Step Pharmaceutical: The Transformation And Upgrading Of Traditional Pharmaceuticals Under The Throes Of Pain

Under the strong influence of the policy, along with the transformation pains, the traditional pharmaceutical enterprises have also arranged the way of transformation and upgrading. But the transformation of antidotes is rare. Can the traditional pharmaceutical industry grow up against the trend after the layout?

In November 19th, during the "2019 major health industry summit", Pu Xiaoping, deputy secretary of pharmaceutical industry and general manager, told reporters on twenty-first Century economic report that under the changing circumstances, pace pharmaceutical, as a leading enterprise in the traditional pharmaceutical industry, will continue to transform from selling to scientific research in the future, transforming the Chinese medicine into the whole industrial chain, and actively lay out the key emerging fields such as biopharmaceutical immunology and genetic engineering.

Labor pains escalation

The past 2019 is not smooth for the traditional pharmaceutical industry.

With the expansion of drug purchase volume, the adjustment and negotiation of medical insurance catalogues, the consistency evaluation of generic drugs, the monitoring of auxiliary drugs, the strictness of drug control and control fees, the reform of medical insurance payment and the control of drug proportion, the heavy medical policies such as the unified medical insurance information system, the overhaul of the drug administration law, the implementation plan of Health China action cancer prevention and control (2019 to 2022) have been introduced, and the industrial structure has been reshaped from different angles, which reflects the firm determination of the government to reduce prices and control fees. On the other hand, it also promotes the transformation and upgrading of the traditional pharmaceutical industry objectively.

Pu Xiaoping told reporters in the twenty-first Century economic report: "natural medicine in traditional Chinese medicine, plant medicine, animal medicine, mineral medicine and so on, with no patent fall cliff risk, thousands of years of human clinical, chronic diseases, long-term disease advantages, multi-target (evolutionary theory, bionics, systems engineering theory as its theoretical basis) and other advantages; and chemical drugs are characterized by a single target, fast response, innovative drug varieties investment high, low success rate, a patent cliff precipice risk; imitation drugs are the original research patent patent expires, the price will drop 80%-90%," raw materials + agent type "is the core competitiveness of generic drugs. In the future, the layout direction of pharmaceutical industry will be transformed from localization enterprises to global enterprises through the advantages of capital market and platform of listed companies. Adhere to the main direction of natural medicine, plant medicine and patent Chinese medicine, and strengthen the whole product line.

Public information shows that in 2018, the company continued to develop natural medicine, botanical medicine and patented Chinese medicine as the main business direction, and the main business revenue accounted for about 99.96% of the total revenue.

Combined with the characteristics of China's aging population, it also has a layout in the fields of chronic diseases, chronic diseases and geriatric diseases. According to the introduction, the pace medicine has already completed the layout in the field of cardiovascular and cerebrovascular diseases, gynecology, diabetes and so on. At the same time, the investment in pediatrics, cancer, depression, prostate and other fields has also been strengthened. Products in the field of chronic diseases include Naoxintong capsule, Wenxin granule, Danhong injection, Gu Hong injection, Compound Porcine Cerebroside and Ganglioside Injection, Troxerutin and Cerebroprptein Injection, ginkgo honey ring oral liquid, Mudan granule, red kernel cleansing liquid, and Qian lie Shu Tong Capsule.

How to go global?

Turning to the future development trend of the traditional Chinese medicine industry, Pu Xiaoping told reporters that the consistent evaluation and purchase of quantity on the policy side will help medical insurance to control fees and ease the pressure of purchasing, but for Chinese medicine, the biggest challenge in the future is how to truly go global. This requires Chinese medicine to achieve breakthroughs in three subdivisions. One is the continuous modernization of Chinese medicine, such as the continuous development of Chinese herbal medicine, capsule and injection, and the convenience of enhancing the application of Chinese medicine. Secondly, through the study of the internationalization trend of Chinese herbal medicine business in Japan and South Korea, through the proposal of monomer, broadening the recognition of the market, and finally the requirement of the top of the modernization of Pyramid, we can achieve the explanation of molecular formula.

According to Pu Xiaoping, focusing on globalization, the future strategy of layout of biopharmaceutical and pharmaceutical business has also become a key breakthrough area. In the pharmaceutical Internet, cancer detection, in vitro diagnostics and other industries also made a layout. Step investment has been invested in Guangzhou seven Lok pharmaceutical chain Co., Ltd., Beijing fast Fang Technology Co., Ltd., Beijing PRD light Germany Biotechnology Development Co., Ltd., Xin Bo Medical Technology Co., Ltd., Suzhou Sheng Tao medical investment partnership (limited partnership), Chaoyang bank Limited by Share Ltd, Hubei step Jiuzhou Tong Medicine Co., Ltd., Shaanxi step Life Technology Co., Ltd., SHEN ZHOU TECHNOLOGY LLC, Jilin step medicine Sales Co., Ltd.

It is reported that the step pharmaceutical development project currently includes Shandong Danhong Pharmaceutical Co., Ltd. Danhong production base expansion project, Shaanxi step Pharmaceutical Co., Ltd. cardiovascular and cerebrovascular drug production base construction and expansion projects, Tonghua valley red Pharmaceutical Co., Ltd. GMP new projects, Compound Porcine Cerebroside and Ganglioside Injection, Troxerutin and Cerebroprptein Injection projects, including Jilin step two phase project construction, investment of about 630 million yuan.

According to the semi annual report in 2019, the company achieved 6 billion 405 million yuan in revenues, including the total revenue of the main Chinese patent medicines, Naoxintong capsule, Wenxin granule, Danhong injection and Gu Hong injection, which amounted to 4 billion 715 million yuan in the first half of the year, accounting for 73.61% of the total revenue.