Traditional Chinese medicine formula granules are releasing favorable policies, but most enterprises cannot enjoy them.
On March 18, the Fujian Provincial Medical Insurance Bureau announced the list of Chinese medicine formula granules listed on the Internet. Only four companies from Guangdong Yifang, Jiangyin Tianjiang, China Resources Sanjiu and Beijing Kangrentang Pharmaceutical were selected.
This is a big departure from previous industry expectations.
Guangdong Yifang, Jiangyin Tianjiang, China Resources Sanjiu, Hongri Pharmaceutical, Sichuan New Green, and Peili Pharmaceutical are the six pilot units in the pilot production stage of traditional Chinese medicine formula granules. , which has almost dominated this category for nearly 20 years.
However, since the 2015 “Administrative Measures for Chinese Medicine Formula Granules (Draft for Comment)”, production restrictions have actually been lifted. In recent years, China’s traditional Chinese medicine formula granules manufacturers have increased from 6 to more than 60, and more than 30 companies, including Jilin Aodong, Essence Pharmaceuticals, Taiji Group, Jiuzhoutong and other listed companies, have also clearly laid out traditional Chinese medicine formula granules.
It is the first time in the whole country that the Chinese medicine formula granules are put on the net at the provincial level in Fujian. As a result, the selected companies all belong to the previous pilot companies, and new players are not allowed to enter the game.
The market size is nearly 100 billion, and the promotion of medical insurance varies greatly
Traditional Chinese medicine formula granules are included in medical insurance, which is the general policy established by the National Medical Insurance Bureau in 2021, but the promotion varies greatly from place to place.
Fujian is the first province to explicitly include TCM formula granules in medical insurance reimbursement. The Health Knowledge Bureau noticed that in February 2022, the Beijing Municipal Medical Insurance Bureau issued a notice on the online purchase of Chinese herbal decoction pieces and Chinese herbal formula granules, and was ready to start the online purchase of Chinese herbal formula granules and medical insurance payment, but Fujian moved faster. .
According to the requirements of the Fujian Provincial Medical Insurance Bureau, the traditional Chinese medicine formula granules used in the provincial-level medical insurance designated public hospitals must be traded online on the Fujian Provincial Pharmaceutical Equipment Co., Ltd. The lowest price on the net, and price linkage is implemented.
Traditional Chinese medicine formula granules are made from single-flavored Chinese herbal decoction pieces as raw materials, extracted and concentrated according to traditional standards, and processed into uniform specifications, uniform doses, and uniform quality standards for use in traditional Chinese medicine clinical formulas.
From the final list, a total of 2,654 drug product regulations participated in the listing, which basically covered all the varieties of traditional Chinese medicine formula granules sold in Fujian public hospitals.
According to the regulations of Fujian Province, 70% of the sales price of TCM formula granules will be reimbursed, and the limited payment scope will be implemented according to the standard of TCM decoction pieces.
Medical insurance payment for traditional Chinese medicine has always been favored by policy. In November 2021, the National Medical Insurance Bureau replied in reply to the proposal of the members of the National Committee of the Chinese People’s Political Consultative Conference, saying that Chinese medicine formula granules should be properly included in the scope of national medical insurance reimbursement.
At the end of December 2021, the National Medical Insurance Administration and the State Administration of Traditional Chinese Medicine jointly issued the “Guiding Opinions on Medical Insurance Supporting the Inheritance, Innovation and Development of Traditional Chinese Medicine”, which clearly stipulated that qualified Chinese medicine decoction pieces, Proprietary Chinese medicines, Chinese medicine preparations in medical institutions, etc., are included in the list of medical insurance drugs.
Fujian is the beginning of the inclusion of traditional Chinese medicine granules in medical insurance payments.
In the future, other provinces will continue to follow up and gradually introduce more policies for payment of traditional Chinese medicine granules. It is very possible to include them in provincial medical insurance, and it is even expected to eventually be included in the national medical insurance system.
The policy encourages traditional Chinese medicine formula granules, and the favorable policy on the payment side is the best engine for the growth of demand for traditional Chinese medicine formula granules.
A number of institutions predict that the market size of traditional Chinese medicine formula granules will reach 100 billion yuan in 2030.
Favorable policies continue to be released, and listed pharmaceutical companies enter the 100 billion market
Relaxing restrictions and tightening supervision are the two major directions for relevant departments to target traditional Chinese medicine granules.
In February 2021, multiple national departments jointly issued the “Announcement on Ending the Pilot Work of TCM Formula Granules”, loosening restrictions on the production and use of TCM formula granules.
Traditional Chinese medicine formula granules are recognized by the pharmaceutical industry as a “risk-off” variety. Because it has been included in the management of traditional Chinese medicine pieces for a long time, it is always a detached existence. Not only that, it is also not limited by the proportion of medicines, does not implement the two-vote system, and enjoys price bonuses like the pieces.
However, the size of the policy is gradually tightening.
In February 2022, the State Food and Drug Administration issued the “Guiding Opinions on the Principles of Application of Paragraph 2 of Article 117 of the Drug Administration Law of the People’s Republic of China”, clarifying the formulation of traditional Chinese medicine The granules must comply with the provisions of the drug standards, rather than being managed as Chinese herbal pieces.
In this way, traditional Chinese medicine formula granules not only open the door to all enterprises, but also raise the threshold of the industry. Under the barriers formed by higher standards, companies with integrated production advantages, guaranteed quality and quality control, and perfect sales channels are more likely to enter the market. Leading companies such as China Resources Sanjiu and Guangdong Yifang, which have long controlled the production of formula granules, have become the biggest beneficiaries. By.
The listing of Fujian Province has once again confirmed this trend. Guangdong Yifang, Jiangyin Tianjiang, China Resources Sanjiu, and Beijing Kangrentang are all original pilot enterprises.
It must be noted that the centralized procurement of traditional Chinese medicine formula granules is accelerating. In December 2021, Shandong took the lead in the centralized procurement of TCM formula granules and TCM decoction pieces, involving Tianjin, Fujian, Yunnan,Gansu and other 12 provinces and cities.
New entrants will face greater pressure in the face of industry giants with industry advantages.
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