Source: Nanfang Daily reporter Yan Huifang 2023-03-03
Three years after the epidemic, the pharmaceutical economy has entered a period of adjustment, but the development resilience is still there.
Three years after the epidemic, the pharmaceutical economy has entered a period of adjustment, but the resilience of development is still there. “It is expected that in 2023, China’s pharmaceutical economy will open a new process of high-quality development of growth rebound, under the premise of stable recovery of economic fundamentals, the operating income of China’s pharmaceutical manufacturing industry is forecast to increase by 8.9% in 2023 (statistical caliber does not include devices); It is forecast that the sales of the drug terminal market will reach 2,306.2 billion yuan, an increase of 9.1 percent over 2022.” Recently, at the 34th National Pharmaceutical Economic Information Conference held in Hengqin, Zhuhai, Lin Jianning, secretary of the Party Committee of the Southern Institute of Pharmaceutical Economics of the State Food and Drug Administration, reviewed the operation of China’s pharmaceutical economy in the past three years and issued a new forecast for the pharmaceutical manufacturing industry in 2023.
In Lin Jianning’s view, the past three years have entered the adjustment period, raw material prices, terminal stall, and capital ebb, but under the challenge, the transformation and upgrading of the pharmaceutical economy has not stopped.
From the perspective of enterprise structure, the proportion of operating income of China’s pharmaceutical industry production enterprises above 10 billion has increased from 13.7% in 2016 to 20%, and the proportion of profit has increased from 12.9% to about 18%; Among them, the concentration of the top ten pharmaceutical companies has exceeded 16%, and the head enterprises have grown steadily in the crisis, and the first matrix of driving the tough growth of medicine has been formed.
According to the data disclosed by the “Fortune 500”, the scale ratio of the leading pharmaceutical enterprises in China and the United States (taking the first place in various fields as an example) has increased from 1:23 ten years ago to 1:3 today, and the scale ratio of the leading pharmaceutical circulation enterprises in China and the United States has increased from 1:8.4 ten years ago to 1:2.4 today. The scale of Chinese and American drug retail chain leading enterprises has increased from 1:188 ten years ago to 1:80 today, and Chinese pharmaceutical mainstream enterprises have become the vanguard of realizing the dream of pharmaceutical power.
From the perspective of regional pattern, China has formed a cluster pattern with urban clusters such as the Yangtze River Delta, the Bohai Sea Rim and the Guangdong-Hong Kong-Macao Greater Bay Area as the core, and the coordinated distribution of characteristic industrial parks as the characteristics. In particular, the Guangdong-Hong Kong-Macao Greater Bay Area is constantly improving the pattern of pharmaceutical equipment manufacturing, will create a world-class Chinese medicine production base and innovation highland, and become the flagship of Chinese medicine to go international.
“Compared with 2019-2022, although the growth rate in individual years has entered the trough, the total size of the pharmaceutical economy has risen steadily, and the subsequent growth is resilient; Enterprise structure and regional layout upgrade, intensification trend has appeared; Terminal business changes, drug demand will not shrink; Innovation investment is increasing, the head force is going all out to catch up with the international front row, China is already a pharmaceutical power, is moving towards’ big and strong, big and excellent ‘high-quality development transformation. In this context, the Southern Institute is more optimistic about the rebound of the pharmaceutical economy in 2023.” Lin Jianning said.
At the same time as the forecast was released, Lin Jianning also commented on the dynamic new track of China’s pharmaceutical economy in 2023:
The first is the fourth terminal continuous volume. It is expected that in 2023, the fourth terminal pharmaceutical sales are expected to exceed 350 billion yuan, an increase of about 23%. However, the change of online sales format is faster than offline, such as the recent emergence of OTC live drug sales has attracted the attention of the industry, how to regulate the dissemination of drug information in the network era, new marketing models have also triggered new thinking.
Second, the integration of medicine and equipment has developed rapidly. International pharmaceutical giants are already involved in digital therapeutics and have digital therapeutics-related businesses in more than 22 disease segments.
Third, CDMO maintains a high market prosperity, and the professional division of domestic drug innovation will be more detailed.
The fourth is a revolution in drug discovery efficiency fueled by artificial intelligence (AI). The recent explosion of ChatGPT has made the application scenario of AI+ medicine further attract capital attention. Domestic AI technology application, mainly in the drug research and development stage, referring to the previous international popular statistical caliber, AI predicted clinical trial success accuracy of about 87%, so that drug discovery time shortened by 40%, so that drug clinical trial time saved at least 50%. In Lin Jianning’s view, AI will change the world in the future and will inevitably reshape the medical ecology.
Mr Lin concluded: “Signs of recovery are emerging and policies are encouraging investment. The potential of the new track is released, the attraction of the pharmaceutical industry for capital return is long-term optimistic, the heat of pharmaceutical innovation investment is expected to pick up, and investment will become a major driving force for the new growth of the pharmaceutical economy. “The accelerated launch of new drugs, collective collection and price reduction have promoted the public’s access to drugs, the awareness of comprehensive health care after the epidemic has been strengthened, the international influence of traditional Chinese medicine has expanded, and the upgrading of pharmaceutical consumer demand is also good for boosting recovery.”
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Wisdom Drugs Co., LTD., founded in September 2011, is headquartered in Changzhou Hang Seng Science and Technology Industrial Park. Today, the company’s R&D center is engaged in the process research and development, production, optimization, custom synthesis and technology transfer of API or pharmaceutical intermediates, plant extracts, compounds from laboratory scale to commercial scaleup production, to meet the growing requirements of customers.
Wisdom drugs attaches great importance to research and development and technology investment, and has established long-term strategic cooperation with domestic and foreign science academies, and has a branch in India. The team has developed and cooperated with related preparation projects, and difficult, small market volume, high value-added products, and in strict accordance with the international GMP standard management, products are exported to Europe, America, India, Southeast Asia, the Middle East and South America and other markets. At the same time, the company pays attention to the protection of intellectual property rights, constantly invents and innovates research and development of production processes, circumvent patent and intellectual property problems in the regulatory market, perfect impurity research, and provide customers with a full set of CMC or DMF registration documents.
The company adheres to the business philosophy of honesty, quality service, mutual benefit and win-win, the company culture of enthusiasm, openness and sharing, and embraces the guidance and common promotion of domestic and foreign counterparts.
