Chinese medicine prices soared once again

The business club reported on June 8th that the price increase of Chinese medicine is a market factor. Most of the Chinese herbal medicines are planted through agricultural and sideline products bases, and farmers who are too cheap do not choose to plant them. On the other hand, perennial medicinal herbs may also cause price increases if they encounter natural causes. At the same time, there are also factors in the accumulation of hot money for speculation... The establishment of a reserve mechanism for Chinese herbal medicines.

-- Wang Guoqiang, Director of the State Administration of Traditional Chinese Medicine

Rising demand for rigid demand, drought and hot money pushed up the price of Chinese herbal medicines. The Ministry of Commerce announced yesterday that after the prices of Chinese medicine in the past two weeks have been stable in April, the upward momentum has once again been strong.

The Ministry of Commerce released information yesterday that the price index of the Chinese herbal medicines in Chengdu continued to rise by 1.34% last week after a weekly gain of 4.44% at the end of May. Chinese herbal medicines rose sharply in March, and the trend was stable in April. In late May, there was a sharp increase again.

The monitoring data released recently by the Chinese Medicinal Materials Information Center of the Chinese Medicine Association also shows that in the past May, of the 537 medicinal herbs, the year-on-year increase was about 69% of the total. Among them, 21%-50% increase in the number of varieties of medicinal herbs, accounting for 40%, an increase of 181% -300% and more than 16 of them.

Yesterday, after a patient took medicine at a Chinese medicine clinic in Weigong Village, Haidian District, he found that the price of the same 14 Chinese medicines had risen sharply in the past two months. Among them, the price of dandelion has more than doubled and the prices of Chuanxiong and wild chrysanthemum have nearly doubled. The pharmacy explained that "it has been rising recently and it has risen the most last week."

According to the research report of Guodu Securities, the planting area of ​​Chinese herbal medicines has drastically decreased, and natural disasters have been frequent in most areas. In particular, droughts in the south, labor costs for planting and harvesting of Chinese herbal medicines, and transportation costs have been increasing year by year. The growth in demand and some speculation in hot money are also increasing. Boosted prices.

According to media reports, the person in charge of the Traditional Chinese Medicine Information Center of the Chinese Medicine Association said that since March, prices of Chinese herbal medicines have entered the fourth round of peaks and are in the period of the fastest price increase in 10 years.

Rising Chinese herbal medicine prices or long-term cost pressures for Chinese herbal medicine companies

In recent days, Shijiazhuang Yiling Pharmaceutical Co., Ltd. rushed through the Shenzhen Stock Exchange to accept the review by the Securities and Futures Commission. Wu Yiling, its chairman and actual controller, is an academician of the Chinese Academy of Engineering and a famous cardiologist and cerebrovascular disease expert.

According to the disclosure of the IPO prospectus, Wu Yiling holds 100% equity in the company's controlling shareholder, Yi Ling Pharmaceutical Group. His son Wu Xiangjun and his daughter Wu Rui respectively held 26.42% and 2.97% of the equity of YiLing Pharmaceutical. They both served as directors, executive deputy general managers, deputy general managers and director secretaries of the company.

There are 13 natural company shareholders in the company with Wu Yiling. Except for two children, the proportion of other relatives' shares was less than 2%.

Born in 1949, Wu Yiling was born into a Chinese medicine family and developed Tongxinluo prescription. In 2009, he was elected academician of the Chinese Academy of Engineering. As one of the few academician owners of Chinese medicine companies, Wu Yiling was appraised that “doing academics has been done by academicians and enterprises have been listed”.

An Bian consulting pharmaceutical industry analyst Bian Chenguang said that the continued rise in Chinese herbal medicine prices will bring long-term cost pressures to Chinese herbal medicine companies. The NDRC’s recent increase in electricity prices also has an impact on large energy companies such as pharmaceutical companies.

Star drug sales decline

Taking the well-known products of Lianhua Pharmaceuticals Lianhua Qingjing Capsule as a killer for “Aliuliu” virus, the market share in the anti-cold proprietary Chinese medicine retail market reached 1.59% in the first half of 2010, ranking fifth in China.

However, the cardiovascular and cerebrovascular drugs and anti-cold drug markets in which the company is located face the risk of multinational pharmaceutical companies joining the competition and crowding out the domestic market. In addition, the raw materials of the products are mainly Chinese herbal medicines, and at present, the Chinese herbal medicines generally show a rising trend, and the cost changes will also affect the profitability of the company.

After the epidemic weakened, the sales volume of Lianhua Qingqi Capsules declined. According to 2010 data, the sales revenue of this product is only 15% of the peak period in 2009.

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