Pharmaceutical Network, January 9, "adhere to the equal importance of traditional Chinese and Western medicine, inheritance and development of traditional Chinese medicine," to play the role of Chinese medicine in building a moderately affluent society, the construction of "Healthy China", this is the nineteenth report related to the cause of traditional Chinese medicine for the general direction of the set. As the material basis of Chinese medicine, Chinese medicine tablets will usher in a new era along with the industrial development trend.
When the pointer of time is aligned with 2018, we are full of longing for the new year, while still carrying a fondness for the just-passed 2017. The pharmaceutical industry's 2017 policy of multiple benefits will be released in the next few years from 2018 onwards; the 19th National Congress report depicts a grand blueprint of "Healthy China", which needs to be practiced step by step by all parties hand in hand.
It is expected that in 2018, the Chinese medicine sector, which is closely related to "Healthy China" and the great rejuvenation of the nation, as well as the promotion of Chinese medicine specialty diagnosis and treatment services at home and abroad will become more obvious. As the support of traditional Chinese medicine, Chinese medicine devices and equipment, will also usher in a huge market demand. Chinese medicine products, especially as the fundamental material basis of traditional Chinese medicine Chinese medicine tablets, in 2018 ushered in a new wave of market outbreak has become a probable event in the mouth of analysts.
Drinking tablets warm water, capital prophet
Authoritative views from the pharmaceutical research side show that the market is generally optimistic about the overall direction of the pharmaceutical industry since the second half of 2017 to gradually get out of the trough.
In November 2017, at the 29th National Pharmaceutical Economic Information Conference, Lin Jianning, director of CFDA's Southern Institute of Pharmaceutical Economics, pointed out that, from the data, compared with 2016, the decline of China's pharmaceutical industry has stopped in 2017, is stopping the decline and rebounding, bottoming out. From January to September 2017, the output value of China's pharmaceutical industry reached 2,543.8 billion yuan, an increase of 12.2%, and the growth rate showed a steady climb, and it is expected that the total output value of China's pharmaceutical industry for the whole year of 2017 will reach 3,569.9 billion yuan, an increase of 12.7%; the sales revenue of the pharmaceutical industry exceeded 2,347.5 billion yuan, an increase of 12.3%, and the growth rate showed an obvious rebound, while the China's pharmaceutical industry sales revenue reached 3,329.3 billion yuan in the full year of 2017, up 13% year-on-year.
At that time, Lin Jianning pointed out that 2018 is the opening year after the 19th National Congress, and a series of industrial policies have been intensively introduced, bringing major benefits to the pharmaceutical industry. From a macroeconomic perspective, the global economy is recovering, China's economy is better than expected, from January to September 2017, the national general public budget revenue was 13,412.9 billion yuan, realizing a year-on-year growth of 9.7%; the expenditure on healthcare and family planning was 1,183.4 billion yuan, an increase of 14.6%. The increase in fiscal revenue favors greater investment in medicine and healthcare, which predicts that the sales revenue of China's pharmaceutical industry will increase by 16.5% year-on-year in 2018.
After the introduction of "Opinions on Deepening the Reform of the Review and Approval System to Encourage Innovation in Pharmaceuticals and Medical Devices", the importance attached to pharmaceutical innovation has been elevated to the level of national strategy, and accordingly the priority review of pharmaceuticals in the upper reaches of the industry and the centralized organization of the consistency evaluation of generics have been carried out, accompanied by the expansion of the coverage of healthcare insurance and improvement of the level of financing of healthcare insurance, acceleration of hierarchical diagnosis and treatment and the construction of primary healthcare institutions, and the overall promotion of the innovation of traditional Chinese medicine. Measures such as the development plan, all for China's pharmaceutical market expansion and upgrading to bring great momentum. 2018 pharmaceutical industry ecological multiheads to see, directly ignited the capital of the pharmaceutical sector of high-quality enterprises of the bull market expectations.
In the overall segment of traditional Chinese medicine, traditional Chinese medicine tablets have become eye-catching varieties with rapid growth in recent years. The 29th National Pharmaceutical Economic Information Conference released on the "Chinese medicine tablets industry development research blue paper" on the point that in recent years, China's traditional Chinese medicine tablets industry market scale continues to expand; in 2016 to achieve sales revenue of 195.64 billion yuan, an increase of 12.7%; in the first half of 2017 to achieve sales revenue of 104.79 billion yuan, an increase of 21.33%. 2011- 2016, the five-year compound growth rate reached 18.04%. Although the growth rate of traditional Chinese medicine tablets declined year by year during these five years, there are now obvious signs of rebound in traditional Chinese medicine tablets. With the formal introduction of the "Chinese Medicine Law", as well as Chinese medicine tablets in medical institutions and other terminals are not included in the drug ratio, not counted in the zero-difference price and many other policy benefits, it is expected that during the "13th Five-Year Plan" period, the industry will maintain a high rate of development.
Specifically to some of the leading enterprises of traditional Chinese medicine tablets, it is their rapid development led the rise of the whole plate. As listed in Hong Kong in 2015, CIIC Pharmaceuticals, as a new type of tablet Chinese medicine wall-breaking herbal technology inventor, its Herbal Jingshi Hua wall-breaking herbal series of traditional Chinese medicine tablets have been developed and approved 62 kinds of, listed for sale of 32 kinds. The independent packaging of Cao Jinghua's wall-broken herbal tablets is suitable for the current high-end consumption concept, and the brand advantage is gradually emerging. According to CIIC, the compound growth rate of sales revenue of Herbal JINGHUA wall-breaking herbal series of tablets in 2012-2016 amounted to 71%, and the revenue growth in the first half of 2017 surged by 67.8%, and the annual performance is expected to reach a new level. Due to the small volume of CIIC Pharmaceuticals itself, its growth in the listing especially in 2017 has not been fully demonstrated, but a number of institutions have already expressed their optimism about its potential for value investment in the aftermath of the market.
Of course, there are also large Chinese medicine listed companies optimistic about the industry's recent rapid increase in the heat of the Chinese medicine formula granules drinks, have to the provincial and national food and drug regulatory authorities to consult the declaration, apply to become a national Chinese medicine tablets formula granules pilot enterprises. But the authoritative expert advice from the regulatory authorities is that the domestic Chinese medicine enterprises related to the pilot production and operation of Chinese medicine tablets formulated particles to consider the long-term development of the opportunity to risk and market capacity to bear, and be careful not to make a good product due to vicious price competition leading to the overall quality control of the situation on the higher risk.
"Belt and Road" Chinese medicine with line
At the end of 2017, news from the State Administration of Traditional Chinese Medicine (SATCM) confirmed that the World Health Organization (WHO) will incorporate traditional Chinese medicine as the main body into the newly revised International Classification of Diseases code system (ICD-11), which will be officially promulgated in 2018.
In China's "Belt and Road" initiative, the overall deployment of Chinese medicine development has been initially determined. According to the person in charge of the International Cooperation Department of the State Administration of Traditional Chinese Medicine (SACTM), in an interview with the relevant media recently, the goal of China's international cooperation in TCM is: by 2020, a new pattern of all-round cooperation in TCM "Belt and Road" will basically be formed, the domestic policy support system and the international coordination mechanism will be gradually perfected, and cooperation in building a TCM system will be based on the neighboring and key countries, and cooperation with the countries along the route will be established. On the basis of neighboring countries and key countries, 30 overseas centers of Chinese medicine will be built in cooperation with countries along the route, 20 international standards of Chinese medicine will be promulgated, 100 kinds of Chinese medicine products will be registered, and 50 demonstration bases for foreign exchanges and cooperation of Chinese medicine will be constructed.
How can medicine and health knowledge and services with the advantages of traditional Chinese culture and independent intellectual property rights be brought to the world? The specific form of presentation is debatable. The Blue Book of Research on the Development of the Traditional Chinese Medicine Drinking Tablets Industry also raises related issues, namely, from the perspective of the history of the global application of herbal medicines, the application of herbal medicines is closely linked to the history of the development of human civilization. The four major civilizations that emerged in the history of mankind have many records of the use of herbs to treat diseases. In recent times, the rapid development of modern medicine has gradually marginalized herbal medicine in many parts of the world. At present, only in regions such as East and Southeast Asia, Chinese medicines/herbal medicines are still highly recognized and retained for medical use in the mainstream pharmaceutical field, having the same status as other classes of medicines such as chemicals and biologics, etc. Outside of East and Southeast Asia, although they are also widely used, most of them are not used for medical purposes but in the form of health foods, dietary additives and so on.
In this view, how can TCM enter the minds of ordinary consumers all over the world with better modernized forms of expression and marketing packaging, be accepted by them, and even become a fashionable product for health consumption and related services?
From the development of Chinese medicine products in China's neighboring countries, the development of China's traditional Chinese medicine tablets industry should also adapt to the social development trend, continuously increase the innovation of traditional Chinese medicine tablets, and continue to promote the modernization of Chinese medicine. For example, although the Japanese herbal medicine and the Chinese medicine (including granules) in Taiwan are formally similar to the formula granules currently managed by our country in accordance with the Chinese medicine tablets, they are essentially equivalent to our proprietary Chinese medicine preparations; and they all enter the European and American markets in the capacity of dietary supplements, health care products, or other "non-pharmaceuticals", which is similar to our country's "Ma Ying Long". This is not fundamentally different from the way in which China's "Ma Yinglong" products and "Yunnan Baiyao" enter the European and American markets. It is worth noting that in South Korea and Taiwan, where the concept of concoction is recognized, due to the cumbersome use of traditional Chinese medicine tablets, it is increasingly rare for patients to make their own soup.
Overall, affected by historical factors, in Asia, including East Asia and Southeast Asia, Chinese medicine tablets have a better promotion and application basis; in some European regions, such as Germany and Russia, the application technology of traditional botanical medicines is more developed, with a certain market base, which plays a certain role in promoting the promotion of Chinese medicine tablets; in some countries where the application of traditional natural medicines is not well developed, such as the United Kingdom, the United States, In some countries where the application of traditional natural medicines is not well developed, such as the United Kingdom, the United States, Italy, France, etc., with the vigorous rise of various Chinese and Western medicines combination therapies such as herbal medicine and acupuncture in recent years, Chinese medicine tablets have also been gradually recognized and accepted, and the popularity of the use of Chinese medicine tablets has become more and more widespread.
In the current round of economic globalization and social development accompanied by industrial revolution, the integration of fashion and technology in products is quite important. In this regard, some domestic traditional Chinese medicine enterprises have also made useful attempts. For example, for the innovative development of traditional Chinese medicine, Guangzhou Pharmaceutical Group proposed to create "fashion Chinese medicine", committed to advanced technology, fashion marketing, so that Chinese medicine has become a fashionable health products. With the concept of "fashion Chinese medicine" as the outline, and upgrading product quality and business model as the key, GPHL is now vigorously promoting the modernization, internationalization, popularization and mass layout of Wanglaoji, and delivering the culture of herbal tea represented by Wanglaoji and the craftsmanship culture of the traditional Chinese medicine brand to all over the world.
From the viewpoint of the practice of Guangzhou Pharmaceutical, Wanglaoji, a century-old herbal tea brand, has more than 10 million sales outlets globally, spreading over 60 countries and regions on five continents. Some data show that Wanglaoji accounted for 42.8% of the total export of herbal tea drinks in 2016. Among them, the United States has become the largest overseas market for Wanglaoji, with an annual export value of tens of millions of yuan, and maintains an annual growth rate of about 30%, making it a classic case of Chinese health products going global.
Similarly, Cao Jing Hua wall-breaking herb carries the internationalization dream of CIIC Pharmaceuticals' family member, Lai Zhi Fill. In the future planning, CIIC's goal is to use Cao Jing Hua wall-breaking herbal medicine as the main product, with the connotation of Chinese medicine health care service, to make granular products after wall-breaking, which can be taken directly with water, and the absorption and utilization of the active ingredients is greatly improved, and to push the herbal medicine to the world through the form of experience stores, so as to create the "Starbucks chain" in the field of Chinese medicine tablets. "The experience store is not only for selling Chinese medicine drinks. The experience store is not only to sell wall-breaking herbal products, but also to spread the culture of traditional Chinese medicine through the overall scene and services of the experience store. Let "better absorption, take convenient" fashion Chinese medicine drink broken wall herbal take gradually become "like drinking coffee" convenient, modern, fashion, open a new type of Chinese medicine health culture era.
Of course, whether it is Wanglaoji herbal tea or wall-broken herbal, to the world of Chinese medicine health products in the packaging fashion at the same time, the quality of the hard is also an important foundation. Especially in the globalization of the supply chain to create a precise control system throughout the whole industrial chain of quality and efficiency, including the cultivation of authentic medicinal herbs, standardized production and processing, modern logistics, transportation, storage, packaging, etc., each link needs to be strictly implemented quantitative index control, full-process big data management.
It is reported that in order to ensure the quality of wall-breaking tablets and the safety and effectiveness of the products, CIIC Pharmaceuticals has established a perfect quality assurance system for the whole industry chain of traditional Chinese medicine and the traceability system of traditional Chinese medicine. It has established nearly 20 traceability bases for authentic Chinese herbal medicines in China, and has taken the lead in introducing gene identification technology for Chinese herbal medicines to ensure the authenticity and truthfulness of the species of medicinal herbs; it has set up a remote visualization real-time monitoring platform in the planting bases to effectively monitor the whole process of planting and harvesting of Chinese herbal medicines; and it has introduced international cutting-edge testing equipments to strictly control the standards of pesticide residues and heavy metal contents of Chinese herbal medicines.