Four highlights of China’s pharmaceutical economic operation in 2022

Four highlights of China’s pharmaceutical economic operation in 2022
 
China's pharmaceutical economy rebounded more sharply in 2021 after a downturn in the impact of last year's epidemic. The International Monetary Fund IMF forecasts China's GDP growth rate of 8% in 2021. Pharmaceutical manufacturing business revenue growth rate is steady to slow. Data from China's National Bureau of Statistics show that from January to October 2021, China's pharmaceutical and pharmaceutical industry revenue was 235.298 billion yuan, up 22.8% year-on-year, and total profit from pharmaceutical manufacturing reached 76.7% year-on-year.
 
This increase is gratifying, but there are also concerns behind it. The main driver of the high growth is the slippage in hospital sales affected by the epidemic in 2020, and the normalization of epidemic prevention and control this year, hospitals are running back to normal, so chemical preparations, Chinese medicine and biological products have all rebounded sharply. Although the medical device industry is still growing at a high rate this year, the quarter-on-quarter growth rate has fallen back and gradually returned to a normal state. Overall 2021 pharmaceutical economic operation continues to recover, the growth rate showed a steady slowdown.
 
2022 has passed most of the year, when we look forward to and analyze the operation of the pharmaceutical economy in 2022, the author believes that there are four main highlights. 

First, China's innovative drugs accelerate internationalization
On the one hand, Chinese pharmaceutical companies' R&D has become an international force; on the other hand, China's State Drug Administration has been re-elected as a member of the ICH Management Committee and China's drug regulation has accelerated internationalization, making it possible for Chinese innovative drugs to enter the world and achieve simultaneous R&D.
Secondly, the breakthrough exploration in the era of micro-profit of generic drugs
After many rounds of centralized procurement, generic drugs have entered the era of micro-profit, and the internationalization of generic drugs is a topic that must be considered. Although it is still a difficult road to take, generic drugs must reconstruct a new ecosystem to break through the dilemma.
Third, the continued development of the urban community healthcare market
Data show that from January to October 2021, online prescription drug sales were 15.711 billion yuan, up 201.9% year-on-year. The fourth terminal, or urban community medical market, is bound to become an important terminal for drug sales in China.
Fourth, prevention and control products serve the world
In 2022, China will continue to contribute to the global cause of prevention and control, and the export volume of related products and materials will reach a new high
 
Although there are many bright spots in the development of China’s pharmaceutical economy in recent years, 2022 will also enter a period of adjustment, and there are three major pressures on the pharmaceutical industry’s transformation and adjustment.

The first major pressure is subject to policy factors terminal growth stall, the second major pressure is the ebb of investment fever, capital for pharmaceutical innovation is a great boost, science and technology innovation board after the opening of the board, China’s pharmaceutical innovation has made great progress, but behind this there is a financing bubble to push the wave, as the capital to rational, high premium financing began to ebb. The third major pressure is the price increase of raw materials. In recent years, as innovative drugs are continuously pushed to the market, as well as the tilt of medical insurance to innovative drugs, the market share of innovative drugs has increased greatly, but generic drugs still occupy 68% of China’s market share. After the introduction of the centralized procurement policy, the price of generic drugs has been adjusted downward while the price of API has been rising. The price increase of API has bought considerable pressure on the whole industry, especially generic companies.