--- title: "The pharmaceutical commercial sector has exploded! Hezong Medicine Easy-To-Buy Pharmaceutical has reached a 20% limit-up, with an 8-year major adjustment to the essential medicine catalog combined with the implementation of the Traditional Chinese Medicine revitalization plan" type: "News" locale: "en" url: "https://longbridge.com/en/news/292559352.md" description: "Benefiting from the implementation of the Traditional Chinese Medicine revitalization plan and the release of the 2026 version of the essential drug list, the A-share pharmaceutical commercial sector has exploded. Hezong Medicine Easy-To-Buy Pharmaceutical reached a 20% limit-up, and ST NEPTUNUS and two other stocks also hit the limit-up. CITIC Securities' research report pointed out that the expansion of the new essential drug list and the increase in the proportion of innovative drugs release positive signals, which are expected to drive market demand growth and improve the efficiency of innovative drug medical insurance access" datetime: "2026-07-14T03:11:53.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/292559352.md) - [en](https://longbridge.com/en/news/292559352.md) - [zh-HK](https://longbridge.com/zh-HK/news/292559352.md) generator: "portal-rs" --- # The pharmaceutical commercial sector has exploded! Hezong Medicine Easy-To-Buy Pharmaceutical has reached a 20% limit-up, with an 8-year major adjustment to the essential medicine catalog combined with the implementation of the Traditional Chinese Medicine revitalization plan In the morning session, the A-share pharmaceutical (core stock) commercial sector surged, with the leading stock Hezong Medicine Easy-To-Buy Pharmaceutical rising by 20.01%. Three stocks in the sector hit the daily limit: NEPTUNUS, Hezong Medicine Easy-To-Buy Pharmaceutical, and Renmin Tongtai. Huaren Health, Dacelin, Luyan Pharmaceutical, and Dajia Weikang rose over 5%, while Laobaixing, Yixintang, Yifeng Pharmacy, Nanjing Pharmaceutical, and Jianzhijia rose over 4%. On the news front, the State Council has in principle approved the "15th Five-Year Plan" for the revitalization and development of Traditional Chinese Medicine (core stocks), emphasizing the importance of both traditional and Western medicine, adhering to innovation while maintaining integrity, improving the inheritance and innovation development mechanism of Traditional Chinese Medicine, accelerating the modernization of Traditional Chinese Medicine, and promoting its global reach, which will bring long-term development opportunities to the entire pharmaceutical industry chain. In addition, the 2026 version of the National Essential Medicines List was officially released on July 9, marking an adjustment after 8 years that further optimizes the drug structure and enhances the accessibility of clinical medications, which will drive the market demand growth for related pharmaceutical (core stock) products. CITIC Construction Investment Securities stated in a research report on July 14 that the release of the 2026 version of the essential medicines list presents three major characteristics: First, after about 8 years, the adjustment has been restarted, increasing the total varieties from 685 in the 2018 version to 794 (a net increase of 109 varieties, a growth of 15.9%), with 476 chemical drugs and biological products, and 318 traditional Chinese medicines, with the proportion of traditional Chinese medicines rising to about 40%. Secondly, 16 new innovative drugs have been added (including 4 domestically produced Class I new drugs), which supports the development of Chinese innovative drug companies while expanding the variety of drugs at the grassroots level and strengthening the connection of grassroots medication; thirdly, adhering to the principle of balancing traditional and Western medicine, and using both traditional and Western drugs, 48 new varieties of traditional Chinese medicines have been added, covering almost all clinical specialties of Traditional Chinese Medicine, with a focus on diseases where Traditional Chinese Medicine has advantages, such as in cardiology, pulmonology, neurology, gynecology, and pediatric-specific medications. CITIC Construction Investment believes that the adjustment results of the 2026 essential medicines list release positive signals: the number of varieties in the essential medicines list continues to expand, and the number of innovative drugs included is increasing, reflecting comprehensive support for the development of innovative drugs, with the efficiency of medical insurance access for innovative drugs expected to further improve. Recently, industrial capital has been actively increasing its holdings and repurchases in the pharmaceutical (core stock) industry, with multiple listed companies announcing repurchases or shareholder increases, signaling recognition of the sector's value. At the same time, innovative drug companies are accelerating their overseas expansion, and financing data is improving, injecting new momentum into the industry's development. **Related Industries:** Pharmaceutical (core stock) commercial retail: As the terminal link in drug distribution, pharmaceutical retail companies directly benefit from the increase in drug demand brought about by the adjustment of the essential medicines list and the sales boost of traditional Chinese medicine categories driven by the revitalization plan. With the enhancement of residents' health awareness and the expansion of the grassroots medical market, retail companies with a complete offline store network and online operational capabilities are expected to experience a dual growth in customer traffic and performance, with market share likely to further concentrate Traditional Chinese Medicine (core stocks) production: The implementation of the "14th Five-Year" plan for the revitalization and development of Traditional Chinese Medicine (core stocks) will promote the standardization and modernization of the Traditional Chinese Medicine industry, increase support for innovation and research and development in Traditional Chinese Medicine, and benefit production enterprises with classic formulas and unique Traditional Chinese Medicine varieties. At the same time, the adjustment and expansion of Traditional Chinese Medicine varieties in the essential drug catalog will directly enhance the sales and market coverage of related enterprises, driving improvements in corporate profitability. Innovative drugs: The trend of the innovative drug industry chain going overseas continues, with increasing recognition of Chinese innovative drugs in overseas markets and an improving financing environment, providing broader development space for innovative drug companies. Additionally, ongoing policy support for pharmaceutical (core stocks) innovation and attention from industrial capital will accelerate the research and development and commercialization processes of innovative drugs, with companies possessing core research and development capabilities and pipeline reserves gaining more development opportunities. **Industry chain companies:** Hezong Medicine Easy-To-Buy Pharmaceutical: The company is a leading pharmaceutical (core stocks) distribution e-commerce enterprise in China, focusing on digital services for pharmaceutical retail terminals, providing integrated services such as drug procurement and logistics distribution to downstream pharmacies through online platforms. In this sector's market performance, it led with a 20.01% increase, benefiting from the recovery in demand in the pharmaceutical retail market and the expansion of online channels. Renmin Tongtai: As a large pharmaceutical (core stocks) commercial enterprise in Heilongjiang Province, the company has a comprehensive drug distribution network covering various medical institutions and retail terminals across the province. This surge in stock price highlights the market's optimism towards regional pharmaceutical commercial leaders, and the company will benefit from the growth in drug distribution business brought by the adjustment of the essential drug catalog, as well as the expansion of the local medical market. Shanghai Pharmaceuticals (core stocks): A large domestic pharmaceutical commercial leader, the company has a rich variety of drug resources and extensive distribution channels. This time, 15 generic name varieties successfully entered the new essential drug catalog, involving 6 production enterprises and a total of 17 varieties. The company will accelerate the production guarantee and market supply of the included products, further enhancing market share and profitability. Yiming Pharmaceuticals (core stocks): The company focuses on the fields of chemical pharmaceuticals and traditional Chinese medicine, with its core product, Miglitol tablets, successfully selected in the continuation of centralized procurement, showing steady sales growth. It is expected that the net profit attributable to the parent company will increase by 51.77% to 94.37% year-on-year in the first half of 2026, with strong certainty in performance growth (core stocks), benefiting from the increase in market share and product volume under the centralized procurement policy. 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