The year 2006 was a grim year for the pharmaceutical industry in China, faced with major adjustments and strict monitoring of national policies, low prices of leading product prices, rising prices of raw materials, continued price reductions by the state's products, and continuous appreciation of the renminbi, and many other unfavorable factors. However, the industry as a whole still achieved good results. Relevant experts predict that in 2007 the state's supervision of the pharmaceutical industry will be further strengthened, drug policy price cuts will continue, foreign companies' involvement will be deepened, and the market situation will become more severe; multinational companies will accelerate the implementation of the globalization strategy, making national medicine development more difficult.
According to the analysis of experts, the main factors affecting the market situation of the pharmaceutical industry in 2007:
First, raw material prices remain high. The prices of raw materials and power for coal, electricity, oil, transportation, water, steam, and agricultural products have been stubbornly high, and a considerable portion of these prices have risen in 2007, causing the rising cost of pharmaceutical production and plaguing the development of the pharmaceutical industry. .
The second is that the price of pharmaceutical preparations is inevitable. In 2007, the National Development and Reform Commission will further adjust the drug prices. The 21st National Drug Reform Policy of the National Development and Reform Commission, which has long been in the industry, is about to be introduced. The price adjustment mainly focused on cardio-cerebral vascular and endocrine drugs, and was still mainly price cuts, with an average decrease of 21%, of which the average decline of patented drugs was 10%, the average decline of the original research drug was 16%, and the maximum reduction of some products even reached 80%-90%. In the future, the National Development and Reform Commission will adjust the drug prices once every two years. For pharmaceutical companies, this is undoubtedly worse.
Third, investment in environmental protection has increased and profitability has decreased. The chemical raw material medicine industry is a high-energy-consuming and highly polluting industry. With the country’s increasing efforts in environmental protection supervision, the investment of pharmaceutical companies in environmental protection governance has increased year by year, which has increased the product cost of enterprises and reduced the profitability of enterprises. It is also one of the main reasons for the reduction or even loss of profits of pharmaceutical manufacturing companies.
Fourth, multinational companies have accelerated the implementation of the globalization strategy, making it even more difficult for the national pharmaceutical industry to develop. From the perspective of the operation of the world's pharmaceutical economy, multinational corporations have accelerated the implementation of the globalization strategy. The hot spot for competition is the Chinese market with strong development potential. The impact on the Chinese pharmaceutical market is that while multinational corporations increase investment in China, foreign-owned enterprises will become dominant, and the market share of foreign-funded enterprises will increase. Meanwhile, multinational corporations will also move their R&D centers to China, making patented pharmaceutical production and The acceleration of the process of localization of scientific research will have some impact on domestic pharmaceutical companies and will also promote the restructuring of the domestic pharmaceutical industry.
The "Eleventh Five-Year Plan" is an important period for the development of China's pharmaceutical industry. Experts suggest that the development plan for the pharmaceutical industry should be implemented as soon as possible, and related supporting policies for pharmaceutical development should be accelerated to lay a solid foundation for coordinated and sustainable development of the pharmaceutical industry in the "Eleventh Five-Year Plan" period. . At the same time, the pharmaceutical industry should make full use of four favorable factors.
First of all, in 2007, with the reform of the national medical system, the country will introduce a new medical reform program. The government will increase health investment and solve the problem of income compensation for medical institutions. While the National Development and Reform Commission will reduce the price of drugs, the medical insurance catalog will also be expanded and adjusted. This provides unprecedented opportunities for corporate marketing.
Second, with the further implementation of state-supported enterprise independent innovation policies, the enthusiasm of independent innovation of enterprises will be even higher. The pharmaceutical innovation system that combines enterprise-centered, scientific research institutes, market-oriented, product-centered, production, study and research will be gradually established. The new products developed by the company will surely drive the growth of the pharmaceutical economy in 2007.
Third, with the rapid economic development, the prices of various raw and auxiliary materials, such as coal, electricity, oil, transportation, water, steam, and agricultural products, and the price of power for the pharmaceutical industry have remained high, and energy management has been further strengthened. Comprehensive utilization of resources will become the first choice for companies to practice hard. The company will formulate measures, define goals, and rely on technological progress to save energy and reduce consumption. By saving energy and reducing consumption and reducing product costs in an effort to increase profits, a new situation will emerge in 2007.
Fourth, in 2007, we will continue to accelerate the pace of international certification, which provides a strong guarantee for pharmaceutical companies' products to enter the international market and earn foreign exchange through exports. In 2007, the export of the pharmaceutical industry will continue to grow, which will bring better economic benefits.
According to the analysis of experts, the main factors affecting the market situation of the pharmaceutical industry in 2007:
First, raw material prices remain high. The prices of raw materials and power for coal, electricity, oil, transportation, water, steam, and agricultural products have been stubbornly high, and a considerable portion of these prices have risen in 2007, causing the rising cost of pharmaceutical production and plaguing the development of the pharmaceutical industry. .
The second is that the price of pharmaceutical preparations is inevitable. In 2007, the National Development and Reform Commission will further adjust the drug prices. The 21st National Drug Reform Policy of the National Development and Reform Commission, which has long been in the industry, is about to be introduced. The price adjustment mainly focused on cardio-cerebral vascular and endocrine drugs, and was still mainly price cuts, with an average decrease of 21%, of which the average decline of patented drugs was 10%, the average decline of the original research drug was 16%, and the maximum reduction of some products even reached 80%-90%. In the future, the National Development and Reform Commission will adjust the drug prices once every two years. For pharmaceutical companies, this is undoubtedly worse.
Third, investment in environmental protection has increased and profitability has decreased. The chemical raw material medicine industry is a high-energy-consuming and highly polluting industry. With the country’s increasing efforts in environmental protection supervision, the investment of pharmaceutical companies in environmental protection governance has increased year by year, which has increased the product cost of enterprises and reduced the profitability of enterprises. It is also one of the main reasons for the reduction or even loss of profits of pharmaceutical manufacturing companies.
Fourth, multinational companies have accelerated the implementation of the globalization strategy, making it even more difficult for the national pharmaceutical industry to develop. From the perspective of the operation of the world's pharmaceutical economy, multinational corporations have accelerated the implementation of the globalization strategy. The hot spot for competition is the Chinese market with strong development potential. The impact on the Chinese pharmaceutical market is that while multinational corporations increase investment in China, foreign-owned enterprises will become dominant, and the market share of foreign-funded enterprises will increase. Meanwhile, multinational corporations will also move their R&D centers to China, making patented pharmaceutical production and The acceleration of the process of localization of scientific research will have some impact on domestic pharmaceutical companies and will also promote the restructuring of the domestic pharmaceutical industry.
The "Eleventh Five-Year Plan" is an important period for the development of China's pharmaceutical industry. Experts suggest that the development plan for the pharmaceutical industry should be implemented as soon as possible, and related supporting policies for pharmaceutical development should be accelerated to lay a solid foundation for coordinated and sustainable development of the pharmaceutical industry in the "Eleventh Five-Year Plan" period. . At the same time, the pharmaceutical industry should make full use of four favorable factors.
First of all, in 2007, with the reform of the national medical system, the country will introduce a new medical reform program. The government will increase health investment and solve the problem of income compensation for medical institutions. While the National Development and Reform Commission will reduce the price of drugs, the medical insurance catalog will also be expanded and adjusted. This provides unprecedented opportunities for corporate marketing.
Second, with the further implementation of state-supported enterprise independent innovation policies, the enthusiasm of independent innovation of enterprises will be even higher. The pharmaceutical innovation system that combines enterprise-centered, scientific research institutes, market-oriented, product-centered, production, study and research will be gradually established. The new products developed by the company will surely drive the growth of the pharmaceutical economy in 2007.
Third, with the rapid economic development, the prices of various raw and auxiliary materials, such as coal, electricity, oil, transportation, water, steam, and agricultural products, and the price of power for the pharmaceutical industry have remained high, and energy management has been further strengthened. Comprehensive utilization of resources will become the first choice for companies to practice hard. The company will formulate measures, define goals, and rely on technological progress to save energy and reduce consumption. By saving energy and reducing consumption and reducing product costs in an effort to increase profits, a new situation will emerge in 2007.
Fourth, in 2007, we will continue to accelerate the pace of international certification, which provides a strong guarantee for pharmaceutical companies' products to enter the international market and earn foreign exchange through exports. In 2007, the export of the pharmaceutical industry will continue to grow, which will bring better economic benefits.
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