China Healthcare:No fear to more TCM granule players

On 26Sept 2017, Baiyunshan Pharm (874.HK, NR) announced that it had receivedapproval from Guangdong Food and Drug Administration(广东省食品药品监督管理局) to trial research on Chinese medicine concentratedformula granule (CCFG). The authority has agreed to have Baiyunshan’s JVcompany, namely Hutchison Whampoa Guangzhou Baiyunshan Chinese MedicineCompany Ltd, for this research.

    Ahead of this approval, Guangdong Province has already granted another two localdrug-makers for trial research on CCFG. However, as cited by Yaozh.com, onlyYifang Pharm (under China TCM (570.HK, BUY, TP:HKD5.95)) and anotherdominant local drug-maker (Player 1in Figure 1), are currently able to sell CCFG inGuangdong with CCFG sales at RMB1.6bn and RMB1.5bn in 2016respectively.

    Same for the other two new comers, Baiyunshan will have to attain the Guangdongprovincial standard for CCFG, on its research to 203types of CCFG products. All ofthem will be restricted to prescription usage within the medical clinics andhospitals based in Guangdong Province.