicine health service industry; (7) Promote the prosperity and development of traditional Chinese medicine culture; (8) Accelerate the opening and development of traditional Chinese medicine; (9) Deepen the reform in the field of traditional Chinese medicine; (10) Strengthen the support and guarantee for the development of traditional Chinese medicine. In addition, it also puts forward 15 main quantitative development indicators, including the number of traditional Chinese medicine medical institutions and traditional Chinese medicine hospitals. We believe that with the implementation of the plan, the public’s awareness and recognition of traditional Chinese medicine will be improved, the service system of traditional Chinese medicine will be further improved, the construction of Characteristic Talents of traditional Chinese medicine will be accelerated, and the increase in the number of medical institutions and doctors will fully release the demand for diagnosis and treatment of traditional Chinese medicine; The inheritance and innovation ability of traditional Chinese medicine continues to increase, and innovative traditional Chinese medicine is expected to become a new driving force for the development of the industry.
It is suggested to continue to pay attention to high-quality companies in the traditional Chinese medicine industry. The specific ideas are as follows: (1) products are scarce and have independent pricing power, and brand traditional Chinese medicine leaders who are expected to maintain the trend of simultaneous increase in volume and price in the medium and long term, including Beijing Tongrentang Co.Ltd(600085) , Zhangzhou Pientzehuang Pharmaceutical Co.Ltd(600436) ; (2) The company has a sound sales system, leading the R & D of innovative traditional Chinese medicine in all aspects, including theoretical research, new drug discovery and transformation, clinical trials, evidence-based medicine and other evidence accumulation, and companies with differentiated advantages in subdivided fields, including Shijiazhuang Yiling Pharmaceutical Co.Ltd(002603) , Tasly Pharmaceutical Group Co.Ltd(600535) , Guiyang Xintian Pharmaceutical Co.Ltd(002873) , Jiangsu Kanion Pharmaceutical Co.Ltd(600557) and Kpc Pharmaceuticals Inc(600422) ; (3) The pilot of traditional Chinese medicine formula granules has been completed, the use scene has been greatly expanded and the demand has been released, which is expected to replace the market space of some traditional Chinese medicine decoction pieces. We are optimistic about the leading enterprises with strong supply capacity of raw materials, complete construction of quality traceability system, sufficient production capacity (with great advantages in centralized procurement in the future) and wide market coverage, including Chinese traditional Chinese medicine and China Resources Sanjiu Medical & Pharmaceutical Co.Ltd(000999) ; (4) The brand value is obvious. The main sales channels are retail terminals, with low dependence on medical insurance payment and low policy risk. The release of self diagnosis and treatment demand drives the steady growth of OTC Chinese patent medicine enterprises, including China Resources Sanjiu Medical & Pharmaceutical Co.Ltd(000999) , Henan Lingrui Pharmaceutical Co.Ltd(600285) and Jianmin Pharmaceutical Group Co.Ltd(600976) .
Risk tip: the price reduction of centralized purchase of traditional Chinese medicine is higher than expected; The strength and speed of policy implementation were lower than expected.
