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I remember that when I first switched to the financial industry more than ten years ago, I was the chief pharmaceutical officer of a brokerage research institute. At that time, I had already worked in a foreign-funded medical company for six or seven years, and at the same time, as a graduate of the life science college that was one of the top 1 in China at that time (whether it was the top 1 or not may be a bit controversial now), I was particularly looking forward to finding research targets for biomedical companies in the capital market.
But the reality of the industry at that time was always pessimistic. I think back to why I changed careers back then, because at that time, I was working in one of the world's top 3 pharmaceutical companies (I still haven't checked if I am still in the top 3), and because of my work, I came into contact with some domestic companies, including WuXi AppTec.
At that time, the scale of WuXi AppTec was still very small, and Li Ge was anxious at that time, thinking about whether to sell the company. When we met with their employees and some of their executives, we found that there was a lot of staff change, and the company was panicked, and even felt that the company could announce its closure at any time. Thankfully not!
This was the status quo of the industry at that time. In those years, I also came into contact with some smaller domestic companies, some of them did medical devices, some did IVD, some did drug research and development, and some did OEM, and the revenue scale was really mini, and there were only a few people in research and development, and two or three doctoral students took a few college students to engage in research and development. Some even work as teachers at universities or research institutes while leading a few students to start a business. It's a small workshop scene. But it is such a small workshop, and later several more well-known enterprises have also run.
So at that time, I felt that I was engaged in biomedical research and development in China, and I didn't know when I would see the end. At that time, when I was working in a foreign company, I found that there were obvious bottlenecks, and then there were all foreigners or Hong Kong and Taiwan people. By chance, he transitioned to finance.
I thought it was to study domestic biomedical targets from the perspective of the industry. It turned out that it was too naïve, and at that time I couldn't even find the subject of the research. At that time, the market with the word biology was mainly Hualan Biology and Kehua Biology, which were still making blood products. Even in the field of chemical pharmaceuticals and medical devices, there is no one whose real main business is doing innovative research and development.
At that time, the mainstream was the quintessence of the country - traditional Chinese medicine. Pien Tze Huang was still very niche at that time, and there were both confidential formulas of traditional Chinese medicine such as $Yunnan Baiyao (SZ000538)$, $Tongrentang (SH600085)$ and $Dong'e Ejiao (SZ000423)$, as well as traditional Chinese medicine companies with consumer attributes.
There is also a traditional Chinese medicine injection company that can fit the policy of "medicine for medical care", with a gross profit margin of more than ninety, a marketing expense rate of fifty or sixty, and a net profit margin of twenty or thirty.
If a billion-level drug can be produced in the field of innovative drugs, it will be called a "blockbuster" drug. The revenue ceiling of the real explosive products of traditional Chinese medicine injections may be at the scale of tens of billions.
At that time, Wang Yawei's Zhongheng Group, which had a heavy position, created a stock price myth of 20 times in 2 years. Looking back on it now, it's exciting. With so many innovative drugs on the market in recent years, which one has surpassed the traditional Chinese medicine injections or traditional Chinese medicine consumer products in terms of stock price?
More than ten years have passed in a flash. In the past ten years, I am very pleased to see that the attention of traditional Chinese medicine at the industry level is getting lower and lower, and the valuation is getting lower and lower. The team of innovative drugs and innovative devices is constantly expanding, and there are more and more research targets that meet their interests and aspirations. Especially in the past two years, I found that my classmate's biomedical start-up company can be valued at 10 billion, and I found that the company of the senior brother who had taught me a lesson has also taken advantage of the epidemic to go public. On the other hand, in the traditional Chinese medicine sector, only two traditional Chinese medicine companies have been listed in Shanghai and Shenzhen in the past seven years, and they are still relatively niche traditional Chinese medicine companies.
It seems that the spring of innovative drugs has come, and traditional Chinese medicine is about to be thrown into the pile of old papers. But please lose slowly. At the industrial level, traditional Chinese medicine is indeed making slow progress in technology research and development, but from another point of view, this is the contraction of the supply side of the traditional Chinese medicine industry. On the demand side, has there been a decrease? Definitely. But how quickly is demand contracting? Judging from the market performance, it may also be expected to be much better.
I remember not long after entering the industry, a young researcher at that time graduated from medical school and worked as a doctor for a short time, she was very disdainful of traditional Chinese medicine, thinking that it was completely a placebo, and the new generation of young people would not use traditional Chinese medicine. I think that represents a lot of people's opinions. After working as a seller for a few years, this researcher later went to work as a board secretary of an innovative company, and just looked at the valuation of this company, which is more than ten times, and the stock price has been hovering at a low level for many years. It is not as good as the valuation of some leading Chinese medicine companies. The key problem is that most of the leading Chinese medicine companies more than ten years ago are still in a stable position. It is difficult for innovative drug companies to stand for a long time.
The future of innovative drug companies must be a sea of stars, with unlimited imagination. But how to obtain excess returns in the capital market may be another topic. At least in terms of the certainty of earnings, mature Chinese medicine companies undoubtedly have advantages. Especially in this cold winter of innovative drugs, compared with the situation that many innovative drug companies will die if they do not continue to raise funds, traditional Chinese medicine companies are all innovative drug companies in terms of cash holdings and performance dividends.
I just asked Kimi for help and checked the situation of the secret formula varieties of traditional Chinese medicine. It was found that it was still similar to the situation more than ten years ago. The formulas are still those formulas, and the companies are still those companies. Here's what Kimi found:
The confidential formula varieties of traditional Chinese medicine refer to those proprietary Chinese medicines that are listed as state secret technical items according to relevant national regulations, and their prescription, dosage and other information are protected and not disclosed to the public. The confidential formula of traditional Chinese medicine can be divided into three levels: top secret, confidential and secret according to the level of confidentiality. Top Secret is the highest level of protection and the duration of secrecy is permanent, followed by Secret is long-term, and Secret is protected for a period of time, such as 10 years.
According to the information gathered, the following are some varieties that have been identified as confidential formulas of traditional Chinese medicine:
1. Yunnan Baiyao: It is a national top-secret formula, mainly used for the treatment of bruises, and has various forms such as powders, capsules, plasters, aerosols, etc.
2. Pien Tze Huang: It is also a national top-secret formula for the treatment of acute and chronic viral hepatitis, carbuncle boils, nameless swelling and poison, bruises and various inflammations caused by heat poisoning and blood stasis.
3. Tongrentang Angong Niuhuang Pill: It is a national secret formula, which is used to clear heat and detoxify, suppress convulsions and open the body, and is suitable for stroke coma, encephalitis, meningitis and other diseases.
4. Huatuo Re-construction Pill: It is also a national-level confidential formula, which is used for the treatment of the recovery period and sequelae of phlegm stasis obstruction stroke.
5. Liushen Pill: It is a national secret formula, which is used to clear heat and detoxify, reduce inflammation and relieve pain, and treat symptoms such as sore throat.
6. Musk Baoxin Pill: a state-level secret formula, mainly used for chest paralysis caused by qi stagnation and blood stasis, with aromatic warmth, qi and heart strengthening effects.
7. Turtle Age Collection: A national-level secret formula, which has the effects of strengthening the body and nourishing the brain, strengthening the kidneys and replenishing qi.
8. Dingkun Dan: It is also a national secret formula, and the specific efficacy and use are not clearly mentioned in the collection results
Author: Dr. Lao Niu
Link: https://xueqiu.com/6231472459/286433971
Source: Snowball
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