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China Chemical Pharmaceutical Industry Report, 2007

Published: Dec/2007

Hard Copy  USD $ 499
Pages: 47 Electronic(PDF)  USD $ 499
Report Code: Enterprisewide  USD $ 998
 

Global medicine industry maintains rapid growth continuously.Its scale has started to maintain fast growth since the middle and late in the 20th century. The total output value increased to USD 602 billion in 2005 from USD 21.8 billion in 1970, the annual growth rate amounted to 8.3%, more than doubled to 3.5%, the growth rate of global DGP in the same period. With the further increase of R&D cost for new medicine, it is estimated that the development of company of new medicine will slow down, far slower than the growth pace of generic drug companies, since the patent of a large number of important medicine will end, in addition, all the governments cut down the expense on hygiene. Moreover, due to the further increase of environment protection and cost pressure in the developed regions, it is a trend that the raw material drug production will transfer to China, India etc, which will bring opportunities for the raw material drug companies in China.


Sales and Growth Rate of Global Medicine Market, 1970-2006 (USD in 100 Million) 
 


The development of China's pharmaceutical industry is faster than the average level in the world, and it has maintained the rapid growth in recent years, the CAGR reaching 21% from 2000 to 2005, far higher than 8%, the average level in the world. It is forecasted that the pharmaceutical industry in China will remain the fast growth since the rapid growth of China's macro economy, improvement of urbanization, as well as increasingly aging population. Currently, the pharmaceutical companies in China are small, with a large amount, and with fierce competition of homogenous competition, as well as the whole performance declines, which mainly attribute that companies are in the serious lack of innovation and core competitive advantages.

Sales and Growth Rate of China's Chemical Pharmaceutical Industry, 1999-2007 (RMB in 100 Million) 
 

Sales and Growth Rate of China's Raw Material Drug Industry, 1999-2007 (RMB in 100 Million) 

 


The medical reform makes the medicine industry in China step into the healthier development track. China central government has issued many relevant policies to regulate the medicine industry since 2006, which shows the determination of the state to solve the trouble in the medicine industry, even if a lot of problems in China's medicine industry have not been solved fundamentally. Meanwhile, the new medicine reform plan will be issued soon, and the integrated thought is to promote the medical hygiene system reform, medical guaranty reform and drug circulation system reform, aiming at establishing the medical insurance system covering China. These measures will solve the existing problems of China's medicine industry with no doubt, as well as release the medical demand of people without medical insurance and the rural population, which will make the whole industry step into the healthier development track.

The medicine industry in China owns a huge market potential, and medical system reform will release the market demand. Currently, the chemical preparations industry in China can not compete with transnational pharmaceutical giants to develop new patent drugs, while the rapid expansion of generic drug market will bring the opportunity for China's chemical preparations companies, so it is a good choice to develop the generic drug. It is trend for the international medicine market transfers the chemical raw material drug production, since China and India have become the best places on the grounds of the lower production cost. Now, it is very important for raw material drug companies in China to seize the favorable historic opportunity.



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