Rising price of Yunnan, southwest drought in 37 pharmaceutical companies in order to temporarily stock deal

Yunnan is rich in resources of Chinese herbalZhao able to tell reporters: "production and
medicines since ancient times produced in Yunnan, 37,management aspects of the company have yet to
Tianma, cloud costas, Chinese angelica, Chinesemeet water and electricity. 37 acquisitions in this area
caterpillar fungus and other herbs known throughoutis through intermediaries, most recently prices have
the country. The causes of the drought, Yunnan andgone up more than the acquisition of the existence
Chinese herbal medicine that listed the company'sof some difficulties, but We have sufficient reserves
costs may have to upgrade in the next few years,of 37. 37 temporary price increases will not impact
however, reporters have learned that, at presentthe company's performance. "
there are adequate stocks of pharmaceutical 
companies have a short little impact or the existenceThe greater reliance on 37 of the Yunnanbaiyao
of long-term effects.appear to be relatively cautious, the company's
 Deputy General Manager Wu told reporters: "The
Listed in Yunnan pharmaceutical companies are mainlycurrent market price changes at the 37, but we can
Yunnanbaiyao (55.85,0.00,0.00%) (000538) and thedeal with certain inventory. From a financial point of
Kunming Pharmaceutical (11.68,0.00,0.00%) (600,422),view, the price of 37 fluctuations on the company's
37 precisely because the two main raw material forimpact is still not fully assessed, but little effect.
co - one. Early drought late last year when the priceHowever, the 37 drought cut the company's
of Yunnan region 37 less than hundred dollars perlong-term impact is likely to exist. "
kilogram, while the current price is close to 500 yuan. 
 It is noteworthy that 37 from sowing to harvesting,
Yunnan Wenshan is the world's largest exporter ofmust be subject to three years time, annual root of
37, where 37 and its rich resources. However, the37 is usually used as seeds, plant the following year in
reporter saw in Wenshan, because water irrigation,order to flower seed. A severe drought this year,
many paddy fields and dry fields have beenfar-reaching impact on the yield of 37 at least until
Abandoned rarely see the green. According to2012.
Wenshan public information, the state's 37 
disaster-stricken area of about 5.7 million mu,Yunnan, a local medicine industry, told reporters: "37
accounting for 94.5% of the total area undersubstantially increases the price of spot purchases of
cultivation, infested an area of about 2.8 million mu,pharmaceutical companies is certainly influential, this
accounting for disaster-stricken area of 48.47%.influence depends on the number of drug dealers
 inventory. But what is certain is that this effect
According to report, and Kunming PharmaceuticalBeginning this year, can be realized. "
Yunnanbaiyao 37 itself is not involved in the 
cultivation, of which Kunming Pharmaceutical mainlyThe face of sharply rising raw material prices, the
through brokers to buy 37; while Yunnanbaiyao thelower drug prices will go up whether to become the
exception of certain types of order-type production,focus of attention. Wu told reporters: "drug prices
the acquisition of 37 in the Wenshan district of thewould rise is unclear, because our prices have to go
main also introduced local farmers to purchasethrough Development and Reform Commission
approach.approval, if necessary price increases, you must first
 report to the Development and Reform Commission.
Kunming Pharmaceutical secretaries to directorate XU