In the first half of 2010, the export value of western medicine preparations in China showed a steady increase, and the export value increased by 33.46% year-on-year, covering 157 countries and regions. Local enterprises gradually broke the monopoly of foreign companies over the developed countries' markets.
With the development of the economy, people's income levels have increased, people's health awareness has increased, and the pharmaceutical industry certainly has ample room for development. It is also known as the "forever sunrise industry." At present, the world pharmaceutical landscape is quietly changing. The focus of the international pharmaceutical industry is shifting from Europe and the United States to emerging markets such as Asia and Latin America. How to develop new markets, develop pharmaceutical products suitable for the needs of emerging markets, enhance international competitiveness, and realize the transition from a large raw material exporting country to a major pharmaceutical preparation country are important issues facing the pharmaceutical industry in China.
â– The export is stable and full of stamina
With the rapid growth of the domestic pharmaceutical economy, at present, China has the ability to produce more than 60 types of Western medicine, up to 5,000 varieties, production capacity ranked first in the world. In recent years, the production technology of western medicine preparations in China has developed rapidly. Exports have reached a new level in a year. Exports have increased from 251 million US dollars in 2003 to 1.198 billion US dollars in 2009. In the first half of this year, with the recovery of the global economic situation and the gradual entry into force of the export development policies introduced by China in response to the financial crisis, China’s Western medicines exports maintained a good momentum of growth, with exports amounting to US$697 million, a year-on-year increase of 33.46%. , the growth rate was 20.52% from the second half of 2009; the export volume was 314,900 tons, a year-on-year increase of 34.19%, an increase of 21.43% compared with the second half of 2009; the average export unit price decreased slightly by 0.54% year-on-year; The export is full of stamina.
â– Foreign companies play a decisive role
In the first half of this year, there were as many as 997 enterprises with export performance of western medicine preparations in China, including 148 foreign-invested enterprises, which accounted for about 15% of the total number of western medicine preparation export enterprises in China, but the proportion of exports was as high as 52%, which accounted for about the export of western medicine preparations in China. Half of the country. Among the top ten Western medicine export enterprises, there are four non-Hong Kong-funded foreign-invested enterprises, namely Pfizer, Zhucheng Dongxiao, Tianjin Takeda, and Eli Lilly Pharmaceutical. With their independent intellectual property rights and brand channel advantages, they have become China's Western medicine preparations. The "leader" of exports.
In the first half of this year, the top 20 export enterprises accounted for 44.38% of the total exports of western medicine preparations in China, and the export concentration was relatively high. It is worth noting that in recent years, the ranks of Chinese pharmaceutical companies have been on the rise. Jiangsu Jiangshan Pharmaceutical, Zhejiang Kangle Pharmaceutical, North China Pharmaceutical Group Import and Export Trade Co., Ltd., Shandong New Era Pharmaceuticals and Shiyao Zhongnuo Pharmaceutical (Shijiazhuang) Co., Ltd. Such performance is compelling.
â– The growth of Latin America in Africa is remarkable
In the first half of 2010, China's Western medicines were exported to 157 countries and regions. The market pattern has not changed much in recent years. Asia is still the most important market for the export of western medicines in China, accounting for 51% of China's pharmaceutical exports. The market growth in Africa and Latin America was significant. In the first half of the year, the proportion of exports to the two regions reached 16.3% and 8.7%, respectively, and the year-on-year increases were 26% and 56% respectively. In accordance with the degree of market regulation, in the first half of the year, about 40% of western medicines were exported to 20 developed countries and regions such as South Korea, the United States, and Japan, and about 60% were exported to developing countries such as India, Nigeria, the Philippines, and Brazil. However, a considerable part of Western medicines sold to the developed markets are sold to developing countries through transit trade.
As the economy recovers and companies accelerate the pace of opening up new markets, in the first half of the year, China’s exports to Russia, Peru, Colombia, Mexico, Chile, Guinea, and Cameroon all achieved three-digit growth.
Market exports to developed countries are mainly driven by foreign-funded enterprises. In the first half of the year, the proportion of the top ten trading partners for exports of western medicines in China was as high as 46%. Among them, Korea, as the country's largest exporter of western medicines, exports mainly Pfizer, Shanghai Roche and Tianjin Shiweiya, which accounted for 53% of the total. The main exports to the United States are vitamins and some antibiotics that enter as dietary supplements and food additives. The main exporters are Pfizer, Jiangsu Jiangshan and Zhejiang Kangle Pharmaceuticals. Exports to Japan were mainly driven by three Japanese companies Tianjin Takeda, Qingdao Huazhong, Beijing Taide and Bayer, which accounted for 75% of the total, of which the Takeda family accounted for 52% of exports to Japan. Exports to Africa and South America are almost entirely absorbed by local Chinese companies.
In addition, local Chinese companies are also striving to enter the developed countries in Europe and America. At present, more than 20 pharmaceutical manufacturers have passed the EU and US FDA certification, and gradually break the monopoly of foreign-funded enterprises in the developed markets.
â– Antibiotics are export-oriented products
Overall, China's Western medicines exports are still dominated by antibiotics. In the first half of this year, there were a total of 41 western medicines exported to China, of which penicillins, cephalosporins, streptomycins and other drugs containing antibiotics amounted to US$230 million, accounting for 33% of China’s total exports of western medicines. Followed by pharmaceutical products that are not listed as mixed or non-mixed products, the export value was US$208 million, accounting for 29.85% of the total. Glucose and syrups, vitamins, and hormone drugs also account for a significant proportion, and they are on the rise. In addition, the export of antimalarial agents also has a certain market share, mainly for artemisinin-based drugs and quinine, and the export volume for the first half of the year was 3.163 million US dollars.
â– Important point of view: preparations for export have a long way to go
In recent years, the export of western medicine preparations in China has made considerable progress. However, its dominant position in the international market is still not significant. The dream of realizing the formulation country is still a long way to go.
First of all, China's Western medicine export companies are mixed. In the first half of this year alone, there were nearly 1,000 Western medicine preparation export enterprises in China, many of which were not professional Western medicine preparation companies. They lacked professional transportation and warehousing capabilities and supply chain management experience and were unable to fully ensure the quality of Western medicine preparations. In addition, individual countries and the media have constantly questioned the quality of western medicine preparations in China, and it is particularly important to improve the quality and credibility of the export of western medicine preparations in China.
Second, the international competitiveness is insufficient. Western medicine preparation enterprises in China are mostly small-scale, weak overall strength, lack of R&D investment, and less self-owned brand products. 97% of export products are generic drugs, and their technical content is relatively low. Although some companies have passed European and American certification, they have fewer orders. The varieties of Western medicines that have been successfully marketed in developed countries are even more insignificant.
Third, international marketing capabilities are weak. Many domestic companies mainly focus on the development of the international market for raw material medicines, but they do not pay enough attention to the preparations, and the funds and talents invested are far lower than the domestic market. In addition, it knows little about the drug administration, distribution channels, customer needs, and consumer preferences of the export target market, lacks a clear and clear target group positioning and market development strategy, and has a single marketing model and a severe shortage of marketing teams.
Fourth, vicious competition still exists. Due to the large number of western medicine preparation export enterprises in China, the quality of the products is mixed, and some enterprises have shown short-term economic interests and have competed at low prices for sales, resulting in a decline in quality and a narrowing of profit margins. What's more, individual companies shoddy in order to counterfeit and inflict devastating effects in exporting countries, triggering a quality crisis in China's pharmaceutical exports.
In the end, India’s share of the country’s exports has threatened the export of preparations in China. Due to the lack of global strategic vision, Chinese pharmaceutical companies have difficulties in communicating with foreign pharmaceutical companies and Western regulatory agencies and understanding CGMP in Europe and the United States. India has developed well in this regard. Indian pharmaceutical companies use their language and cultural advantages to export pharmaceutical preparations from China to European and other European markets, and attach great importance to the international marketing of their products and supply chain process management. The understanding of policies and regulations also exceeds that of China. In addition, India has nearly 100 pharmaceutical companies that have passed the US FDA certification and have become the largest country outside the United States through FDA formulation certification. India Lupin, Dr Reddy, Cipla have become the world's leading generic pharmaceutical manufacturers, through the acquisition of SMEs in the world, new factories, and constantly expand the international market, products have covered Europe and the United States, Russia, the Middle East, Africa and Latin America and other regions.
Although facing many challenges, we are still optimistic about the prospects for the development of western medicine preparations in China, and the export of western medicine preparations will also be the long-term goal of the development of foreign trade in medicine in China. First, the global pharmaceutical market continues to grow in size. According to IMS forecast, in the next five years, the global pharmaceutical market capacity will increase by US$300 billion, reaching US$1.1 trillion by 2014, with an average compound annual growth rate of 5% to 8%. Second, the global pharmaceutical landscape has changed and emerging markets are rising. For many years, the world's pharmaceutical market has been mainly concentrated in the United States, Europe, and Japan. These developed countries account for more than 80% of the global pharmaceutical market. However, in recent years, the market share of these countries has shown a declining trend, while emerging markets such as India, Brazil, Russia, Turkey, and China have a strong growth trend. They are expected to grow at a compound annual growth rate of 12% to 15% for the next five years. In 2014, the total growth will be more than 100 billion U.S. dollars, which will provide tremendous opportunities for Chinese companies to produce quality and cheap drugs. Third, Chinese pharmaceutical companies share the feast of patent drugs. In 2008, approximately 20 billion U.S. dollars worth of medicine patents expired globally, and between 2007 and 2015, 77 billion U.S. dollars worth of patented drugs will expire. The global generic drug market is growing at a rate of 10% to 15% per year. The overall speed of development in the pharmaceutical industry. As a big country of generic drugs, the huge market capacity of patented drugs released from the world is undoubtedly a good factor for Chinese pharmaceutical companies. At present, many large-scale pharmaceutical companies have set their long-term strategic goals to change from the advantages of raw material medicines to the advantage of pharmaceutical preparations, and continue to open up new international markets, conduct internationalization attempts to “make products to do more markets†and to vertically integrated medicines. Corporate transformation. Fourth, seize the opportunities of global pharmaceutical outsourcing to Asia, improve the ability to undertake the transfer and absorption of international pharmaceutical industry, and negotiate comprehensive cooperation with raw pharmaceutical companies from foreign companies to obtain large-scale formulation customization contracts. Their own low-cost bulk drugs will also increase their profits, and they may be given the opportunity to authorize copying or first copying, and they can use the partners' marketing channels to enter the international market. Finally, China's pharmaceutical companies can also use government economic diplomacy and other platforms to promote, through participation in the bidding and procurement of Chinese government foreign aid projects, actively adjust the structure of export products, accelerate registration in Africa and other non-developed economies, establish a good brand effect.
To sum up, in the environment of rising raw materials and increasing pressure on RMB appreciation, Chinese medicine preparations in the first half of 2010 have maintained a good momentum of growth. As the global economy continues to recover and the world pharmaceutical landscape shifts, the wheel of “China Pharmaceutical†has entered the fast lane. With the “going out†strategy that we have actively implemented, the situation of Western medicine preparations exports in the future is excellent.
Rongcheng Jingyi Oceanic Technology Company Limited , https://www.jingyifoods.cn