Event: on the afternoon of March 29, the general office of the State Council designated and printed and distributed the notice of the 14th five year plan for the development of traditional Chinese medicine in accordance with the 14th five year plan for national economic and social development of the people’s Republic of China and the outline of long-term objectives for 2035.
Comments:
On the afternoon of March 29, the general office of the State Council issued a notice on the “14th five year plan” for the development of traditional Chinese medicine. Compared with the previous one, this release is
The main body of the “plan” is adjusted from the State Administration of traditional Chinese medicine and other departments to the general office of the State Council, with a higher position. The top-level policies continue to pay more attention to and support the traditional Chinese medicine industry.
The “plan” defines four basic principles: first, adhere to people-centered, improve the service capacity of traditional Chinese medicine, give full play to the important role of traditional Chinese medicine in the prevention of diseases, the treatment of major diseases and the rehabilitation of diseases, and ensure people’s health in an all-round and all-round way; Second, adhere to the law of development. Adhere to the original thinking of Chinese medicine, pay attention to the use of modern science and technology and methods, further explore the essence of Chinese medicine, create new characteristics and new advantages in the process of innovation, and promote the development of Chinese medicine characteristics. Third, adhere to deepening reform and innovation. We will continue to promote reform and innovation in the field of traditional Chinese medicine and promote the high-quality development of the cause and industry of traditional Chinese medicine. Fourth, adhere to overall and coordinated promotion. We should pay equal attention to traditional Chinese and Western medicine and improve the ability of integrating traditional Chinese and Western medicine.
The “plan” defines the development goals for 2025, which requires the revitalization and development of traditional Chinese medicine to achieve positive results, and fully develop its unique advantages in the construction of a healthy China, including service system, talent team construction, inheritance and innovation, high-quality development and open development. Specifically, the service level of integrated traditional Chinese and Western medicine has been continuously improved, and the ability of traditional Chinese medicine to participate in the prevention and control of emerging infectious diseases and the emergency response of public health events has been significantly enhanced. Positive progress has been made in basic theory and major disease prevention and control research, the combination of clinical and scientific research has been closer, and multidisciplinary integration and innovation have been continuously promoted. The quality level of traditional Chinese medicine has been continuously improved, and the supply guarantee capacity has been gradually improved. One belt, one road, is the international cooperation in the prevention and control of major infectious diseases.
From the perspective of talent team, the “plan” proposes to improve the construction of evaluation system of TCM medical institutions, further deepen the construction of TCM talent team, and carry out the talent training system of Qihuang project. With the gradual improvement of China’s traditional Chinese medicine system, the nationalization of traditional Chinese medicine continues to move forward, the talent echelon is gradually enriched, and the industry continues to be a good foundation for development.
From the perspective of medical terminals, the “plan” further strengthened the construction of grass-roots TCM departments, encouraged TCM medical institutions to run hospitals in society, and strengthened the scope of TCM treatment. From the expected development indicators released this time, some development indicators have great room for improvement. In the long run, the penetration rate of traditional Chinese medicine medical services will be further improved.
Since 2015, the state has frequently issued favorable policies to support the development of traditional Chinese medicine. On May 12, 2021, Xi Jinping General Secretary inspected the development of traditional Chinese medicine industry, said to develop traditional Chinese medicine, pay attention to the interpretation of the principles of traditional Chinese medicine with modern science, and take the road of integration of traditional Chinese medicine and Western medicine. In addition to the traditional field of basic chronic diseases, the application of traditional Chinese medicine in covid-19 pneumonia prevention and control has significantly improved the treatment positioning of traditional Chinese medicine and expanded the application scope of traditional Chinese medicine. In addition, with the gradual increase of China’s per capita disposable income and the gradual upgrading of medical and health care demand, it has gradually transformed from “treatment” demand to “prevention” demand. The release of the “plan” confirms our previous view that the policy dividend for the development of traditional Chinese medicine industry continues to be realized.
On the whole, the market scale of Chinese medicine in the treatment of major chronic diseases such as cardiovascular, cerebrovascular diseases and diabetes will be further improved. At the same time, with the opportunity of prevention and control of COVID-19 pneumonia, the application of Chinese medicine in the field of prevention and control of major infectious diseases will make greater contributions.
Investment advice
Specifically, at the level of listed companies, we suggest focusing on the treatment of chronic diseases and other basic diseases and the prevention and treatment of covid-19 pneumonia. Basic disease treatment: 1) TCM Enterprises with outstanding innovation ability, including Shijiazhuang Yiling Pharmaceutical Co.Ltd(002603) , Tasly Pharmaceutical Group Co.Ltd(600535) and Jiangsu Kanion Pharmaceutical Co.Ltd(600557) etc; 2) The past is the new, and the brand Chinese medicine enterprises that have a traditional classic that has a traditional classic name, including the brand Chinese medicine enterprises that have a traditional traditional classic, including the Chinese herbal medicine enterprises that include the traditional Chinese medicine enterprises that have a traditional classic name, including the brand Chinese medicine enterprises that have a traditional classic name, including the brand Chinese medicine enterprises that have a traditional traditional classic, including the traditional Chinese medicine enterprises that have a traditional classic name, including the Chinese traditional medicine enterprises that have a traditional traditional classic name, including the brand Chinese medicine enterprises that have a traditional classic name, including the traditional traditional Chinese medicine enterprises that have a traditional classic name, including the brand Chinese medicine enterprises that have a traditional classic name, including the brand Chinese traditional traditional Chinese medicine enterprises that have a traditional classic classic name, including the traditional traditional Chinese medicine enterprises that have a traditional traditional traditional traditional traditional classic name, including the traditional Chinese medicine enterprises that have a traditional traditional traditional traditional traditional Chinese medicine that have a traditional traditional, including the traditional Chinese medicine enterprises that have a traditional traditional traditional traditional traditional traditional traditional traditional traditional traditional traditional, including the traditional Chinese medicine enterprises that have a traditional traditional traditional traditional, Tianjin Chase Sun Pharmaceutical Co.Ltd(300026) and Chongqing Taiji Industry (Group) Co.Ltd(600129) etc. In the field of prevention and control of covid-19 pneumonia and other infectious diseases, it is recommended to pay attention to traditional Chinese medicine enterprises with wide clinical application and outstanding curative effect, and refer to the listed companies whose products have been included in covid-19 diagnosis and treatment plan (Ninth Edition), including Shijiazhuang Yiling Pharmaceutical Co.Ltd(002603) , Shandong Buchang Pharmaceuticals Co.Ltd(603858) etc.
Risk tips
Policy risk; Covid-19 pneumonia epidemic risk; Market promotion is less than expected risk.
