Winning formula for traditional medicine

Even as serious doubts are expressed about the future of traditional Chinese medicine, given its stagnant development on both the domestic and global markets, Guangzhou Pharmaceutical Holdings has increased its inputs into research and the establishment of new sales channels in order to revive the centuries old industry.

The company has integrated its numerous research and development institutes to develop specialized centers for traditional Chinese medicine, bio-medicine and medicinal chemistry.The move allows the company to patent new medicines produced by it, thereby protecting its intellectual property rights. This can sharpen its competitive edge in the domestic market where most Chinese pharmaceutical firms produce similar medicines.

The firm has also invited a group of renowned researchers and scholars to act as scientific consultants.As a result, Guangzhou Pharmaceutical Holdings achieved success in 30 scientific projects last year, and five of its medicines were listed among the best new national medicines.
These achievements are likely to generate an additional 12 billion yuan ($1.54 billion) worth of annual revenue five years after the company's new strategies become fully operational.

On the global market, the company is a major supplier of Chinese herbal tea, a commodity that was officially selected last year to be among the first batch of items representing China's national intangible cultural heritage. This means herbal tea can be protected under the Convention Concerning the Protection of the World Cultural and Natural Heritage and related Chinese laws.

The confirmation is likely to bring about a change from the earlier situation, when traditional Chinese medicine products could be exported only in the food, nutrition or food additive categories.

Regarding it a new business opportunity, Guangzhou Pharmaceutical Holdings organized the high-profile launch of a series of Chinese herbal teas at the 101st China Import and Export Fair, with the expectation that Chinese herbal tea will gain popularity on the lobal market, in turn prompting the development of the traditional Chinese medicine industry.

Dozens of buyers from Southeast Asia placed orders with the company in the first two days of the fair. Buyers from Europe and the United States also expressed interest in the products, taking away samples and information material, as well as discussing export procedures and avenues of future cooperation.

"Canton Fair has always been the best platform for our company to realize its dream," said an executive.