TCM companies eyeing global market

Dai Biao, general manager of Tasly International Marketing Holdings Co. Ltd., said TCM must gain international recognition, such as approval from authorities like the FDA, so it can establish a reputation as being scientific and effective.

"We encountered many barriers in the FDA phase 2 tests, as local medical professionals and insurance companies are suspicious of TCM safety and effectiveness. But after we enlarged our sample and did 120 successful clinical trials instead of the requirement of 90, things went smoothly in phase 3. We are quite confident of successfully finishing phase 3 by the end of this year," Dai said.

"In the U.S. and some other Western countries, doctors and patients have little cultural exposure to TCM. They are results-oriented and only believe in clinical results published by professional medical agencies. Regardless of a product's nationality or ideology, if the result is convincing, it can win customers."

Chinese TCM companies are increasingly eager to register their products as patented drugs in high-end markets. Di'ao Xin Xue Kang was classed as a therapeutic medicine in the Netherlands in April 2012, paving the way for its development in the European market. In November 2013, Fuzhenghuayu, a capsule for liver ailments, became the latest TCM treatment to successfully complete FDA phase 2 tests.

Liu Zhanglin, vice president of the China Chamber of Commerce for the Import and Export of Medicines and Health Products, considers this trend a necessary step for TCM's long-term international development, but cautions that TCM will struggle to gain the same approval and recognition abroad as it has in China.

"The export of TCM is more complicated than other products as it is subject to local medical authorization requirements, which vary from country to country. It might take a lot of effort and investment to enter each market. Few companies can bear the burden of the research and registration fees for patented drugs," Liu said.