China is likely to loosen restrictions on concentrated herbal granule production pilots, according to a draft released by China Food and Drug Administration (CFDA) in recent days to solicit public opinions.
The draft on regulating production of concentrated herbal granules has been the first of its kind released by the regulator to guide the development of the industry since interim measures released in 2001.
According to the draft, traditional Chinese medicine production enterprises can put into production of concentrated herbal granules after getting approval of provincial food and drug administration departments, adding concentrated herbal granule into its business scope and seeking record keeping in provincial food and drug administration departments.
"On the one hand, loosening restrictions on the supply side is likely to intensify market competition in the short term. On the other hand, the regulator will put more severe standards on production enterprises," said Wang Wen, a researcher with the Bohai Securities.
Insiders noted that though the regulator had lifted restrictions on production pilots, enterprises should still meet strict standards to seek record keeping. Hence, only leading enterprises in the industry could get the final access.
Among companies listed on the Shanghai and Shenzhen bourses, Kangmei Pharmaceutical Co. (600518.SH), Lanzhou Foci Pharmaceutical Co. (002644.SZ) and Nantong Jinghua Pharmaceutical Co. (002349.SZ) are likely to draw benefits.
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