Pientzehuang: The Moutai of Traditional Chinese Medicine

Pien Tze Huang, the pill shown below, may look like a typical Chinese medicine, but little do most know that each pill costs a staggering 760 yuan (US$105). This makes it one of the most expensive prepared Traditional Chinese Medicines (TCM) in China. A comparable product in terms of price is Tongrentang’s Angong Niuhuang Pill, officially priced at 860 yuan per pill but is now sold at a lower price than Pien Tze Huang in the retail market.

Pien Tze Huang has an incredibly long history, dating back to 1555 A.D. during the Ming Dynasty when it was created by a court doctor. That’s over 469 years of survival—a testament to its efficacy and enduring relevance. Despite the advancement of modern medicine and competition from pharmaceuticals and other TCM remedies, Pien Tze Huang continues to thrive. By the Lindy Effect, one could argue that Pien Tze Huang has a high probability of lasting for another 500 years.

Why Is Pien Tze Huang So Expensive?

1. Exotic Ingredients and Complex Manufacturing: Pien Tze Huang is made from rare ingredients like moschus (musk), derived from the navel gland secretions of male musk deer, and ox gallstone, which is found in only about 1 in 500–1,000 bovine gallbladders. A report by the South China Morning Post highlighted that the import value of ox gallstone has nearly tripled over the past five years, reaching HK$1.7 billion (US$218 million). The complexity of the manufacturing process further adds to the cost.

2. Used for Critical Health Issues: The medicine is primarily used to treat liver conditions and even cancers. While clinical human studies are lacking, tests on animals support its pharmaceutical effects. Its active ingredients have shown efficacy, though actual results may vary depending on the patient and condition. Importantly, belief in its effectiveness sustains demand. For critical health issues like liver problems or life-threatening cancers, patients often cling to any potential cures that money can buy. With rising affluence in China, more consumers can afford this exclusive medicine, positioning Pien Tze Huang well in the market.

3. Premium Branding: Pien Tze Huang can be said to be the “Moutai of TCM,” commanding the premium price among prepared TCM products. Its prescription and technology are classified as state secrets, adding an air of exclusivity. It is also one of China’s top TCM exports. For instance, Singapore’s Eu Yan Sang sells it at an even higher price of S$228 (~US$170) per pill. The national recognition it has received further validates its premium status and pricing.