Wide range of drug procurement coverage, the pharmaceutical market landscape will be reshaped

Wide range of drug procurement coverage, the pharmaceutical market landscape will be reshaped
Over the past decade, China’s pharmaceutical manufacturing value-added has grown at an average rate of 13%, which is a fast growth rate for the global pharmaceutical market. However, since 2018, China’s overall economic growth has slowed and the Chinese government has clamped down on the country’s pharmaceutical industry, resulting in a slowdown in the growth of China’s pharmaceutical manufacturing industry and a shift from fast to refined pharmaceuticals in China.
Focusing on new drug development in China, China’s innovative drug indications are mainly focused on oncology, which is the same as the overall global trend. Since the reform of China’s drug review and approval system in 2015, China’s pharmaceutical innovation policy environment has significantly improved, which has greatly enriched China’s biopharmaceutical investment channels and rapidly pushed up the capital market’s investment enthusiasm in China’s biopharmaceutical.
In terms of the structure of pharmaceutical industry and clinical demand, there is still huge room for development in the Chinese pharmaceutical market. The gap between China’s new drug R&D (both the speed and quality of drug R&D) and the world is gradually narrowing, and Chinese pharmaceutical companies deserve more attention in the future, especially the leading pharmaceutical companies that participate in global competition. These companies are anchored in international positioning and will lead the international development and innovation breakthrough of Chinese biopharmaceuticals in the future. At the same time, foreign pharmaceutical companies continue to introduce new drugs into the Chinese pharmaceutical companies continue to introduce new drugs into the Chinese pharmaceutical market, which will be conductive to the accelerated innovation and upgrading of the Chinese pharmaceutical industry while competition intensifies. The next five years will be full of opportunities and challenges for Chinese API and formulation companies.
Overall, with the deepening of China's healthcare reform, accelerated iteration of new drug R&D, the return of overseas professionals and sufficient capital support, China's pharmaceutical industry will continue to upgrade in the next five years. On the one hand, Chinese pharmaceutical suppliers have superb channel advantages in response to the clinical needs of the Chinese pharmaceutical market, and Chinese pharmaceutical companies with integrated supply chain and cost control capabilities will rapidly increase their market share through the introduction of pharmaceutical products and domestic drug substitution, and there will be more and more tens of billions of pharmaceutical companies in China in the future; on the other hand, Chinese innovative pharmaceutical companies will move from simple generic innovation to selected high-quality innovation On the other hand, Chinese innovative drug companies will move from simple generic innovation to selected quality innovation 2.0, seeking innovative drugs with real clinical value in the gradually improving Chinese biopharmaceutical R&D ecology. At a time when competition in the international pharmaceutical market is intensifying, returning to the origin of drug innovation and promoting differentiated innovation oriented to clinical value is the main theme for the development of China's pharmaceutical industry. With the support and guidance of governmental departments, the development of innovative drugs in China will definitely take a new step and the pattern of the pharmaceutical market will be reshaped.