Chinese Government Determined to Solve the Problems of China's Pharmaceutical Industry; Many Challenges and Opportunities Ahead
Dublin--(Business Wire)--Research and Markets
(http://www.researchandmarkets.com/reports/c78597) has announced the
addition of China Chemical Pharmaceutical Industry Report, 2007 to
their offering.
The global medicine industry maintains rapid growth. It has
maintained fast growth since the middle of 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
double 3.5%, which is the growth rate of global DGP in the same
period. With the further increase of R&D costs for new medicine, it is
estimated that the development of companies involved in new medicines
will slow down, to a rate far slower than the growth pace of generic
drug companies, since the patent of a large number of important
medicines will end. In addition, all governments are cutting the
expense of hygiene. Moreover, due to the further increase of
environment protection and cost pressure in developed regions, we see
a trend towards raw material drug production transferring to China,
India etc, bringing opportunities for raw material drug companies in
China.
The development of China's pharmaceutical industry is faster than
the world average level, and it has maintained 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 retain the fast growth due to
the rapid growth of China's macro economy, improvement of
urbanization, as well as an increasingly aging population. Currently,
pharmaceutical companies in China are small and plentiful and with
fierce competition.
The medical reform makes the medicine industry in China step into
a healthier development track. China's 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 aim is to promote
medical hygiene system reform, medical guarantee 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 without 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 a
healthier development track.
The medicine industry in China has a huge market potential, and
medical system reform will release the market demand. Currently, the
chemical preparations industry in China cannot compete with
transnational pharmaceutical giants to develop new patent drugs. The
rapid expansion of the generic drug market will bring opportunities
for China's chemical preparation companies, so it is a good choice to
develop the generic drug. There's a trend for the international
medicine market to transfer chemical raw material drug production,
since China and India have become the best places on the grounds of
the lower production costs. Now, it is very important for raw material
drug companies in China to seize this favorable historic opportunity.
For more information visit
http://www.researchandmarkets.com/reports/c78597
Research and Markets
Laura Wood
Senior Manager
Fax: +353 1 4100 980
press@researchandmarkets.com
Copyright Business Wire 2008
