China Investment Advisor: New medicine reserves system established to control drug prices

Recently, at the press conference of the annual conference of the Chinese medicine industry in 2011, regarding the rising price of Chinese herbal medicines, the relevant departments are working to establish a national and local medicine reserves system, as well as a national emergency plan for medicinal herbs and medicines, in order to stabilize Chinese herbal medicines to some extent. price. In the first half of this year, there were 371 kinds of Chinese herbal medicines for price hikes in the country, and the price increase varieties accounted for 69% of the total.

Guo Fanli, a research fellow in the pharmaceutical industry at China Investment Advisors, pointed out that the establishment of a national and local two-tiered medicinal material reserve system can control the over-rapid rise in Chinese herbal medicine prices and ease the pressure on Chinese patent medicine production enterprises. Last year, 84% of the 537 kinds of Chinese herbal medicines in the national market went up in price. Since March of this year, the prices of Chinese herbal medicines have entered the fourth round of peaks. In the case of unchanged prices of proprietary Chinese medicines, the Chinese patent medicine manufacturing enterprises are very profitable. It is possible to cut corners in the raw materials of Chinese herbal medicines, which will greatly affect the quality of proprietary Chinese medicines.

Guo Fanli pointed out that this is the original intention of establishing a national and local medicine reserves system. However, there are still many difficulties in achieving a two-tiered medicinal material reserve system. Due to the fact that China has a wide geographical area and the level of economic development in each region is also high or low, it is difficult to have a grasp on the prices of Chinese herbal medicines. The method of improvement is An e-commerce platform that provides information collection, analysis, and publication services for the production and sales of medicinal materials for the Chinese medicinal herbs industry is needed to be fair, open, and transparent.

In addition to the above aspects, China still needs to improve the pricing mechanism for Chinese herbal medicines. The government should conduct a rigorous review of the prices of Chinese herbal medicines reported by enterprises. For some companies to accumulate Chinese herbal medicines and thus cause the price of related medicines to rise, the government should intervene promptly. Prevent the disruption of the market; after that, the government needs to make necessary reserves of Chinese herbal medicines, especially those that are easily controlled by hot money. As a result, when the price of Chinese herbal medicines rises due to climate or hot money, the government can promptly put these reserves on the market to stabilize the price of Chinese herbal medicines.

Guo Fanli said that the establishment of a two-tiered reserve system will have an impact on Chinese patent medicine companies. The soaring prices of Chinese herbal medicines have caused the manufacturers of Chinese patent medicines to suffer. As companies cannot increase the price of medicines as raw material prices rise, they are In this case, starting a business is equal to a loss, and many companies have to stop production. The establishment of a two-level reserve system will greatly ease the current situation.

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