There are already 34 pilot enterprises for traditional Chinese medicine formula granules.
Release time:
2017-09-08
There are already 34 pilot enterprises for traditional Chinese medicine formula granules.
On the 6th, the "List of Pilot Enterprises for the Research and Development, Production, and Clinical Use of Traditional Chinese Medicine Formula Granules in Hubei Province for 2017" released by Hubei Province shows that six pharmaceutical companies, including Mayinglong Pharmaceutical Group, have obtained pilot qualifications for traditional Chinese medicine formula granules.
For a time, the industry widely speculated about when the "Management Measures for Traditional Chinese Medicine Formula Granules (Draft for Comments)" (hereinafter referred to as the "Draft for Comments"), which had ended its public consultation over a year and a half ago (March 1, 2016), would be implemented and when the formula granules would be opened nationwide.
In fact, Hubei has become the seventh province to release pilot formula granules after Zhejiang, Jiangxi, Heilongjiang, Henan, Anhui, and Guangdong since the release of the "Draft for Comments".浙江、江西、黑龙江、河南、安徽、广东等6省之后的第7个Along with the previously approved national and provincial pilots, a total of 34 pharmaceutical companies have obtained pilot qualifications for traditional Chinese medicine formula granules, involving 12 provinces and cities and 15 listed companies., and many more are in the application process, making this emerging industry attract significant attention from both the industry and capital.，更有多家在申请的路上，小小新兴产业赚足了产业和资本的眼球。
The author previously published two articles authorized by Cyberspace Blue:"The Competition of Traditional Chinese Medicine Formula Granules: Understanding the Industry Landscape in One Article"》、《"Understanding the 10 Billion Traditional Chinese Medicine Formula Granules: A Must-Read!"" These articles systematically discussed the ins and outs of the traditional Chinese medicine formula granules industry for the first time, unveiling the mystery of the industry.
Here are some changes in the formula granules industry since the release of the "Draft for Comments":
1. Status of Pilot Enterprises
If we consider China Resources Sanjiu and its subsidiary Anhui China Resources Jinchang Pharmaceutical as one, the total number of approved pilot enterprises is 34. Heilongjiang has issued documents for nearly a year, but we have yet to see its approved pilot enterprises, which are not included here.
2. Production Requirements
3. Quality Standards
Recently, Tianjin and Gansu have successively released quality standards for formula granules in their provinces.
1. China Traditional Chinese Medicine
Its formula granules have seen strong sales growth in grassroots medical institutions, with a growth rate of 67% in the first half of this year, double last year's full-year growth of 33%; sales in secondary hospitals maintained over 30% growth, while the growth rate in tertiary hospitals has slowed down. The proportion of distributors has decreased from 25% last year to 20%, further optimizing the channel structure. The sales growth of dispensing machines has been significant.
Currently, Tianjiang and Guangdong Yifang have installed 3,072 smart dispensing machines in 1,740 hospitals, averaging 1.8 machines per hospital. The coverage rate of dispensing machines in developed tertiary hospitals is 93.6%, averaging 2.3 machines per hospital, while the coverage rate in secondary hospitals is 69.4%, averaging 1.6 machines per hospital.
The engineering projects of Shandong Yifang and Zhejiang Yifang are progressing smoothly, with Shandong Yifang expected to complete construction by the end of 2017 and enter the equipment debugging and trial production phase in early 2018, while Zhejiang Yifang is also expected to complete construction and enter trial production in the first half of 2018.
2. Hongri Pharmaceutical
In the first half of 2017, Hongri Pharmaceutical's sales revenue from formula granules rarely decreased by 6.47% compared to the same period last year.
Its subsidiary, Hebei Hongri Yaodu Pharmaceutical Co., Ltd., invested 30 million yuan to jointly build a traditional Chinese medicine formula granule production base in Anguo, Hebei, with Anguo Yaodu Group, while also producing some traditional Chinese medicine products, aiming to leverage the production process and quality standards of Hongri Pharmaceutical's wholly-owned subsidiary, Beijing Kangrentang Pharmaceutical Co., Ltd., to seize the opportunity of the upcoming policy relaxation for traditional Chinese medicine formula granules and rapidly promote the development of the traditional Chinese medicine formula granules industry in Hebei Province, quickly capturing a larger market share.
3. China Resources Sanjiu
In 2017, China Resources Sanjiu's "New Model Application of Intelligent Manufacturing for Traditional Chinese Medicine Formula Granules" project was approved as a project under the "Ministry of Industry and Information Technology's Comprehensive Standardization and New Model Application for Intelligent Manufacturing," making it the only project in the formula granules industry to receive such approval, providing a good opportunity for the company to further achieve intelligent manufacturing.
Issues
1. "Supplement" has become "Replacement"
Relevant parties have positioned traditional Chinese medicine formula granules as a supplement to traditional Chinese medicine decoction pieces in clinical applications, but the current situation is almost entirely aimed at replacement, with a replacement rate of 6% in 2016. In fact, in some cities, the replacement rate has reached 40-50%, as the decoction pieces sold to hospitals only account for 40% of the total, and the proportion sold to secondary and above hospitals is even less than 40%. As the denominator shrinks, the proportion value has significantly increased.
2,Local Protectionism Emerges
As various provinces successively relax the pilot programs for traditional Chinese medicine formula granules in their provinces, and some policies tilt towards local enterprises, the market competition landscape has changed.
3. The approved pilots in each province are limited to sales within the province, and Henan and Hubei have also specified that sales are limited to secondary and above hospitals, so how many pilot enterprises each province can accommodate in terms of production capacity is worth noting; otherwise, overcapacity will inevitably lead to a price war, ultimately harming the healthy development of the industry.
4. Do Not Forget the Original Intention
Do not neglect the continued research on the similarity of efficacy between "single decoction and combined decoction."
Trends
1. Although the "Draft for Comments" has yet to be implemented, traditional Chinese medicine formula granules have been included in the "Strategic Planning Outline for the Development of Traditional Chinese Medicine (2016-2030)." National Medical Masters and Academicians, including Cheng Xueran, General Manager of Tianjiang Pharmaceutical and Guangdong Yifang Pharmaceutical, and Wang Guoqiang, Deputy Director of the National Health and Family Planning Commission and Director of the State Administration of Traditional Chinese Medicine, discussed formula granules on CCTV's "Dialogue" shortly after the official implementation of the "Traditional Chinese Medicine Law," indicating that the vigorous development of the traditional Chinese medicine formula granules industry is undoubtedly on the agenda.
2. The remaining provinces will gradually relax the pilot programs for local pharmaceutical companies.
3. Medical reform policies will promote the development of formula granules.
Excluding the drug proportion and reimbursement policies have directly facilitated the rapid development of the traditional Chinese medicine decoction pieces industry.
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