Food and Drug Administration intends to ban the listing of non-smokers from advertising

Recently, with regard to the revision of the "Pharmaceutical Advertisements Examination Method" proposed by the Food and Drug Administration, the direction of revision is to prohibit over-the-counter drugs (OTCs) from publishing advertisements in the mass media, and advertisements can only be published on designated professional media, which has caused great repercussions in the industry. People in the industry believe that once this move is implemented, it will bring a huge blow to China's pharmaceutical OTC industry.

OTC or the advertising ban <br> <br> According to media reports, in charge of drug advertising review of the State Food and Drug Administration is preparing to revise "drug advertisement examination approach", revised direction is prohibited non-prescription drug advertising in the mass media, Advertising can only be published on designated professional media. According to a Southern Reporter’s report, an inconvenient expert from the China Non-prescription Medicines Association stated that “we did receive the revised draft, but this is still in the stage of soliciting comments. Is it still possible for the revised draft to be officially issued and implemented? Uncertainty."

When the news came out, it caused a lot of discussion in the domestic pharmaceutical market. An industry senior pharmaceutical investor told the “Daily Economic News” that marketing of OTC companies depends on advertising. Marketing of OTC drugs has always been based on advertising. It then led the terminal to distribute goods. This is the marketing method that OTC's business operations have not changed for many years, and it is also a recognized fact in the pharmaceutical industry. In particular, as an OTC company that is still in its infancy, if it does not advertise its effectiveness, the market will become It is extremely difficult. Therefore, if the Food and Drug Administration really promulgates this ordinance, it will have an impact on OTC companies.

However, this person also pointed out that this ban involves a wide range, involving almost the vast majority of China's pharmaceutical OTC companies, so whether the Food and Drug Administration finally issued the method is still unknown.

Listed companies greatly affected <br> <br> fact, listed companies, OTC pharmaceutical company is also the majority, but including Yunnan Baiyao (000538) and other old and famous enterprises, have invested a lot of advertising to promote their products, Therefore, if the approach is really introduced, it will also have a greater impact on our listed companies.

According to a pharmaceutical analyst from a brokerage firm, Chinese companies such as Guizhou Braun (002424), Guilin Sanjin (002275), Yiling Pharmaceutical (002603 Jiangcai (600750), Renhe Pharmaceutical (000650) and other companies all have OTC share. Larger, but also through a larger advertising expenditure to promote the sale of products, western medicine companies Harbin Pharmaceutical Co., Ltd. (600664), Connbay (600,572), etc. are also involved in advertising the larger companies.OTC advertising ban will block the company OTC products The promotion of the company's performance is evident.

On the other hand, some people think that if the ban is enacted, the promotion of new OTC drug products will be even more difficult, and this will be beneficial to old OTC drugs that have been advertising for years.