Experts Analyze Why Chinese Herbal Pieces Companies Lose

Business Club News, January 12

According to data from the Ministry of Industry and Information Technology, the total annual sales volume of the Chinese medicine decoction pieces industry in China has increased from 16.5 billion yuan in 2005 to 51.2 billion yuan in 2009, which has increased twofold in five years and maintained an annual growth rate of more than 30%. Far above the average level of the pharmaceutical industry. However, behind the rapid development, it hides such a problem: the proportion of loss-making enterprises is as high as 75%, and the high operating costs and low returns have formed a strong contrast. This set of data reflects the growing market demand for decoction pieces on the one hand and exposes the dilemma of the development of the deli piece industry on the other.

Behind the booming demand for traditional Chinese medicine decoction pieces, the main reasons for the inability of TCM decoction pieces industry lies in the following aspects:

The first is the disorderly development of the industry. Compared with other sub-sectors in the pharmaceutical industry, the development of the TCM decoction pieces industry is relatively backward. The production enterprises of “debris, chaos, small and poor” developed by former workshops and workshops have not yet been greatly improved. Some illegal underground and home-plus-workshops are producing unlicensed products, which seriously impacts the production of regular Chinese herbal medicines. The development of the enterprise. As of September 2009, there were 803 pieces of decoction pieces that had passed the GMP certification, but among them, more than 75% of the loss-making enterprises represented a strong contrast between the scale expansion of the decoction industry and business difficulties.

The second is the worrying quality of products. China's drug administration department requires that the production of TCM decoction pieces must be a regular decoction piece production enterprise. Since January 1, 2008, all TCM decoction pieces production enterprises must meet the GMP standards. However, from a practical point of view, the production and processing conditions of Chinese herbal medicines in China are not standardized at present. Although the packaging of Chinese herbal medicines is affixed to certain enterprises, in fact, a large part of the Chinese herbal medicines are regularly added after the production of small workshops. Corporate label.

Some experts believe that the quality of Chinese herbal medicines is not only the appearance of the quality must comply with the "Chinese Pharmacopoeia", but also depends on the level of intrinsic effective substances; the quality of Chinese medicine decoction pieces not only need good medicinal materials, but also depends on whether strict According to "Chinese medicine processing specifications" for processing and production. As the basis of clinical medication, the quality of the decoction pieces directly relates to the clinical efficacy of traditional Chinese medicine preparations and traditional formulas, which affects the development of traditional Chinese medicine.

At the source of the production of decoction pieces, the cultivation base of Chinese herbal medicines, due to improper introduction, many herbs are losing their authenticity. What is more serious is that some pharmacy farmers are arbitrarily using pesticides in the cultivation of medicinal herbs due to lack of pharmaceutical knowledge. The use of chemical fertilizers, excessive use of chemical fertilizers, excessive pesticide residues and heavy metal content in order to increase production will affect the quality of Chinese herbal medicines.

In addition, the phenomenon of artificial adulteration and shoddy products is very serious, causing chaos in the market order of traditional Chinese medicine decoction pieces.

The third is price vicious competition. The vicious price competition is the root cause of the chaotic and poor quality of the Chinese Herbal Pieces market. In the market of Chinese herbal medicines and decoction pieces, some medical institutions purchase TCM decoction pieces in the form of an inquiry, and the supply prices are getting lower and lower, making the TCM decoction pieces enterprises unbearable; while the low-priced and bad-quality decoction pieces of individual traders cater to the needs of medical institutions. , Such low quality and shoddy Chinese Herbal Pieces flow into the market at a low price.

In terms of pricing, the price of Chinese Herbal Pieces is single and lacks flexibility. Traditionally, Chinese herbal medicines have been divided into different specifications according to grades, and different specifications have different prices. Traditional Chinese medicines have only a single price, which is in contrast to the ranking of raw materials for Chinese herbal medicines. In general, high-grade Chinese herbal medicines have relatively good quality and high prices. Therefore, the single price mechanism of the decoction pieces has formed the trend of the Chinese herbal decoction pieces enterprises to purchase the low-grade Chinese medicinal materials, which will inevitably affect the quality assurance of the decoction pieces of Chinese herbs.

The author believes that in order to improve the quality of traditional Chinese medicine decoction pieces, in addition to strengthening the quality control of the production process, we must also control the quality of the source and grasp the quality of Chinese herbal medicines. In order to improve the overall level of TCM decoction pieces industry, the state should increase investment in TCM decoction pieces industry and encourage the enthusiasm of TCM decoction pieces production enterprises for the in-depth development and quality research of TCM decoction pieces and TCM decoction pieces.