Medicines Policy increases industry concentration

“The current low single-digit growth in the pharmaceutical industry has become the new norm, part of the large-cap companies underestimate the value has been more adequately reflect market expectations, but the industry segments differentiation obvious trend for the better part of the field is still able to maintain a more fast growth, high valuation enjoy. “CICC healthcare industry researcher Zou Peng believe that it is entangled in the growth rate for the industry as a whole, low investment guidelines do not mean much, look for trends to the good segments, and focus on investment still able to obtain better excess returns.

“Under the current industrial policy, improve industry concentration is an inevitable trend, but medical prescriptions structure is also changing rapidly, giving way adjuvant therapeutic use.” Zou Peng said that the current institutional medicine positions at historic lows, still optimistic investment opportunities in the pharmaceutical sector, it is proposed to focus on prescription drugs and the leading business leader.

As a buyer of institutional investors, GF Fund equally optimistic about the pharmaceutical industry’s future development. “Under the policy support and an aging population in the larger environment, the pharmaceutical industry has great growth potential.” GF Securities medical Index Fund (502,056) fund manager Luo Guoqing pointed out that the total expenditure of the health share of GDP is slightly higher 5%, still nearly double the gap with developed countries, the future has a large room for improvement.

“This year the government will actively promote the deepening medical reform policy floor, benefiting from the relevant medical reform policies and industry of high economic, high-end medical services, prescription drugs, precision medical and other fields in line with health reform policy-oriented future with great growth potential.” Luo Guoqing expressed.

“Western medicine” sold back to Chinese market

German pharmaceutical companies with only a few dollars per kilogram price of the acquisition of a large number of Chinese rough leaves, deep processing made of cholesterol-lowering drugs, the price turned a somersault dozens; Cuban medicine “Liushen” developed by the Japanese transformation ” Jiuxin Dan “, the price was so expensive people speechless. China, however, more Chinese enterprises angry that the extraordinarily high prices of “Western medicine” actually very popular in the Chinese market, according to incomplete statistics, “Western medicine” Chinese medicine accounted for one-third of market share, and increased year by year trend. The same herbs, simply because after the “foreigners” in the hands, covered with a “dress” can be sold back to the domestic competition for the market, but also the traditional Chinese medicine products to fight off their feet, mouth foul smells really hard to swallow.

And “four great inventions”, as Chinese medicine and Chinese medicine has always been regarded as a treasure of traditional Chinese culture, the magical effect of foreigners to its curious and difficult to crack, the degree to become Chinese pride, the arrogance of others capital. Things did not expect the move, even this position was also lost a huge loss even resentful people imagined. But these things come back to inquire into the circumstances surrounding, suddenly I found that the root cause is actually still in his body. Fourth Clinical Medical College of Beijing University of Chinese Medicine Dean Wang Chengxiang noted that compared to foreign drugs through the deep processing of value-added products improve, the domestic production of traditional Chinese medicine, mostly in the early stages of the rough, this is one; “Western medicine” packaging very stress, unlike the domestic Chinese pharmacy, often wrapped in brown paper with a thin trouble, at least give you a plastic bag, which is the second; another important reason is that foreign pharmaceutical companies generally emphasize quality standards, and this is precisely the domestic medicine biggest weakness industry, our so-called quality standards is often not the old Chinese paintings left side characters like quote it?

However, a glimpse of traditional Chinese medicine Sinopharm defeat in the “Western medicine” is more fundamental reason, that is the product of a fatal cut corners. Chinese medicine cultivation, harvesting, processing, each level are very particular about the quality and quantity of consumers who want to take medicine is both a pollution-free, but also a genuine medicine, Chinese enterprises can be a lot of domestic products simply can not pass these, this obviously with the hope that their overall market, and even the survival and development of the industry, away to others is no different.

The situation has been very clear that foreign pharmaceutical companies to adopt new methods of traditional Chinese medicine deep processing, fine packaging, the introduction of Chinese medicine “upgrade” to the quality win, to the credibility of the market, can not be simply interpreted as “Chinese people drilled loopholes “; the high-quality medicines and precious ancient prescriptions sold to foreigners, and without violently denounced as” traitors “, the key is that we should have a rational analysis and objective reflection and in-depth review: when foreign pharmaceutical research funding accounting for 15% -20% of annual sales, why our large pharmaceutical companies only 5% or less? When pharmaceutical companies throughout Japan and Germany using computer control to ensure stable and consistent quality of Chinese medicine, why most of our pharmaceutical companies still use semi-automatic as well as manual production technology, resulting in drugs controllable always too low?