The rich tapestry of Traditional Chinese Medicine (TCM) not only serves as a cultural cornerstone in China but also poses unique challenges and opportunities for enterprise innovation in this fieldAs businesses delve into the complexities of TCM, the necessity for creative transformation and innovative growth emerges as a key determinant of successOn December 11, 2023, at a forum focused on the heritage and innovation of TCM, Wu Rui, the Secretary of the Board of Shijiazhuang Yiling Pharmaceutical Co., Ltd(002603.SZ), shared insights on the innovative future of traditional medicine.

Wu emphasized that the foundation of TCM innovation lies within theoretical advancementsThese foundational theories are not just academic; they directly inform the development of new prescriptions and the refinement of production processes in research and development phasesWith the backdrop of a comprehensive understanding of the concept of "meridian disease," Yiling Pharmaceutical has made strides in clinical drug development targeting major illnesses

As of now, the company has received approval for fourteen innovative TCM formulations that address cardiovascular, respiratory, and endocrine disorders, among others, while also exploring treatment avenues for other diseases.

However, the journey isn't devoid of hurdlesWu acknowledged that the TCM industry has experienced fluctuations over the past two to three years, necessitating time for stakeholders across the industrial chain to adaptBoth hospital-prescribed medications and consumer-directed products outside medical facilities pose specific challenges to Yiling PharmaceuticalIn response, the company has recalibrated its marketing strategies for hospital markets and developed a multi-faceted branding approach for external markets, encompassing academic and societal dimensionsIt is crucial to recognize that pharmaceuticals and general consumer products differ fundamentally; thus, regardless of market upheavals, the efficacy of the product remains the cornerstone for thriving in the industry

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Therefore, businesses must focus on solidifying their academic underpinnings and bolstering their scientific evidence to support clinical marketing efforts.

From the perspective of operational excellence, Wu pointed out that fluctuations in raw material costs, particularly in TCM herbs, can significantly impact profit marginsConsequently, firms must bolster management capabilities during these decisions, such as expanding their production facilities and ensuring the consistent quality of raw materials while minimizing procurement costsThe ensuing efficiency improvements, paired with robust academic work, can lead to a higher caliber of product management and delivery in the long run.

Developing innovative TCM formulations can be resource-intensiveWu highlighted the company's substantial investments in evidence-based medicine research—a critical aspect of modern pharmaceutical science

Yiling Pharmaceutical consistently engages in financing projects related to innovative TCM drug researchAs the landscape for TCM evolves, the government is increasingly supportive of innovations through policy frameworksYiling advocates that the genesis of these innovations should stem from clinical practiceMany new prescriptions have been rigorously vetted over extended periods at leading hospitals, aligning with the national new drug review strategy that advocates for a model of “theoretical foundation + human experience + clinical trials.” This ethos respects the empirical and objective principles guiding TCM's practice and research.

One pressing concern in the industry revolves around the establishment of evidence from clinical trials—an issue that many TCM enterprises grapple withWu explained that Western medical specialists dominate around 80% of resources; thus, for TCM products to compete effectively, it is essential that these experts recognize and advocate for the efficacy of TCM therapies to their patients

Unfortunately, many Western practitioners lack familiarity with TCM ingredients and their synergistic effects in formulationsHowever, they acknowledge experimental data supporting efficacySince 1995, Yiling has been conducting evidence-based trials on its flagship products, utilizing well-regarded, rigorous methodologies to validate the efficacy of TCM treatments, while also providing TCM specialists with insights into formulation characteristics and theories that underlie them.

After years of diligent effort, Yiling has executed over forty evidence-based trials and established a "theory, clinical application, new drug, experimentation, and evidence" development modelThis innovative framework creates new pathways to address the challenges faced by many in the TCM industryWu concluded that the approval of a new product is not merely the culmination of efforts but the beginning of ongoing responsibilities, making the challenge of accumulating precise and thorough experimental data even more vital