3.Pharmaceutical News China and the future

Pharmaceutical News China and the future

Only two decades ago, China was a poor agricultural land, is now the third largest economy in the world with a GDP of over EUR 108 billion in 2006. Experts estimate that by 2020 China is the largest economy in the world.

Pharmaceutical market in China 1

The Chinese pharmaceutical market has shown impressive growth in recent years as the country's rapid economic expansion. Over the past two decades, the pharmaceutical market in China an average of 18 to 20% growth, which is significantly higher than U.S. and European growth during this period (7-9%). The total pharmaceutical market is expected to grow to 0.7 billion in the year 2005, becoming the world's largest pharmaceutical market in 2020.

2, China's pharmaceutical industry

China has a large domestic pharmaceutical industry, providing 80% of drug consumption in China. In 1995 he produced about 3000 state enterprises domestic pharmaceutical production total of billions, billions more were exported, according to the State Pharmaceutical Administration of China (SPAC). The Chinese pharmaceutical industry has increased in value by an average annual growth rate of 16.72% over the past decades.

However, the industry remains small scale, with a scattered geographical distribution, duplicated production processes, and outdated manufacturing technology and management structure. The Chinese pharmaceutical industry also has a lower market concentration and weak competitiveness in international trade, coupled with the lack of patented pharmaceuticals developed in-house.As China joins the World Trade Organization (WTO), it is necessary to integrate more fully into the global economy. The international competition will put intense pressure on the Chinese pharmaceutical industry and further open the door to a lucrative market for non-Chinese companies, especially for pharmaceutical producers and manufacturers. Accession to the WTO binds China by fundamental WTO principles, such as increasing transparency and strengthening of commercial legal procedures. China's commitments to the WTO include the tightening of rules on intellectual property, tariff concessions and market access for non-Chinese suppliers to engage in drug distribution. All these movements create additional opportunities for non-Chinese pharmaceutical companies in China, and in turn an intense pressure on the location of the Chinese pharmaceutical industry.

Therefore, in recent years, Chinese pharmaceutical companies have been merging to improve economies of scale, concentrate resources and increase competitiveness through vertical integration. Many large pharmaceutical companies are also transforming their ownership structures into joint ventures or public companies to be more efficient. According to the CPSC, China aims to become the largest producer of pharmaceuticals and medical devices and instruments in the first half of this century.

3, China Pharmaceutical Foreign Trade

In recent years, many Chinese pharmaceutical companies to participate in the international pharmaceutical market. They not only export of patent medicine, but also to help their global partners in shortening the cycle and reducing the drug discovery and development, providing cost-effective and efficient outsourcing solutions, such as pharmaceutical intermediate. Some Chinese pharmaceutical companies also appear on the Nasdaq market successfully, such as Wuxi Pharma Tech (WX.NYSE) and Simca Pharmaceutical Group (SCR), etc.

Electronic commerce is introduced to the pharmaceutical companies. www.made in china.com is one of the B2B website China's most famous. It offers various trades leads including pharmaceutical information among China factory, manufacturers, suppliers and buyers from around the world.

Pharmaceutical trade shows provide the platform for the leading manufacturers, suppliers and buyers both at home and abroad. Many pharmaceutical companies to participate in China International Medical Equipment Fair (ESAC), China International Oral Care Technology & Equipment Exhibition and Shanghai International Medical Equipment Exhibition and furnishment (IMEFE) and so on. ACES is the largest exhibition in Asia Pacific serving the value chain for medical devices on the market. China International Oral Care Technology & Equipment Exhibition is organized by the China Oral Care Industry Association Center, Exhibition of China's light industry. The show includes oral hygiene products, raw and auxiliary materials, packaging, manufacturing and packaging equipment, oral medical devices and materials.

4, the development of China's pharmaceutical market

First, the price of pharmaceuticals will continue to decline steadily. In June 2004, the price of 400 antibiotics in 24 categories, including penicillin, was reduced on average by 35%. The total value was affected by this reduction in U.S. dollars. The central government has played an important role in reviewing the prices of pharmaceuticals. According to industry experts, the price reduction is coming from retail stores in the hospital pharmacy.

Secondly, the pharmaceutical market to move significantly to the campaign. Data according to The Times, 80% of the counterfeit products are consumed in rural areas. This offers enormous opportunities for pharmaceutical companies to develop markets in rural areas.

Thirdly, China will become the largest pharmaceutical R & D base in the world. In recent years, a growing number of Western pharmaceutical companies like GSK, Roche, Novo Nordisk, etc., came to China and set up R & D. Twenty of the world's leading pharmaceutical companies have established manufacturing joint ventures in China. Some have also set up an exclusive manufacturing behavior. At present, one of the largest 500 foreign companies, 14 of them are pharmaceutical companies.

The fourth trend is that foreign companies will start a price war over the counter in the coming years. Based on expert analysis, foreign companies have been closely following the expansion of the OTC market. In September 2003, German Mike Company began its project of discretion in China.