What Is Pharmaceutical Industry Analysis?

The pharmaceutical industry is an important part of China's national economy. It is a combination of traditional and modern industries, and one, two, and three industries. Its main categories include: chemical raw materials and preparations, Chinese medicinal materials, Chinese medicine decoction pieces, Chinese patent medicines, antibiotics, biological products, biochemical drugs, radiopharmaceuticals, medical devices, sanitary materials, pharmaceutical machinery, medicinal packaging materials and pharmaceutical businesses. The pharmaceutical industry plays a very important role in protecting and improving people's health, improving the quality of life, preparing for family planning, disaster prevention and epidemic prevention, military readiness, and promoting economic development and social progress.

Chinese name: Pharmaceutical industry
Types of: An important part of the national economy

Make up: Traditional and modern industries
Object: Family planning, disaster relief, and military readiness

Basic situation of the pharmaceutical industry

Rapid development of the pharmaceutical industry

In 2000, the pharmaceutical industry (in English: Medical Industry) completed a total output value of 233.2 billion yuan, an average annual increase of 17.5%, which is higher than the 15% target of the Ninth Five-Year Plan. The industrial added value was 57.8 billion yuan, with an average annual growth rate of 15.5%. The total commercial sales of pharmaceuticals was 150.9 billion yuan, an increase of 70.5 billion yuan over 1995, with an average annual growth rate of 13.4%. The total import and export of pharmaceutical products reached US $ 6.4 billion, of which US $ 3.8 billion was exported, an increase of US $ 800 million over 1995, with an average annual growth rate of 4.8%. An outward-oriented pharmaceutical economy was gradually formed. The pharmaceutical industry realized a total of 27 billion yuan in profits and taxes, an increase of 15.5 billion yuan over 1995, an average annual growth rate of 18.6%, and realized profits of 14.38 billion yuan, an increase of 9.43 billion yuan over 1995, an average annual growth of 24.5%. "The plan sets an 18% target. The pharmaceutical business realized a profit of 760 million yuan, an increase of 400 million yuan over 1995 and an average annual growth rate of 16.1%. The pharmaceutical industry realized a situation in which the benefit growth was faster than the total growth, and the mode of economic growth began to change.

In 2009, the sales of the third terminal reached 101.4 billion yuan, a year-on-year increase of 26.7%.

The year-on-year growth rate of the total revenue and profit of the pharmaceutical industry in August 2010 was 25.69% and 34.71%.

Structural improvement in the pharmaceutical industry

2. The pharmaceutical economic structure has improved.

In the fierce market competition, the pharmaceutical industry through various forms of mergers, mergers and reorganizations, to a certain extent, has changed the situation of too small and over-dispersed pharmaceutical companies and increased the concentration of production. In the pharmaceutical industry, 25 companies have entered the ranks of 520 large enterprises in the country. The production concentration of the top 60 companies in the pharmaceutical industry sales was 35.7%, which was 16 percentage points higher than the 19.7% at the end of the Eighth Five-Year Plan period. A number of advantageous brand-name companies have gradually grown in the fierce market competition. The number of manufacturers of large tonnage products such as penicillin, vitamin C, synthetic vitamin E, aspirin, and paracetamol has been significantly reduced. The production concentration of the first 50 companies in the five categories of tablets, powder injections, water injections, infusions, and capsules reached 44.3%, 97.6%, 66.5%, 58.9%, and 56.2%.

The structure of ownership has been further adjusted, and a pattern of common development with multiple ownerships as the mainstay has been basically formed. In terms of output value, the share of the share-holding economy in the entire industry has increased from 12% at the beginning of the "Ninth Five-Year Plan" period to 33.2%, the "foreign capital" economy has increased from 15% to 18.8%, and the state-owned economy has fallen from 55% to 36.1%.

The pace of the reform of the pharmaceutical circulation system has accelerated, and the pharmaceutical business has broken the pattern of state-owned commercial monopolies formed under the long-term planned economy system. The property rights structure has developed in a diversified direction. A number of more standardized joint-stock enterprises and larger enterprise groups have been established. Business methods have begun to change. New business methods, such as general agency, general distribution, centralized distribution, and chain operation, have continued to emerge. In particular, chain operations have developed significantly during the Ninth Five-Year Plan period. The country has established large and medium-sized cities. There are nearly 200 pharmaceutical chain companies and more than 5,000 drug stores. A number of companies have actively explored and piloted pharmaceutical e-commerce.

The pharmaceutical economy in the western region has made great progress. Sichuan has become a major Chinese medicine production province. Yunnan, Guizhou, Qinghai, Gansu, Inner Mongolia, Guangxi and other provinces and regions have made full use of the advantages of local resources, and have become China's national medicine production base, promoting local economic development and optimizing the regional economic structure.

Science and Education Revitalizing Medicine in Pharmaceutical Industry

3. "Science and Education Revitalizing Medicine" achieved certain results.

The pharmaceutical industry has implemented the policy of "rejuvenating medicine with science and education" and increased the intensity of research and development of new products. In 1999, the output value rate of new products reached 15.8%. During the "Ninth Five-Year Plan" period, China's pharmaceutical companies and research institutes obtained a total of 5043 new drug certificates, involving 2,112 varieties, including 108 national first-class new drug certificates.

The proportion of -lactam series products with clinically accurate efficacy and low toxic and side effects in the antibiotic chemical raw materials increased from 15.3% at the end of the "Eighth Five-Year Plan" to 20.3% at the end of 1999; some key pharmaceutical intermediates such as 6-aminopenicillic acid (6-APA), 7-aminocephalosporanic acid (7-ACA), 7-amino3-deacetoxycephalosporanic acid (7-ADCA), isophytol, trimethyl Hydroquinone, etc., have basically replaced imports. Natural vitamin E, roxithromycin, azithromycin and other important products have achieved industrialization, and new formulations such as controlled release, slow release, and transdermal have been developed.

A number of high-tech technologies such as high-efficiency separation and purification technology, supercritical extraction technology, automatic control technology of production process, microencapsulation and targeting technology have been popularized and applied in pharmaceutical production. The yield of penicillin has increased from 0.7-0.8 ton / year at the end of the "Eighth Five-Year Plan" to 1.0-1.1 tons of cubic meters of fermentation volume. The total yield of vitamin C has increased from 48% at the end of the "Eighth Five-Year Plan" to about 60% ; Dexamethasone production uses a new biological dehydrogenation process, which greatly reduces costs and improves international competitiveness, not only replacing imports, but also exporting in batches.

The development of new Chinese medicine products has accelerated, especially in the treatment and prevention of cardiovascular and cerebrovascular, digestive system, hepatitis and other diseases. The Chinese medicine "Xingling Granules" and "Danshen Diwan" have passed the pre-examination by the US FDA (US Food and Drug Administration) and entered clinical trials, which has taken another step for Chinese medicines to enter the international market. Tibetan medicine and other ethnic medicines have also moved from ethnic minority areas to the country.

The level of pharmaceutical equipment and production conditions have been greatly improved. During the "Ninth Five-Year Plan" period, a large number of advanced and applicable equipment such as double-loop air-lift fermentation reactors, dynamic extraction equipment, and microporous membrane filters were industrialized and widely used in the pharmaceutical industry. A number of companies have passed ISO9000 certification. By the end of 2000, more than 780 pharmaceutical companies (workshops, dosage forms) had passed GMP (Good Manufacturing Practice) certification, and the quality of medicines had improved.

Some high-end, precision, and sharp products in medical equipment such as magnetic resonance, CT (X-ray computed tomography imaging device), and color B-ultrasound have achieved industrialization, and low- and medium-energy linear accelerators have basically been domestically produced. , Digital subtraction imaging systems, laser surgical instruments, fiber optic endoscopes, etc. that can be mass-produced and comply with international technical standards in all Chinese direct digital X-ray medical imaging systems have been successfully developed in China and put into clinical applications, high-power carbon dioxide heart laser The therapeutic instrument was successfully developed and obtained a national patent. Medical device product standards are gradually in line with international standards, and the supporting procurement of components has begun to achieve internationalization. Nearly 100 companies have passed ISO9000 certification.

Opening of the pharmaceutical industry

4. Obvious achievements have been made in opening up.

The pharmaceutical industry is one of the earliest open industries in China, and it is also a relatively successful one in using foreign capital. The top 20 pharmaceutical companies in the world have all invested and built factories in China. Pilot work of Sino-foreign joint ventures in pharmaceutical commerce is progressing smoothly. The establishment of these "three-funded" enterprises not only introduced funds, but also brought new products, new technologies, new equipment, and new operating methods and management concepts, which played a good role model for domestic enterprises.

Major issues in the pharmaceutical industry

The problems of many, small, scattered, and disorderly pharmaceutical companies are prominent, and there is a lack of large leading companies.

There were 3,613 pharmaceutical industrial enterprises nationwide, of which 423 were large enterprises, accounting for only 11.7% of the total. Most companies are not highly specialized and lack their own brands and distinctive varieties. Most enterprises are not only small in scale, poor in production conditions, backward in technology, outdated equipment, low in management level, but also scattered in layout, and their production concentration is far lower than that of advanced countries. In 2000, the production concentration of the top 60 pharmaceutical companies in China's pharmaceutical industry was 35.7%, while the sales of the top 20 pharmaceutical companies in the world accounted for about 60% of the global pharmaceutical market share.

2. The enterprise-centered technology innovation system has not yet been formed.

The basis for new drug innovation is weak, the mechanism for the rapid technological industrialization of pharmaceutical technological innovation and scientific and technological achievements has not yet been fully formed, insufficient investment in pharmaceutical science and technology, and the lack of new products with China's independent intellectual property rights. Product updates are slow and duplication is serious. 97% of the chemical raw materials are "imitation" products. There are many old products and few new products; there are many low-grade and low-value-added products, and high-tech and high-value-added products; there are many types of repeated production and few exclusive brands. Some products such as gentamicin, paracetamol, vitamin B1, metronidazole and other preparations are produced by dozens or even hundreds of companies. Even for new products, the phenomenon of repeated production is very serious. For example, the second-class new drug levofloxacin preparations are produced by 34 companies, and clarithromycin preparations are produced by 35 companies.

The pace of applying high technology to transform traditional industries is slow. Most old products have low technical and economic indicators, backward technology, high cost, and lack of international competitiveness.

3. The pharmaceutical distribution system is not yet complete.

After the three-tier wholesale structure formed under the planned economy system was basically broken, a new and effective pharmaceutical distribution system has not yet been fully formed, and the illegal drug bazaar market has been repeatedly banned. Coupled with the low level of repeated construction in the production field for many years, the supply of most varieties has seriously exceeded supply, the circulation order is chaotic, and the task of governance is arduous. However, leading pharmaceutical distribution companies such as Kyushu Tong, Sinopharm Holdings, and China Resources are now merging commercial companies on a large scale to change the current pharmaceutical market.

4. Poor quality performance of medical device products.

Most of the medical device products that China can produce are conventional low-end products with low added value, and most of the high-end, precise, and sharp medical devices and new practical medical devices that are clinically needed need to be imported. The replacement of conventional medical equipment products is slow, the technology content is low, the product quality cannot meet the requirements of high quality of medical care, the product repair rate and shutdown rate are higher than similar foreign products, and the reliability of the product is unstable.

5. The variety of the preparation does not match the variety of the drug substance.

China is already a major producer of bulk drugs in the world, but there is insufficient research and development of pharmaceutical preparation technology, low level of preparations, most preparation products are not high quality, it is difficult to enter the international market; China's average one raw material can only be made into three preparations One foreign drug substance can be made into dozens or even dozens of preparations; the preparation technology is backward, and the quality stability of the preparation products is not high.

6. The import and export structure of pharmaceutical products is unreasonable.

China still does not get rid of the traditional export of low-value-added, heavily polluted chemical raw materials and conventional surgical instruments, sanitary materials, and Chinese herbal medicines, while importing and importing expensive preparations and large and high-end medical equipment import and export models, high-tech products The proportion of exports is low.

The international market is not sufficiently developed, the information channels are not smooth, and the response to international market information is slow. In particular, there is a lack of awareness and mechanisms for joint development of international markets.

Market environment of the pharmaceutical industry

Development trend of the pharmaceutical industry

Economic impact

Medicine is a high-tech, high-risk, high-input, high-return industry. It has always been the focus of competition in developed countries. With the development of economic globalization, international competition has become increasingly fierce. In order to enhance international competitiveness, multinational corporations have established global production and sales networks and expanded market share through large-scale mergers and acquisitions and international capital market operations. The increasing influence of multinational companies on the world economy has made China's pharmaceutical industry competitors more powerful than ever. The internationalization of the domestic market and the stricter protection of intellectual property rights have made market competition more direct and vital. The worldwide economic restructuring has made developing countries such as India a strong competitor to China.

2. The rapid development of modern biotechnology.

The rapid development of modern biotechnology will have a revolutionary impact on the pharmaceutical industry, deepen the understanding of difficult diseases, the advent of many new biotechnology drugs, and the transformation of traditional industries with biotechnology will greatly change the face of the pharmaceutical industry. Developed countries in the world take advantage of capital, technology, and markets to implement monopolies. Chinese medicine will start a new round of competition with developed countries in the field of biotechnology.

3. Natural medicine boom.

With the rise of the return to nature, the demand for natural medicines in the international market is increasing. The world's plant product sales are nearly US $ 30 billion, of which natural drug sales have reached US $ 16 billion, and are increasing at an annual rate of 10%. To this end, countries are racing to use modern technology to research and develop traditional medicine, and seize the international natural medicine market. This provides an opportunity for China's traditional Chinese medicine to explore the international market.

Pharmaceutical industry market forecast

international market

From 1996 to 1999, the annual growth of the world drug market was approximately 5.5%, and global drug sales in 2000 were approximately US $ 368 billion. Although governments in all countries are controlling the increase in the cost of medicines, the growth of the drug market is still faster than the rate of economic growth due to the development of new drugs, changes in the population structure and the increase in people's health expectations, and it is expected to increase by 8% in the next 5 years. In 2005, it will reach about US $ 540 billion. Statistical analysis shows that the orientation and trend of the development of the international pharmaceutical market in the future can be summarized as the following five:

(1) The population of all developed countries (and a few developing countries) is aging, and the demand for therapeutic drugs suitable for the characteristics of the elderly population is increasing;

(2) Due to the high cost of inpatient medical treatment, new drugs that can shorten the length of stay, especially new drugs that can change inpatient treatment to outpatient treatment, have excellent development prospects. Drugs that can increase bioavailability and ease of taking controlled and sustained release will be further developed;

(3) With the impact of social development and the environment and changes in the disease spectrum, some medical fields still lack efficient and effective drugs, thus providing opportunities for new drug creation;

(4) The development of biotechnology and its extensive application in the medical field will enable many difficult diseases to be effectively treated. It is expected that therapeutic biological drugs, diagnostic reagents and vaccines with genetic engineering as the core will develop rapidly and will gradually expand in the world. Share of the pharmaceutical market;

(5) Generic drugs have steadily increased, and preventive drugs and health-related products will receive more attention.

Domestic market of the pharmaceutical industry

In addition to the international market, China's pharmaceutical market will also be affected and restricted by the following changes in the domestic environment:

(1) The living standards of residents have improved. The per capita annual drug consumption of developed countries such as the United States is about 300 US dollars, and the average per capita drug consumption of middle-developed countries is 40-50 US dollars, while China is less than 10 US dollars. This reflects both the gap between China and developed countries in drug consumption and the development of China's pharmaceutical market potential. With the implementation of the third step of China's modernization strategy, the improvement of people's living standards and quality of life, and the renewal of the concept of pharmaceutical consumption, China's pharmaceutical market will grow faster than the world's pharmaceutical market.

(2) The reform of the medical insurance system has been comprehensively advanced. During the Tenth Five-Year Plan period, the reform of the basic medical insurance system for urban employees in China will be fully launched. The basic principle of this system is "low level and wide coverage." Its implementation, on the one hand, will expand the scope of the medical insurance population, from 160 million to 300 million, on the other hand will adjust unreasonable medical consumption, curb the use of expensive imported drugs and large medical equipment, and promote low prices The use of domestic generic medicines with exact curative effects. The reform of the medical insurance system will generally promote the consumption of pharmaceutical products, thereby driving the growth of the pharmaceutical economy.

(3) The level of urbanization has increased. In 2000, China had a population of 460 million urban people, and it grew at an average annual rate of 2.7%. With the continuous advancement of China's urbanization process, during the "Tenth Five-Year Plan" period, about 10 million urban people will be added each year. The ratio of China's urban per capita drug consumption to rural drug consumption is about 7: 1. The development of urbanization will increase the demand for medical products.

(4) Net population growth. In 2000, China had a population of 1.295 billion. In 2010, China's population reached 1.397 billion. By 2015, China's population will reach 1.33 billion. Net population growth will generate new demand for pharmaceutical products.

(5) Population aging. According to the 2010 census data, China's population aged 60 and over accounted for 13.26%, and the aging process has gradually accelerated. It is expected that the "Twelfth Five-Year Plan" period will continue to grow at a faster rate. During the "Twelfth Five-Year Plan" period, the total amount of drugs used by the elderly will increase significantly.

(6) Implementation of drug classification management system. With the implementation and further improvement of China's prescription and over-the-counter drug system, the retail drug market will further expand, and it is expected that the average annual growth rate during the "Tenth Five-Year Plan" period will be about 15%.

(7) The establishment and improvement of the rural cooperative medical system, the strengthening of the three-level rural health prevention network, and the increase in farmers' income have created room for development of the pharmaceutical market. During the Tenth Five-Year Plan period, rural drug consumption demand is the main growth point of the pharmaceutical market.

Development direction of the pharmaceutical industry

(1) Make full use of the existing asset inventory, strictly control the establishment of new pharmaceutical companies, and guide the concentration of new bioengineering drug varieties to existing enterprises.

(2) Establish a risk investment mechanism, establish a pharmaceutical industry fund as soon as possible, and guide social funds to the modern biotechnology field. Encourage the state-owned economy to increase investment in the modern biotechnology industry in order to occupy the commanding heights of technology and expand control.

(3) Strengthen the information exchange between the Chinese Academy of Sciences, the Academy of Military Medical Sciences, the Chinese Academy of Medical Sciences and relevant biotechnology research institutions and key pharmaceutical companies, and form an effective mechanism conducive to technological innovation and accelerating the industrialization of scientific and technological achievements. Guide enterprises to early involvement in biotechnology application research.

(4) Take effective and effective policies and measures to increase support for scientific research subsidies, discounts on technological reforms, and corporate capital injection into modern biotechnology industrialization projects, and form a group of internationally competitive high-tech enterprises.

(5) Focus on the use of recombinant DNA technology and protoplast fusion technology to build new strains or to transform antibiotics, vitamins, amino acids and other products to produce strains, improve fermentation levels, and reduce consumption. Develop new vaccines, diagnostic reagents and biotechnology drugs that prevent, diagnose and treat malignant tumors, cardiovascular and cerebrovascular diseases, neurological diseases, digestive system diseases, AIDS and immunodeficiency, which seriously threaten human life and health diseases; develop existing biotechnology New dosage forms of products, including coatings, suppositories, aerosols, drops, etc .; genetic engineering technology and cell engineering technology are used to produce endangered and scarce Chinese medicinal materials.

The pharmaceutical industry promotes the modernization of traditional Chinese medicine

Chinese medicine is one of the industries with comparative advantages in China. The increasing demand for entry into the WTO and natural medicine will provide opportunities for Chinese medicine to further develop the international market. However, due to the poor foundation of the traditional Chinese medicine industry, the level of modernization is relatively low; the quality of traditional Chinese medicinal materials is unstable, and some of the traditional Chinese medicines have heavy metal and pesticide residues that exceed the standards; , Affecting the competitiveness of famous traditional Chinese patent medicines in the international market; the quality standard system of traditional Chinese medicine is not perfect, and the control methods and methods are relatively backward. These problems have severely restricted the improvement and development of the technological level of the Chinese medicine industry.

In order to maintain the advantages of Chinese medicine, the main task of the Chinese medicine industry during the Tenth Five-Year Plan period is to actively promote the modernization process of Chinese medicine. Focus on the following tasks:

(1) Correctly handle the relationship between inheritance and innovation, learn from the development experience of international natural medicine, actively adopt modern science and technology to improve quality control indicators and methods, improve the quality and technical standard system, and further integrate with international standards.

(2) Actively promote the process of standardization, industrialization and intensive production of Chinese medicinal materials, establish a quality management standard system for Chinese medicinal materials production, and promote standardized planting of Chinese medicinal materials. Apply advanced cultivation and biotechnology to improve the quality and yield of Chinese medicinal materials. Strengthen the protection of wild medicinal materials and carry out research on wild medicinal varieties, domestication and substitutes. Standardize the cultivation and management of authentic Chinese medicinal materials and realize industrialization. Encourage and support the standardized and commercialized production of Chinese medicine extracts.

(3) Gradually formulate a unified national standard for the preparation of processed pieces. Accelerate the research of Chinese medicine decoction concentrated particles and high-quality decoction pieces, and establish a quality standard system for decoction pieces. Strengthen production management of toxic traditional Chinese medicine pieces.

(4) The production of proprietary Chinese medicines should actively promote the application of advanced extraction, purification and preparation technologies to improve the technical content of the products. Accelerate the application of modern technology in the production of traditional Chinese medicine. Development of new Chinese medicine. Strive to have 2-3 Chinese patent medicines officially enter the international drug market.

(5) Strengthen the technological transformation of key Chinese medicine enterprises. The technological transformation of traditional Chinese medicine enterprises should be market-oriented, pay attention to the existing foundation, and effectively improve the level of Chinese medicine production technology and equipment through independent development and technology introduction.

Pharmaceutical industry development advantages

China's chemical raw materials are quite basic. They are big producers and exporters of chemical raw materials. In 2000, they exported 2.25 billion U.S. dollars, occupying a large share of the world's chemical raw material markets. Has strong competitiveness. Efforts to expand the export of chemical raw materials, especially high value-added products, and actively participate in international market competition are important contents of the pharmaceutical industry's active "going global" strategy. Focus on the following tasks:

(1) Develop chemical raw materials in different levels, while meeting the needs of basic medical drugs, develop products with China's independent intellectual property rights, products that are in short supply at home, and new products with advantages in export. Overcome the situation of relying on the export of a few varieties, such as vitamin C and paracetamol, and develop more high-value-added export varieties.

(2) Overcome the situation of over-reliance on the two major markets of North America and Western Europe, and strive to open up vast international markets such as Eastern Europe, Africa, Asia, and Latin America.

(3) In-depth study of international competitors and support for enterprises to establish independent international marketing networks in accordance with international practices, gradually shifting from supply middlemen to direct supply users. Encourage cooperation and coordination among export enterprises, and strive to establish an effective export product coordination mechanism. Enterprises with the right conditions must actively invest overseas to establish pharmaceutical companies to promote product exports.

(4) Focus on breaking through the key production technologies of bulk bulk drugs, such as fermentation, crystallization, separation, and extraction technologies in the production of -lactams, vitamins, macrolides, amino acids and intermediates. Develop a number of common technologies that are conducive to improving product quality, increasing productivity, saving energy and reducing consumption, and reducing production costs.

(5) Give full play to the role of the old pharmaceutical industrial bases in Shijiazhuang, Shenyang, Shandong, Harbin, and Chongqing, increase the intensity of technological transformation, improve processes, and increase competitiveness. At the same time, it will establish an export base of chemical raw materials in Southeast Zhejiang, develop new products, and improve environmental protection facilities.

(6) Encourage export products to be concentrated in advantageous enterprises.

Through the above measures, a large number of large enterprises with high technical level, large production scale and international market competitiveness will be cultivated. Strive for 2005, the international market share of China's chemical raw material medicines has greatly increased, and China's position as a major producer of chemical raw materials has been further consolidated.

Pros and cons of the pharmaceutical industry

Relationship marketing (with gold) for prescription drugs has two inherent shortcomings:

1. It only reflects the general commodity attributes of drugs, and does not reflect the connotation of products as high value;

2. It only stays at the level of "sales" rather than "marketing", and the competition means is single.

In the gradual and standardized pharmaceutical market where it is difficult to obtain batch numbers and difficult commercial bribery, relationship marketing (with gold) directly leads to good products without good brands. Selling products depends on the fight policy, which brings two serious consequences:

Good products cannot sell for good prices; good products do not last long;

Prescription drugs must take the road of professional academic promotion in order to make the product good, large and long. The vast majority of domestic companies only know the shape of professional academic promotion, but they do nt know the gods. Some companies are not academic and lack the ability to do professional work. .

Development status of the pharmaceutical industry

Looking back on the development of China's pharmaceutical industry over the years, the national pharmaceutical production has been in a continuous, stable and rapid development stage.

In 2005, the pharmaceutical industry realized a cumulative total industrial output value of 445.944 billion yuan, an increase of nearly 100 billion yuan over the previous year and a year-on-year increase of 26.19%; realized industrial added value of 147.517 billion yuan, a year-on-year increase of 17.5%; a new product output value of 62.191 billion yuan, a year-on-year increase 23.58%. The cumulative production of chemical APIs totaled 1.348 million tons, an increase of 36.9% year-on-year, and the production of proprietary Chinese medicines reached 758,900 tons, an increase of 11.6% year-on-year.

In 2006, the pharmaceutical industry realized a cumulative total industrial output value of 553.69 billion yuan, an increase of 18.43% year-on-year; realized a cumulative industrial sales output value of 526.782 billion yuan, a year-on-year increase of 19.41%; completed cumulative export delivery value of 67.059 billion yuan, a year-on-year increase of 25.51%, and continued to maintain Good growth momentum; realized total profits of 41.3 billion yuan, a year-on-year increase of 11.1%.

In the first half of 2007, China's pharmaceutical economic growth accelerated, and the industry's efficiency rebounded significantly. The cumulative total industrial output value of the pharmaceutical industry was 291.32 billion yuan, a year-on-year increase of 21.31%; sales income reached 267.782 billion yuan, a year-on-year increase of 21.75%; total profit reached 23.114 billion yuan, a year-on-year increase of 34.06%.

From January to September 2007, China's pharmaceutical imports and exports totaled US $ 11.993 billion, a year-on-year increase of 14.29%. Among them, total imports were US $ 5.033 billion, an increase of 15.90% year-on-year; total exports were US $ 6.960 billion, an increase of 13.15% year-on-year, and a trade surplus of US $ 1.927 billion.

In order to be able to cope with the complex external environment changes, pharmaceutical companies should pay attention to the government's new trends in the adjustment of medical and health structure and rural medical security. In particular, it is necessary to grasp the six major trends in the development of the pharmaceutical industry. The life cycle will be shortened; the third terminal market will be more active; the pharmaceutical market will be further concentrated, and the polarization of medicine will be more prominent; policy prices will continue;

The pharmaceutical industry is a high-tech industrial group that is highly integrated with multi-disciplinary advanced technologies and methods, and involves national health, social stability and economic development. From 1978 to 2008, after 30 years of reform tide, the Chinese pharmaceutical industry has undergone tremendous changes and changes with each passing day. For 30 years, the growth rate of China's pharmaceutical industry has been higher than the gross domestic product (GDP). From 1978 to 2007, the average annual output value of the pharmaceutical industry increased by 16.8%, becoming one of the fastest growing industries in the national economy.

China already has a relatively solid material base for the pharmaceutical industry. The total output value of the pharmaceutical industry accounts for 2.7% of GDP. The production of vitamin C, penicillin industrial salt, paracetamol and other major APIs ranks first in the world, and the production capacity of preparations ranks first in the world. China's drug exports account for 2% of global drug exports, but the average annual growth rate of China's drug exports has reached more than 20%, and the international average is 16%. At the same time, the status of China's pharmaceutical market has continued to increase, and its share of the world's pharmaceutical market has increased from 0.88% in 1978 to 8.25% in 2008.

On January 21, 2009, the Executive Meeting of the State Council adopted the Opinions on Deepening the Reform of the Medical and Health System and the Implementation Plan for Deepening the Reform of the Medical and Health System in 2009-2011. The new medical reform plan brings opportunities for market expansion, the increase in newly listed products, active demand for pharmaceutical terminals, and a new round of investment boom, which have ensured the rapid growth of China's pharmaceutical industry. In 2009, the added value of China's pharmaceutical industry increased by 14.9%. At the same time, China's pharmaceutical foreign trade generally performed well. The import and export of pharmaceuticals and health products increased against the trend. The total value of imports and exports reached 53.1 billion U.S. dollars, hitting a record high.

In the next 5 years, the focus of the growth of the world drug market will gradually shift from the mainstream markets in Europe and the United States to Asia, Australia, Latin America, and Eastern Europe. China's pharmaceutical industry is still a long-term favored industry. By 2013, China will overtake Japan to become the world's second largest pharmaceutical country, and China will surpass the United States by 2020, becoming the world's largest pharmaceutical country.

It first analyzes the current status of the international and domestic pharmaceutical industry, and then specifically introduces the development of biopharmaceuticals, chemical medicines, and Chinese medicines, and conducts a detailed and comprehensive analysis of industrial statistics of the Chinese pharmaceutical industry. Then it analyzes the operation of the OTC drug market, the domestic rural pharmaceutical market, and the reform of China's healthcare system. Subsequently, the report made an analysis of the operating conditions of key enterprises, an analysis of industry competition patterns, an analysis of corporate development strategies, and an analysis of investment potential for the pharmaceutical industry. Finally, it analyzed the future prospects and development trends of the pharmaceutical industry.