Eagle Health is launching an organic ‘immortality herb’ in China
Health & Biotech
Health & Biotech
China-focused supplement maker Eagle Health is moving into Traditional Chinese Medicine in a bid to take a hold of the growing market.
The company will initially launch ten products – including its unique Dendrobium product, apparently theonly such product to be certified organic by China’s Food and Drug Administration.
Dendrobium is a type of orchid, the stem of which has been used in Traditional Chinese Medicine for thousands of years.
It has been known as the “immortality herb” once fabled for its ability to resurrect the dead — but now used with less demending patients to aid digestion, eye disease, arthritis and diabetes.
Eagle Health (ASX:EHH) will launch as many as 50 new products into pharmacies and its own stores in the next three months, capitalising on the country’s renewed focus on the medicines.
China’s annual herbal drug production is said to be worth $US48 billion ($63 billion).
In its last five-year plan China set out a clear direction for the Traditional Chinese Medicine market, adding to the country’s Health China 2030 Plan passed in 2016.
But unlike traditional practices, the medicines will only be made available in pharmacies, much like other western alternatives.
“We are pleased to be able to offer these new products, which combine TCM with the western way of consuming supplements,” chief Zhang Ming Wang said.
“While TCM is well understood throughout China, it is often supplied at small retail outlets and hence we believe our consumer-friendly packaging and ease of access, like other modern pharmaceutical products, has the potential to revolutionise this category.”
Shares in the company were trading flat at 29c on the news – still below its IPO issue price of 40c last August.
The company has so far focused on the growing Chinese diabetes market with its protein powders and Amino Acid ranges.
In the last quarter, it reported sales of $19.8 million.