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Qizheng Tibetan Medicine: Deeply Exploring the Full-Chain Value of Ethnic Medicines
Release time:
2011-07-29 14:29
With a history spanning over 2,300 years, the ancient Tibetan medicine is now entering a phase of rapid development, aiming for industrial modernization, scale-up, intensification, and internationalization. As Tibet’s largest Tibetan medicine enterprise, Qizheng Tibetan Medicine is accelerating the building of resource-based competitive advantages and, leveraging capital market platforms, is deeply exploring the full industrial-chain value of the ethnic medicine sector.
Qizheng Tibetan Medicine has long been focused on the pain-relief drug market. Its main products include Qizheng Pain-Relieving Plasters, Qingpeng Ointment, and other topical and oral Tibetan medicines as well as Tibetan medicinal materials. Among these, the Qizheng Pain-Relieving Plaster series—led by the flagship product Qizheng Pain-Relieving Plaster—has ranked first in sales for many consecutive years in China’s topical pain-relief drug market. In 2010, among Qizheng Tibetan Medicine’s total revenue of 523 million yuan, plasters and ointments together accounted for as much as 85.7% of total revenue.
With strong support from the Tibet Autonomous Region for the integration of the Tibetan medicine industry, at the end of last year, Qizheng Tibetan Medicine, together with other Tibetan medicine enterprises in the region, jointly initiated and established the Tibet Yutuo Tibetan Medicine Industry Group, in collaboration with the regional investment company and state-owned enterprises. Qizheng Tibetan Medicine holds an 80% stake in the new group. The company stated that the new group will leverage the unique pharmaceutical resources of the Qinghai-Tibet Plateau to further explore the overall market value of the industry chain vertically and to tap into the market potential of Tibetan medicines and Tibetan medicinal materials in the fields of treatment and health care horizontally, thereby expanding Qizheng Tibetan Medicine’s market presence in the pharmaceutical and healthcare sector.
Last June, Qizheng Tibetan Medicine invested 180 million yuan to build a world-class, pollution-free Chinese medicinal herb slice and deep-processing production base in Gansu Province. Upon completion, the base is expected to generate annual revenues of 460 million yuan. In March of this year, Longxi Qizheng, a wholly-owned subsidiary of Qizheng Tibetan Medicine, invested 27.5 million yuan to acquire a 55% controlling stake, jointly establishing Ningxia Qizheng Shahu Goji Berry Industry Co., Ltd. with two other shareholders, thereby positioning itself as China’s leading supplier of high-quality, authentic goji berry brands sourced directly from their place of origin.
In addition to its existing patch and ointment products, the integrated development of a full industrial chain for Tibetan medicinal materials—encompassing planting, R&D, production, and marketing—is poised to become one of Qizheng Tibetan Medicine’s key future sources of profit.
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