Albany, NY -- (SBWIRE) -- 04/15/2013 -- In recent years, China’s Chinese patent medicine industry has been running in good condition, with the revenue increasing from RMB 142 billion in 2008 to RMB 360 billion in 2012 at a CAGR of 26.2%. Over the same period, the total profit maintained a CAGR of 26.6%, and the gross margin remained higher than the average level of the overall pharmaceutical industry.

In succession to the Opinions on Promoting the Development of Traditional Chinese Medicine Services and Trade, the Twelfth Five-Year Plan on the Development of Traditional Chinese Medicine and other favorable policies, the new National Essential Drugs List published in March 2013 increased the number of Chinese patent medicine from 102 in 2009 to 203, and the proportion in total quantity from 33% to 39%. As a result, China’s Chinese patent medicine market demand is expected to grow rapidly in the next five years.

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Chinese patent medicine for the treatment of cardiovascular and cerebrovascular diseases, tumor diseases, respiratory system diseases, musculoskeletal diseases and digestive system diseases are top five categories of Chinese patent medicine for hospitals in China. The Chinese patent medicine for the treatment of cardiovascular and cerebrovascular diseases occupies the largest market share, which remained at around 37% in 2006-2012. Outstanding enterprises producing Chinese patent medicine for the treatment of cardiovascular and cerebrovascular diseases include Shandong Buchang Pharma (products include Guanxin Shutong Capsule and Naoxinshu Oral Solution), Tianjin Tasly Group (products include Compound Danshen Dripping Pills and Yangxue Qingnao Granule), Jinling Pharmaceutical (products include Mailuoning Injection and Mailuoning Oral Solution), Shijiazhuang Yiling Pharmaceutical (products include Tongxinluo Capsule and Shensong Yangxin Capsule), etc.

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As China's Chinese patent medicine is gaining international recognition, coupled with the incentive from high profit (the operating margin is generally above 70%) and the development bottleneck of the chemical pharmaceutical industry, foreign enterprises and institutions such as Novartis, Merck, Johnson & Johnson, GSK have set foot in the Chinese patent medicine market through joint ventures and wholly-owned subsidiaries. For example, in early 2013, GSK announced to carry out drug development trying to use traditional Chinese medicinal ingredients in China.

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