Market Demand Drives Steady Growth of Pharmaceutical Industry in the First Half of the Year

Business News Agency September 9: The national pharmaceutical industry continued its steady growth in the first half of this year. Experts in the industry believe that the stable supply and demand in the domestic pharmaceutical market and the balance between production and sales are mainly due to the introduction and implementation of various policies such as deepening the reform of the medical and health system, creating favorable external conditions for the pharmaceutical industry and greatly stimulating the demand for the pharmaceutical market.

The operation is growing steadily

According to data from the Ministry of Industry and Information Technology, the pharmaceutical industry in the first half of the year showed steady growth, mainly in the following areas:

Production and sales grew steadily. From January to June, the added value of the pharmaceutical industry above designated size increased by 14.9% year-on-year; the industrial sales value was 564.41 billion yuan, an increase of 24.8% from the same period of last year. In the industrial sales value, chemical raw material medicine and chemical preparations manufacturing industry completed 102.9 billion yuan and 157.54 billion yuan, respectively, an increase of 22.1% and 19.4% year-on-year; Chinese patent medicine manufacturing industry and Chinese medicine decoction processing industry completed 110.72 billion yuan and 316.1 million respectively. Billion yuan, an increase of 27.6% and 38.1% year-on-year; bio-chemical products manufacturing industry completed 57.15 billion yuan, an increase of 35.2%; medical equipment and equipment, health materials and medical supplies manufacturing completed 50.09 billion yuan, respectively, 29.05 billion yuan, The year-on-year increase was 21.2% and 26.3% respectively.

Exports grew rapidly. The pharmaceutical industry above designated size achieved export delivery value of 60.58 billion yuan from January to June, an increase of 28.3% year-on-year. Among them, chemical raw material medicine and chemical preparations manufacturing industry completed 23.32 billion yuan and 5.88 billion yuan, respectively, an increase of 26.5% and 28.2% respectively; Chinese patent medicine manufacturing industry and Chinese medicine decoction processing industry completed 2.04 billion yuan and 1.1 billion yuan, respectively, year-on-year. The growth rate was 31.6% and 11.5% respectively; the biochemical and biochemical product manufacturing industry was 7.82 billion yuan, up 48.1% year-on-year; the medical equipment, equipment, health materials, and medical supplies manufacturing industries were respectively 15.3 billion yuan and 3.9 billion yuan, up 22.5 percent year-on-year respectively. %, 25%.

Profit rose sharply. The pharmaceutical industry above designated size achieved a profit of 47.02 billion yuan from January to May, a year-on-year increase of 37%. Among them, the manufacturing of chemical raw material medicines and chemical preparations completed 7.89 billion yuan and 14.48 billion yuan respectively, an increase of 50.4% and 30% year-on-year; respectively, Chinese patent medicine manufacturing and Chinese medicine decoction processing industries completed 8.61 billion yuan and 1.85 billion yuan, respectively. The growth rate was 27.8% and 57.4% respectively; the bio-biochemical product manufacturing industry was 6.28 billion yuan, up 63.4% year-on-year; the sanitary materials and medical supplies manufacturing industry was 1.81 billion yuan, up 31.2% year-on-year; and the medical equipment, equipment, and equipment were completed 4.03 billion yuan. The year-on-year increase was 20.4%. From January to May, cumulative losses of loss-making enterprises in the pharmaceutical industry above designated size were 2.21 billion yuan, a year-on-year decrease of 2.1%.

Investment increased steadily. From January to May, the pharmaceutical industry completed a total investment of 57.24 billion yuan in fixed assets, a year-on-year increase of 28.3%.

The main factors driving growth

Industry experts believe that the main factors that boost the growth of the industry are the following:

The first is the rapid growth of domestic demand. This year marks the second year of the implementation of the key implementation plan for the new healthcare reform. The reform of the national essential medicine system and other supporting reforms will gradually enter the accelerated implementation phase. The coverage of basic medical insurance for NCMS and urban residents will continue to expand and basic medical insurance The continuous improvement of standards and the construction and improvement of the basic medical service system have prompted the continuous expansion of the domestic pharmaceutical market. In 2009, the per capita drug use in China reached 573 yuan, an increase of 25% over 2008. It is expected that this growth rate will still be maintained in 2010.

Followed by stable recovery of pharmaceutical exports. In 2009, affected by the impact of the international financial crisis, the growth rate of pharmaceutical exports slowed down. The year-on-year export delivery value increased by only 10.7% year-on-year. However, since August 2009, the growth rate of exports has rebounded. This year it has continued its upward trend and reached the level before the financial crisis. This fully reflects the rigid characteristics of global drug demand. The prices of major export products have risen steadily, creating conditions for the expansion of pharmaceutical exports.

Third, the increase in sales margins. According to the analysis of related information, while the market demand is generally increasing, many enterprises have seized the opportunity to expand the sales of new products and high value-added products. Some innovative drugs have been put on the market one after another to generate benefits, and they have played an active role in adjusting the product structure of the entire industry. The promotion effect.

Unfavorable factors still exist

The impact of the international financial crisis on China's pharmaceutical industry is currently disappearing with the further improvement of the global economy and the healthy development of the domestic economy. With the advantages of favorable conditions, the potential of the market can be effectively released. However, industry experts still reminded that some disadvantages must be given enough attention.

First, the new policy has great influence. We will accelerate the reform of the pharmaceutical and health system, accelerate the implementation of the basic drug system, and introduce relevant policies for the procurement of essential drugs and drug price management. The new standards for the discharge of water pollutants from the pharmaceutical industry will be fully implemented on July 1. The new GMP standards will enter the final stage. During the approval stage, this series of policies will have a greater impact on the development and operation of the pharmaceutical industry.

Second, there is a lot of pressure on drug prices. Solving the problem of “difficult and expensive to see a doctor” is an important goal of the new medical reform. In addition to the year-on-year decline in drug prices brought about by centralized procurement, the problem of high drug prices this year has once again aroused the attention of the whole society. Some policies to strengthen drug price control are also under formulation, and drug prices have to be further reduced.

Third, production costs have risen. In the context of inflation expectations, raw and auxiliary materials and power prices for grain, chemical products, water, electricity, and steam all showed upward momentum. To meet the requirements of the new GMP standards and new wastewater discharge standards, companies need to invest a lot of funds to implement technological transformation, which will significantly increase operating costs, and many companies will also face the pressure of funding.

Fourth, excess capacity has made the market environment worse. Under the conditions of ample capital, driven by profits, in recent years some companies have ignored the national industrial policies and have blindly added new construction projects. This has resulted in serious overcapacity of many products including vitamin C and penicillin, vicious competition, and falling prices. Damage to the interests of the entire industry.

Suggestions and measures to promote development

In order to make the pharmaceutical industry in China continue to develop on a healthy track, relevant departments such as the Pharmaceutical Department of the Consumer Products Industry Department of the Ministry of Industry and Information Technology will provide opinions and suggestions on the next key work and development trend of the pharmaceutical industry.

Formulated the "Guiding Opinions on Accelerating the Structural Adjustment of the Pharmaceutical Industry". In accordance with the overall requirements for deepening the reform of the medical and health system and taking structural adjustment as the main line, we will strengthen independent innovation, promote research and development of new varieties and new technologies, promote mergers and reorganizations, cultivate large enterprise groups, accelerate technological innovation, and enhance corporate quality and international competitiveness.

Organize the preparation of the “Twelfth Five-year Development Plan for the pharmaceutical industry”. Mobilize the participation of all parties to sum up the development status of the pharmaceutical industry in the “Eleventh Five-Year Plan”, scientifically determine the goals, tasks and development priorities for the “Twelfth Five-Year” development, and effectively guide the development of China's pharmaceutical industry in the next five years.

Strengthen the management of the basic pharmaceutical industry. To carry out research on the basic drug production and reserve supply guarantee system. Together with the pharmaceutical industry authorities in various regions, they will guide enterprises to actively participate in the procurement of essential drugs for bids across the country, support the successful bidders to step up production, and urge the successful bidders to produce essential drugs as required to ensure supply.

Strengthen industry statistics. Support the local pharmaceutical industry authorities to strengthen the statistical system construction, invest in strength and rationalize relations. Strengthen the communication with key companies. Expand the scope of direct online reporting of statistical information. We will do a good job in analyzing and sorting out statistical information, promoting communication and exchange of economic operations across the country, and promoting the overall management of the pharmaceutical industry.