November 26, 2013 By CPhI. cn

According to the information released from medical economic conference, in 2013, Chinese medicine production growth was slow. Pharmaceutical industry revenue grew slightly. 2013 even showed a phenomenon that sales and profit growth was slower than that of output. Moreover, in drug terminal market, the growth of hospital drugs declined significantly while the medicine retail market remain stable and medicine export experienced downturn.

We believe that due to the unfavorable factors such as price control and management of commercial bribery, 2014 pharmaceutical industry is not expected to be optimistic.

In such a situation, seeking to risk aversion policy and enjoying all positive policy are particularly important. We have firmly expected to those Chinese medicine (TCM) leading enterprises with exclusive medicine varieties. The reasons are as follows. In the aspect of risk aversion, first of all, exclusive varieties have good price maintenance capabilities and are affected by the increasing price of Chinese traditional medicine. Moreover, traditional Chinese medicine with curative effect are less likely to decline its price and its price cut is less than other competitive drugs; Secondly, with regular commercial bribery governance, those which can really foothold in the market are sure to be necessary to the clinical and are curative effect, drugs, which are more likely to exist in leading industry enterprises.

In terms of favorable policies, based on the principle of strong grass-roots health care reform, with the tender based medicine and essential drugs increasingly used in the second and third level hospitals, a large volume of sales of exclusive varieties is just around the corner. In addition, Chinese medicine has original national advantages which other medicines irreplaceable, will be supported by the policy.