Lianhua Qing plague into "medicine Mao", the inflection point of the traditional Chinese medicine industry has appeared?

Li Yonghua, a reporter from China Economic Weekly, | Hunan reports

"Lianhua Qing plague has really become a 'medicine grass' and sold too much." On April 6, Yang Lin, an executive of a listed company mainly engaged in proprietary Chinese medicines, sighed. In his view, since the epidemic in 2020, the recognition and acceptance of traditional Chinese medicine have continued to increase, not only Lianhua Qingpi, but also more proprietary Chinese medicines are sought after by the market.

Shanghai citizens received Lianhua Qing plague capsule materials

WHO report recommends traditional Chinese medicine for the treatment of COVID-19,

"It's a bonus"

Lianhua Qingpeng is the leading product of Ling Pharmaceutical. According to the announcement, in the first three quarters of 2021, Yiling Pharmaceutical Lianhua Qingxiao products achieved operating income of 3.37 billion yuan, accounting for 41.6% of the company's total operating income. The product sputum fever clear injection of the pharmaceutical company Shanghai Kaibao (300039.SZ) was listed as a recommended drug for severe and critical illness in the clinical treatment period (confirmed cases) by the "Diagnosis and Treatment Plan for Novel Coronavirus Pneumonia (Trial Ninth Edition)" jointly issued by the National Health Commission and the State Administration of Traditional Chinese Medicine on March 15. The company's 2021 performance forecast said that the company's net profit increased by 30-60%.

In addition to Lianhua Qingpest, in the above diagnosis and treatment plan, there are also Xiyanping injection, hebijing injection, hot poison ning injection, sputum hot clear injection, awakening brain jing injection, Jinhua Qinggan granules, wind and detoxification capsules (granules), lung detoxification soup, lung cleansing detoxification granules and other traditional Chinese medicines, most of the enterprises with these products are sought after in the secondary market.

Since the beginning of March, Shanghai Kaibao, Xiangxue Pharmaceutical (300147.SZ), Fangsheng Pharmaceutical (603998.SH), TusPark Pharmaceutical (000590.SZ), Zixin Pharmaceutical (002118.SZ), Panlong Pharmaceutical (002864.SZ) and other stocks have risen significantly and outperformed the market.

The effectiveness of traditional Chinese medicine in treating COVID-19 has also been recognized by the World Health Organization. On 31 March, the WHO official website released a report fully affirming the safety and effectiveness of traditional Chinese medicine in the treatment of COVID-19 and encouraging WHO member states to consider China's integrated traditional Chinese and Western medicine model.

The report pointed out that chinese medicine can effectively treat new crown pneumonia, and according to the clinical efficacy indicators, it is particularly effective for mild and ordinary cases; Chinese medicine can effectively reduce the risk of mild and ordinary cases turning into severe disease; for mild and ordinary cases, compared with simple conventional treatment, Chinese medicine can shorten the virus clearance time, clinical symptom relief time and hospitalization time when using traditional treatment; while carrying out conventional treatment, the use of traditional Chinese medicine methods to intervene is not only well tolerated. The safety is similar to that of conventional treatment alone, and early use of TCM improves clinical outcomes in patients with mild and common covid-19.

Zhang Di, a deputy to the National People's Congress and a well-known Chinese medicine doctor, believes that the WHO called for Chinese medicine to intervene is rare, which shows the role of Chinese medicine in fighting the epidemic.

At the press conference on the prevention and control of the epidemic in Shanghai held on April 5, Fang Min, president of shuguang Hospital Affiliated to Shanghai University of Traditional Chinese Medicine and head of the epidemic prevention and control base of traditional Chinese medicine, introduced that the use rate of traditional Chinese medicine among positively infected people in Shanghai has remained stable at more than 98%, and Shanghai has distributed more than 21 million copies of traditional Chinese medicine preventive prescriptions to various streets and towns, which has played a positive role in establishing epidemic prevention barriers as soon as possible.

Photo: Lu Jiangtao, reporter of China Economic Weekly

The recognition of Chinese medicine overseas is also rising. On January 19, Yiling Pharmaceutical said that Lianhua Qingpi has obtained marketing licenses in more than 20 countries, and its overall overseas sales revenue has achieved better growth compared with the same period last year.

Zhang Di told the "China Economic Weekly" reporter that there have been plague epidemics in the mainland throughout the dynasties, and thousands of years of history have been verified, and traditional Chinese medicine has very good clinical efficacy and unique characteristics in the treatment of infectious diseases. In particular, the comparison of the large-scale deaths caused by the Black Death in Europe and the Spanish flu shows the efficacy of traditional Chinese medicine in fighting the epidemic.

At the same time, Zhang Di also reminded that Chinese medicine pays attention to dialectical treatment, not a formula universal, nor a formula to use to the end, in addition to the general formula for the universal type, for some individuals with basic diseases or special physiques, we must still pay attention to dialectical medication.

Favorable policies of traditional Chinese medicine are frequently released,

The agency said that the inflection point of the industry has emerged

In the fight against the epidemic, the Chinese medicine industry has received more and more policy support in recent years.

Guohai Securities Research Report believes that since 2019, the Chinese medicine industry has continued to receive national policy support in multiple dimensions such as new drug review, hospital use, and medical insurance support, and the overall top-level design has laid a good foundation for the development of the entire industrial chain of Chinese medicine, and the inflection point of the industry has emerged.

In February 2021, the General Office of the State Council issued the "Several Policies and Measures on Accelerating the Development of Traditional Chinese Medicine Characteristics", which pointed out that it is necessary to accelerate the reform of the review and approval mechanism of traditional Chinese medicines, and establish a "three-in-one" evidence system for the registration and review of traditional Chinese medicines in the theory of traditional Chinese medicine, human experience and clinical trials.

On December 30, 2021, the State Bureau of Traditional Chinese Medical Insurance issued the Guiding Opinions on Medical Insurance Supporting the Inheritance and Innovative Development of Traditional Chinese Medicine, increasing the protection and support for the development of traditional Chinese medicine from the payment side.

In this regard, Yiling Pharmaceutical said in an interview with investors that this means that the state's support policy for traditional Chinese medicine has gradually transitioned from top-level design to landing implementation stage, with strong coherence.

At the end of March this year, the General Office of the State Council issued the "14th Five-Year Plan for the Development of Traditional Chinese Medicine" (hereinafter referred to as the "Planning"), which aims to significantly enhance the health service capacity of traditional Chinese medicine by 2025, further improve the policies and systems for the high-quality development of traditional Chinese medicine, achieve positive results in the revitalization and development of traditional Chinese medicine, and give full play to its unique advantages in the construction of a healthy China. The "Plan" also puts forward specific development goals in the aspects of traditional Chinese medicine service system, characteristic talent team, inheritance and innovation, industry and health service industry, culture, open development, governance level, etc., as well as fifteen major development indicators.

Wang Qi, an academician of the Chinese Academy of Engineering, said in a signed article published by the People's Daily that the previous five-year development plans for traditional Chinese medicine were issued by industry departments, and the "Planning" was issued by the General Office of the State Council for the first time, and the policy was further optimized and the support was further increased, reflecting the great importance attached by the Party Central Committee and the State Council to the development of the cause of traditional Chinese medicine.

Another support policy for real money and silver is the collection of medical insurance. Yang Lin believes that compared with the "soul bargaining" of more than 70% of chemical drugs, the price reduction of proprietary Chinese medicines that have been announced in various places is relatively mild, and the exclusive varieties of traditional Chinese medicines and new chinese medicine drugs can obviously feel the care of the policy.

From 2017 to 2021, a total of 20 new Chinese medicine drugs were approved for listing nationwide; of which 13 were approved in 2021, the development of new Chinese medicine drugs was significantly accelerated, and the guidance direction of the policy level to encourage the innovative development of Chinese medicines was extremely clear.

Huaan Securities Research Report said that the competition pattern and malleability of the field where the new Chinese medicine drugs are located are good, and a number of new Chinese medicine drugs have broken the situation of no Chinese medicine in the treatment field, and there is a good expansion and replacement space for exclusive Chinese medicine.

Yiling Pharmaceutical, Tasly, Fangsheng Pharmaceutical and other enterprises have obtained the high number of approved innovative drugs, and the secondary market is also quite sought after.

Li Zhihong, vice president of Central South University and president of the Second Xiangya Hospital of Central South University, believes that the high-quality development of traditional Chinese medicine has a long way to go, and it is necessary to increase policy support for grass-roots traditional Chinese medicine hospitals and talents, increase financial investment in traditional Chinese medicine, and improve the grass-roots traditional Chinese medicine service system.

Zhang Di also said: "After the epidemic in 2020, the state attaches great importance to traditional Chinese medicine, various policies are good for the traditional Chinese medicine industry, and the society's emphasis on traditional Chinese medicine is also different, and in the future, to develop traditional Chinese medicine, we must have the confidence of Chinese medicine, believe in Chinese medicine, use Chinese medicine, and love Chinese medicine." ”

Editor-in-charge: Yang Lin

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