China’s National Medical Products Administration (NMPA) has announced the reclassification of two traditional Chinese medicines—Jingqian Shu Granules and Fufang Taizishen Oral Liquid—from prescription to over-the-counter (OTC) status. The move, effective immediately, reflects Beijing’s ongoing efforts to streamline pharmaceutical access while maintaining safety standards.

Policy Breakdown

• Regulatory Framework: The decision follows the Prescription and Non-Prescription Drug Classification Management Measures (Trial), issued by the former SFDA. The NMPA mandates that drug holders revise packaging and package inserts by December 27, 2025, aligning with the Drug Registration Management Measures.
• Market Impact: The shift could unlock broader consumer access, particularly for Jingqian Shu (targeting premenstrual syndrome) and Fufang Taizishen (addressing pediatric anemia and poor appetite). Analysts estimate a potential 25–30% increase in sales volume post-conversion.
• Compliance Deadlines: Manufacturers must file revised package inserts with provincial authorities by year-end, with all new batches produced post-filing required to use updated labels.

Industry Implications
Pharmaceutical firms stand to benefit from reduced distribution barriers, though heightened emphasis on consumer education is critical. “This transition demands robust self-regulation to prevent misuse,” said Zhang Wei, a senior analyst at China Pharmaceutical Research Institute. Companies like Tong Ren Tang and Yunnan Baiyao may leverage OTC status to expand into e-commerce channels, potentially capturing an additional $150 million in annual revenue.

Consumer Health Angle
The move democratizes access to menstrual health and pediatric care solutions. Jingqian Shu addresses symptoms like premenstrual mood swings and breast tenderness, while Fufang Taizishen targets childhood anemia—a condition affecting 12% of Chinese children under six.

Global Context
China’s OTC market grew 18% in 2024, reaching $28.7 billion. The NMPA’s proactive stance on OTC expansion parallels trends in the EU and U.S., where regulatory harmonization could facilitate cross-border market entry for Chinese OTC products.

Looking Ahead
The December 2025 deadline will test industry agility. Investors should monitor compliance costs versus market expansion potential, with a focus on companies already positioned in OTC distribution networks.

For full regulatory details, refer to the attached variety list and OTC instruction template.-China Health Reform Pulse

Policy Source: https://www.nmpa.gov.cn/xxgk/ggtg/ypggtg/ypqtggtg/20250403164528182.html