SINO-EUROPE SYMPOSIUM ON TRADITIONAL CHINESE MEDICINE & HERBAL MEDICINE-MARKET OVERVIEW ®ULATION POLICY

Thoughts on Development and Internationalization of Traditional Drug Enterprises

Yang Chaolin (楊朝林)

(Shandong Hongjitang Pharmaceutical Group Co., Ltd.)

Hi, I will introduce a Chinese patent medicine enterprise with a history of 112 years. I will report to you the characteristics of an enterprise of Chinese patent medicine in 3 parts as follows:

In the first part, I will give an overview of the development of Chinese medicine and phytomedicine.

First, Chinese medicine and phytomedicine has a long history of development. Phytomedicine is a very classic product. Chinese medicine has a longer history of development, more than thousands of years. The formulas are even more difficult to count.

Chinese materia medica is based on the theory of Chinese medicine, which is very important. That is the difference between phytomedicine. There are still some differences between traditional Chinese medicine and phytomedicine in theory, medicinal materials and formula.And there are still some differences between Chinese medicine and phytomedicine in practical application.Traditional Chinese medicine, especially traditional Chinese patentmedicine, has been used in China for thousands of years. It has been confirmed in safety and effectiveness. However, based on these theories, we do not have enough evidence by modern technological method, as our number formula is far greater than our current scientific and technological achievements.

In the second part, I will introduce the trend of internationalization of Chinese medicine.

Chinese pharmaceutical market is continually growing in the global pharmaceutical market. The proportion of Chinese medicine industry in China's overall economy has increased year by year. With the new policy, we will have a high-speed growth in the Chinese medicine industry in the next decade due to the increase in consumption levels, the aging of the population and the policy support of some countries. Based on the analysis above, we believe that there will be 5 opportunities for the development of Chinese medicine in the future:

One is the Internet +: Internet is used to accelerate the development of Chinese medicine industry.

The second is that Chinese medicine develops into health management. There is a clear definition of preventive treatment of disease in Chinese medicine.Chinese medicine has their unique advantages in health management and sub-health. Our traditional Chinese medicine can solve similar problems.

The third is the combination of medical care and health preserving. With the aging society, the demand for the combination of medical care and health preserving continues to increase.

The fourth is to shorten the bottleneck of global goods flow through e-commerce.

The fifth is the whole combination of medical care and health preserving.

The internationalization of traditional Chinese medicine, whether it is a traditional enterprise or a modern enterprise, is making every effort to promote. Some of our traditional enterprises, such as Beijing Tongrentang,Hongjitang, Guangyuyuan in Shanxi province, Tasly,Buchang, etc. are doing some research on modernization and internationalization.

Modern new products have already taken the lead,such as Tasly's compound Danshen Dripping Pills. We adopted, modernized new model of granules, and our granules have characteristics of clear content of specific ingredients. We have first class international extract technology. Established in 1907, we have completed the innovation process of China Ejiao in 1909. In 1975, we have achieved the substitution of Moschus's artificial products, which is a very big breakthrough. In 2016,we won the first prize of China National Science and Technology Progress Award.

This is the framework of enlarged health industry,from which we can see by Chinese patent medicine including Colla Corii Asini, Moschus, we develop into formula granules of Chinese decoction pieces. We have been using the modern Internet + smart pharmacy.

We are moving from natural raw materials to artificial substitution.

This is a key product, each of which has a minimum age of more than 30 years. Although we are traditional enterprises, producing traditional products, we constantly update it and do new research on mechanism and efficacy.

We have established a cooperation platform with various provinces, cities, scientific research institutions,and national research institutions. This is a research and development route that we have done for a hundred years,including formula granules, classic prescriptions, and the development of a hospital preparation for clinical trials,as well as a new treatment for special diseases.

In the century-old enterprise, we have made breakthroughs to treat the present intractable disease of pulmonary fibrosis, by the culture of ancient Chinese medicine. Jinbei oral liquid is the only Chinese patent medicine for treating pulmonary fibrosis. And we have completed clinical trials now. The results of clinical trials can correspond to modern chemical drugs called pirfenidone. But the effect is better than it. For these two chemical products, it did not improve the survival rate for pulmonary fibrosis. We have achieved a significant improvement in the survival rate of patients with pulmonary fibrosis through traditional Chinese medicine.

That is also the overall traceability system established by using the Internet +. We achieve a complete traceability system for raw materials, place of origin, variety, transportation, and the flow of our finished products.

Of course, we have not abandoned inheritance.We still treat modern diseases, by using the inheritance of traditional Chinese medicine culture. And we make modern medicine by modern technology.

Host: Thank you, Mr. Yang. He briefly introduced Hongjitang, a traditional medicine company, from macro perspective and some thoughts on internationalization in the future.