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You are here: Home » News » The first half of China’s pharmaceutical industry grew 28.3%
The first half of China’s pharmaceutical industry grew 28.3%

The first half of this year, the pharmaceutical industry continued to maintain steady growth. Industry experts believe that the domestic pharmaceutical market demand and supply stability, balance production and sales, mainly due to state deepening health system reform promulgated and implemented a number of policies such as the pharmaceutical industry to create a favorable external conditions, greatly boosting the pharmaceutical market demand.
Run showed a steady growth
From the Ministry of Industry and Information Technology data show that in the first half showed a steady growth pharmaceutical operation, mainly in the following areas:
Steady growth in sales. 1 to 6 months, above-scale industrial added value increased Medicine of 14.9%; industrial sales output value of 564.41 billion yuan, an increase of 24.8%. In the industrial sales output value, chemical raw materials and chemical preparations manufacturing completed 102.9 billion yuan, respectively, and 157.54 billion yuan, an increase of 22.1% and 19.4%; proprietary Chinese Herbal Pieces manufacturing and processing industry completed 110.72 billion yuan and 316.1, respectively, billion, an increase of 27.6% and 38.1%; biological and biochemical products industry completed 57.15 billion yuan, an increase of 35.2%; medical equipment and instruments, sanitary materials and medical supplies manufacturing respectively, completed 50.09 billion yuan, 29.05 billion yuan, an increase of 21.2%, 26.3%.
Rapid export growth. Scale 1 to June pharmaceutical industry export delivery value of 60.58 billion yuan, an increase of 28.3%. Among them, chemical raw materials and chemical preparations manufacturing completed 23.32 billion yuan, respectively, and 5.88 billion yuan, an increase of 26.5% and 28.2%; proprietary Chinese Herbal Pieces manufacturing and processing industries respectively, completed 2.04 billion yuan and 11 billion yuan, respectively, an increase of 31.6% and 11.5%; biological and biochemical products industry completed 7.82 billion yuan, an increase of 48.1%; medical equipment and instruments, sanitary materials and medical supplies manufacturing respectively, completed 15.3 billion yuan, 3.9 billion yuan, an increase of 22.5 %, 25%.
Profits increased significantly. Scale pharmaceutical industry realized profits from January to May 47.02 billion yuan, an increase of 37%. Among them, chemical raw materials and chemical preparations manufacturing completed 7.89 billion yuan, respectively, and 14.85 billion yuan, an increase of 50.4% and 30%; proprietary Chinese Herbal Pieces manufacturing and processing industries respectively, completed 8.61 billion yuan and 18.5 billion yuan, an respectively, an increase of 27.8 percent and 57.4 percent; biological and biochemical products industry completed 6.28 billion yuan, an increase of 63.4%; sanitary materials and medical supplies manufacturing completed 1.81 billion yuan, an increase of 31.2%; medical equipment and instruments completed 4.03 billion yuan, an increase of 20.4%. 1 ~ May, large-scale pharmaceutical industry accumulated losses of 2.21 billion yuan loss-making enterprises, down 2.1%.
Investment increased steadily. 1 ~ May the pharmaceutical industry investment in fixed assets totaled 57.24 billion yuan, an increase of 28.3%.

The main factors driving growth
Industry experts believe that the main factors boosting the growth of the industry in the following aspects:
The first is the rapid growth of domestic demand. This year is the implementation of the recent focus on the implementation of the new medical reform program nexus of the second year, the national essential drug system reform and construction work will gradually enter accelerate the implementation stage, the new rural cooperative, urban residents’ basic medical insurance coverage continues to expand and basic medical insurance standard continues to improve, as well as basic medical service system and improve the building, prompting the domestic pharmaceutical market is expanding. 2009 China’s per capita amounted to 573 yuan medication, compared with 2008 growth of 25%. 2010 is expected to continue to maintain this growth rate.
Followed by pharmaceutical exports stabilizes. 2009 adversely affected by the international financial crisis, pharmaceutical export growth slowed, the annual export value increased by only 10.7%. However, beginning in August 2009, export growth rebounded this year, continue to follow the momentum of recovery, reaching pre-crisis levels. It also fully embodies the characteristics of the global pharmaceutical rigid demand. The main export products prices rose steadily for the expansion of pharmaceutical exports create the conditions.
Third, the sales margin improved. According to the relevant information analysis, a general increase in demand in the market at the same time, many companies seize opportunities to expand new products, sales of high value-added products, a number of innovative drugs put on the market and produce benefits, the entire industry has played a positive adjustment of product structure role in promoting.

Unfavorable factors still exist
The international financial crisis on the impact of China’s pharmaceutical industry is now a further improvement in the global economy and the healthy development of the domestic economy gradually disappeared, was placed to the advantage of its market potential to be a powerful release. However, industry experts still warn that some unfavorable factors must be taken seriously enough.
First, the new policy influence. Deepening health system reform, speeding up, the full implementation of the basic drug system, bidding and purchasing of essential drugs and medicines price management policies will be launched soon, July 1 new pharmaceutical industrial water pollutant discharge standards are fully implemented, the new GMP standards into the final the approval stage, this series will have policies development and operation of the pharmaceutical industry have a greater impact.
Second, the pressure of big drug prices. Solve “difficult and expensive” problem is the new medical reform is an important goal. In addition to centralized purchasing to bring drug prices declining to hold down prices this year, the issue has again aroused great concern of the whole society, to strengthen the drug price control some of the policies are also developed, drug prices have further reduced requirements.
Third, the production costs. In the context of inflation expectations, food, chemical products, water, electricity, gas and other raw (auxiliary) materials and power prices showed a rising trend. To meet the new GMP standards and new wastewater discharge standards, companies need to invest heavily in the implementation of technology that will significantly improve the operational costs, many companies will face funding pressures.
Fourth, the excess capacity of the market situation tends to worsen. In the capital adequacy conditions, driven by profit, in recent years, some companies ignore national industrial policy, illegal blind new construction projects, so including vitamin C, penicillin products, including many serious excess capacity, vicious competition seriously, prices continued to decline, damage to the interests of the entire industry.

Proposals and measures to promote development
To make China’s pharmaceutical industry in the healthy track sustained and rapid development, the Ministry of Industry and Information Technology Consumer Goods Industry Medical Department and other relevant departments, the next step for the pharmaceutical industry priorities and trends comments and suggestions.
Formulated and issued “on accelerating the restructuring of the pharmaceutical industry guidance.” In accordance with the deepening of the general requirements of the medical and health system reform, restructuring as the main line, strengthen independent innovation, promote new varieties, new technology research and development, and promote mergers and acquisitions, cultivating large enterprise groups, to accelerate technological innovation, enhance quality and international competitiveness.
Organize the preparation of “pharmaceutical industry” second five “development plan.” Mobilize all forces involved, summed up the pharmaceutical industry “Eleventh Five-Year” development, scientifically determine the “second five” development objectives, tasks and priorities to effectively guide our development of pharmaceutical industry in the next five years.
To strengthen the management of essential drugs industry. To carry out basic drug production and supply system of reserves. With local pharmaceutical industry authorities a guide enterprises to actively participate in the country’s essential drugs bidding, to support the successful production companies to seize urge successful enterprises required to produce essential drugs to ensure supply.
Strengthen industry statistics. Support local authorities to strengthen the pharmaceutical industry statistics system construction, investment strength, straightening out relations. Strengthen the key enterprises of communication. Statistical information online to expand the scope of direct reporting. Do collate statistical information, and promote communication and exchanges around the economic operation, and promote the overall management of the pharmaceutical industry to enhance the level.

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