The prices of traditional Chinese medicine such as Angelica sinensis, Gastrodia elata and other "popular lovers" have fallen sharply.

Due to the blind expansion of the cultivation of Angelica sinensis, Gastrodia elata and other former best-selling varieties, there is a serious surplus of output.

Not only the lofty bird's nest and Cordyceps sinensis have been "left out in the cold" by the market, but also Chinese herbal medicines such as "popular lover" have begun to fall in price. The reporter learned that local best-selling varieties, including Salvia miltiorrhiza, Angelica sinensis, Radix Astragali, and Gastrodia elata, are also in the doldrums, largely due to blind planting overproduction; in addition, the release of the new Pharmacopoeia, the difficulty of GMP certification by pharmaceutical companies, and the strict inspection of the pharmaceutical market have also led to a decline in the trading volume of medicinal materials this summer.

The reporter learned that the lower price did not arouse market enthusiasm, while for listed companies, those who own the planting base were not greatly affected by the price, while those who purchased medicinal materials from outside did not rule out the possibility of benefiting from lower costs or slightly lower drug prices to grab market share.

On this side, the "high-end" bird's nest and Cordyceps are still waiting for a pick-up, and the volume and price have not significantly rebounded; on the other side, the "regular customers" in soup water, including Angelica sinensis, Astragalus, Gastrodia, and other common Chinese herbal medicines, are also in a state of market downturn, and there is no sign of improvement in the short term.

Ordinary Chinese herbal medicines are in the doldrums.

The reporter learned that at present, the overproduction of medicinal materials in the north and south of China can be described as "wide coverage". Including: Radix Salviae Miltiorrhizae, Angelica sinensis, Gastrodia elata, Codonopsis pilosula, Radix Astragali, Atractylodes macrocephala, Lilium, Platycodon grandiflorum, Pinellia ternata, Pinellia ternata, Yuanhu, Honeysuckle, Chrysanthemum, Rose, Ophiopogon, and so on.

Take Salvia miltiorrhiza, a drug commonly used in cardio-cerebral vessels, as an example, it has always had the labels of "large dosage, concern for many merchants, and veritable bulk varieties", but it has gradually fallen into the plight of oversupply in recent years. It is understood that under the background of crazy seed expansion in successive years, the annual output of Shandong, the main production area, has exceeded 10,000 tons, and the total national output has reached 20, 000 tons, but its actual demand has not increased, still around 15000 tons, and its excessive inventory makes its market weaker. It is reported that the highest price of Salvia miltiorrhiza was 12 yuan / kg last year, and it has exceeded 10 yuan in many places this year. Although the price is falling, it is still moving slowly, and the future market of Salvia miltiorrhiza is not optimistic.

At the same time, Angelica sinensis and Gastrodia elata are also facing a dilemma. Due to the ample supply of goods in the market, Angelica sinensis grows well, and the actual demand is light, which leads to the difficulty of selling Angelica sinensis. Even if some of the holders actively give way to the sale, they have not reversed the slow movement of the supply of goods. The current price of goods is about 37038 yuan / kg; also because of the rich supply of goods, but also worth the off-season sales, Tianma does not sell smoothly, and the market continues to be in the doldrums. Now the price of unified goods in the lotus pond market is about 120 yuan / kg.

The price goes down and the sales don't sell.

"at present, most high, medium and low-grade Chinese herbal medicines have entered the state of 'falling both in quantity and price' for different reasons, but consumers seem to be used to it, and there is no phenomenon of panic buying and hoarding, and sales are very stable, even slightly insipid. Local consumption is more real, lower prices do not necessarily lead to sales volume. " A person in charge of a pharmacy in Guangdong told our reporter.

Unlike a few years ago when medicinal herbs were on roller coasters, why did many varieties suddenly fall into the trough of the market? This is closely related to the overproduction caused by blind planting in recent years. It is understood that the prices of many medicinal materials skyrocketed in the past few years, and some varieties have increased greatly and run high for a long time. For example, Prince ginseng started from around 20 yuan, rapidly broke through the 100 yuan mark, and then once reached the price of 200 yuan 300 yuan. The price of Panax notoginseng has also soared through hot money speculation and has risen several times in four years. Under the stimulation of high income, not only drug farmers in producing areas have expanded their planting, but non-producing areas have also changed to this kind of cash crops. The after-effect of blind expansion of planting across the country has finally been highlighted this year, with serious overproduction and a sharp drop in prices. "Blind cultivation has always been a serious problem in the upper reaches of the traditional Chinese medicine industry. More and more varieties fall into a vicious circle and eventually drag down the market. if the local government or relevant administrative departments do not guide them, it will still be difficult for them to return to a reasonable price range in the future." One industry insider said.

The reporter learned from people in the industry that although low-cost medicinal materials are everywhere, due to no signs of warming in the short term, leading to a strong wait-and-see mood of dealers, the market is even more depressed, seeing that there is no money to make, and a lot of hot money has chosen to withdraw at this time.

The influence of rectifying listed companies in the pharmaceutical market may be limited.

In addition to the imbalance between supply and demand, several major policy factors are also affecting the temperature of the drug market. First of all, the State Administration of Food and Drug Administration has focused on strictly inspecting and rectifying major drug markets this year, resulting in a decline in trading volume in the short term; in addition, the new edition of Pharmacopoeia has further improved the quality standards of medicinal materials, which also makes people less interested in those with poor supply in the market. In addition, at present, many pharmaceutical companies have been revoked their GMP certificates, and most of them are involved in the production of traditional Chinese medicine. The closure of pharmaceutical enterprises and industry reshuffle will also reduce the consumption of medicinal materials and make the pharmaceutical market tend to be cold.

"it is difficult to say whether the drug market will recover quickly this year. However, in the long run, the quality of good and bad medicinal materials can indeed be raised to a higher level through various measures, and it is no longer an extensive farmers' market-style trading mode. " The industry insiders said.

It believes that listed companies are not much affected, because because of cost, quality control and other factors, many powerful enterprises have developed upstream planting, and can largely implement "self-sufficiency" for varieties with large consumption; even if pharmaceutical companies purchase outside, due to "learning refinement" and stricter examination and approval of the source medicinal materials, they also choose to go to the place of origin for assessment and procurement, skipping the intermediate link of the drug market. "with the decline in costs, it is indeed possible to increase net profits, but after the NDRC liberalized drug prices, the market competition became more fierce, and we do not rule out the possibility that some proprietary Chinese medicine enterprises will cut prices and grab shares." Analysts in the industry believe that.