Chinese medicine prices will drop next year

Li Lei, deputy secretary-general of the China Industry Promotion Association and deputy director of the price division of the former Development and Reform Commission, revealed that after the adjustment of western medicine, the price of Chinese medicine will be adjusted in the first half of 2013.

"Now that drug price reduction has always been a major trend, we are not surprised." A person from the Tasly Securities Department of the modern Chinese herbal medicine company told reporters.

High costs lead to difficult price adjustment

“Actually, as early as 2011, the National Development and Reform Commission initiated investigations into the supply of Chinese herbal medicines throughout the country.” A Shanghai-based pharmaceutical industry researcher told reporters that “according to the plan of the National Development and Reform Commission, we must formulate a scientific pricing mechanism for Chinese patent medicines. All 102 proprietary Chinese medicines need price adjustments."

However, price adjustment is not easy, mainly because of costs.

A researcher of a Chinese herbal medicine information network told reporters that Chinese herbal medicines began to rise sharply in the second half of 2009.

Data show that in 2010, China's market, 537 kinds of Chinese herbal medicines more than 80% price increases, the average increase of 109%, nearly 30% rose more than half; rose more than 100% of the varieties as many as 96, 6% of the varieties rose More than 181%, 2% of the varieties rose even more than 300%. Among them, Cordyceps expensive than gold, heterophylla, Panax, honeysuckle, Codonopsis rose to a new high.

Yesterday, a staff member from a pharmacy in Nanjing told reporters that from the beginning of 2009 to the first half of 2011, the prices of Chinese herbal medicines rose by nearly twice the average in less than three years. At present, the prices of heterophylla and Panax pseudoginseng are still not low, such as Panax notoginseng is still more than 600 yuan per kilogram.

The above-mentioned brokerage researcher emphasized that “the price of Chinese patent medicines has been lower than that of chemical medicines, and it is still necessary to wait and see whether Chinese patent medicines eventually lower prices. After all, the cost of Chinese medicines is too high and it is not easy to grasp.”

Regulatory focus is on imported drugs

For the adjustment plan that the NDRC may issue in the future, Chinese medicine production and listed companies are relatively indifferent.

Tasly Securities officials stressed to reporters, "Drug prices are a normal trend."

The reporter noted that since the launch of the new medical reform in 2009, the National Development and Reform Commission has lowered the price of drugs several times, and in 2011 it reduced the maximum retail prices of some anti-microbial, circulatory, and endocrine and nervous system drugs.

In May 2012, the National Development and Reform Commission made a drastic adjustment to the price of digestive drugs, with an average drop of 17%. In September 2012, the National Development and Reform Commission issued a notice to reduce the prices of drugs such as anti-tumor and blood systems, with an average reduction of 17%.

On September 17, the Development and Reform Commission's Center for Drug Price Review announced that it has begun to investigate the production costs and purchase and sales prices of narcotic drugs and a class of psychotropic drugs, and it is expected to be completed in mid-October.

However, the above-mentioned pharmaceutical industry researchers reminded reporters that “the most important price reduction is to lower the maximum retail price, and many companies’ product ex-factory prices are much lower than the previous maximum retail price, and there is more space compared to the retail price after the price reduction, so The actual impact is not great."

The researcher bluntly said, "In fact, the biggest price reduction before the original research drug, that is, imported drugs."

At the medical annual meeting, Li Lei mentioned in the main work of the NDRC on drug prices that the key to lowering drug prices in the F&D season was importing and original research drugs.

Three types of drug companies are difficult to "wound"

Under the shock of price cuts, companies are responding. Analysts pointed out that companies with unique varieties and decisive measures to carry out industrial chain extension and have strong innovation ability will not be affected.

However, Tasly's Securities Department pointed out that "exclusive drugs should not be affected." It is reported that Chinese medicine companies with unique drugs also have Pien Tze Huang, cultivating the whole industry chain of ginseng, nuggets of high-quality ginseng Yisheng Pharmaceutical, and will enjoy natural Niuhuang replaces the vast market of Wuhan Jianmin.

The insider of Hengrui Medicine told the reporter that the ultimate impact of price cuts is not really big, because the company uses new drugs to fill the products with lower profit margins. As a leading company in the oncology industry, although some products are affected by price cuts, the next few years will be the peak period for the listing of innovative drugs.

In addition, in order to reduce the cost of raw materials, Chinese medicine companies are also building Chinese herbal medicine processing plants to ensure the stability of their own raw materials supply.

The above-mentioned brokerage researcher pointed out that “For example, Yiling Pharmaceutical Co., Ltd. established a base for Chinese herbal medicines and a processing plant for Chinese herbal medicines in Shexian, which can fully develop the resources of local wild Chinese herbal medicines. It is expected that the project will achieve an annual output of 1,000 tons of dried forsythia and Suanzaoren. 200 tons, 80 tons of incense plus skin, 35 tons of total glutinous rice and 50 tons of bupleurum not only ensure the stable supply of the company's raw materials, but also prevent the impact of the large fluctuations in the price of Chinese herbal medicines on the gross profit margin of the company."