Market Analysis： Chinese Pharmaceutical Industry - 2019
Overview of China’s Pharmaceutical Industry in the First Half of 2019
China has recently published several policies regarding medicine reform, and major measures being implemented within in the first three quarters of 2018 include: “Technical Guideline on Receiving Overseas Clinical Testing Data” issued by NMPA, for speeding up connection between domestic drug market and international market; “Notice on Soliciting the List of Urgently Needed New Overseas Clinical Drug” issued by Center for Drug Evaluation, NMPA, for accelerating the approval process of imported overseas drugs with excellent efficacy and urgently needed drugs for Chinese market; “Generic Drug Procurement with Quantity Demand” is another important policy which is issued by National Healthcare Security Administration. These new policies are implemented to ensure and improve the quality and efficacy of drugs, encourage innovation, lower drug prices and reform the supply-side structure.
These favorable policies that encourage innovation have already produced outstanding outcomes. For example, Hengrui Medicine achieved major breakthroughs on innovation and now is entering a fast growing track. Chiatai Tianqing is a leading Generic-Origin pharmaceutical company in China, which boasts strong R&D capacity and sales network. CSPC Pharma maintains strong growth in terms of innovative drugs, and has a strong pipeline of new products under R&D. Kelun Industry Group has increased its R&D inputs on infusion, antibiotic and innovation, and the company’s revenue had increased significantly in 2018.
However, stringent environmental protection related policies and complex international market situations also have negative impacts on API production.
2018 Q1-Q3 YoY Output of Major Categories
|Item||Prominent Categories||YoY Output Growth (%)||YoY Export Supply Growth (%)|
|1||Total of 24 Categories||-7.8||-1.97|
|3||Antipyretic & analgesics drugs||-9.78||-2.13|
|5||Family planning and hormones drugs||25.03||20.16|
|7||Cardiovascular system drugs||-21.87||1.74|
|8||Respiratory system drugs||6.11||-32.07|
|9||Central nervous system drugs||-3.28||-6.21|
|10||Digestive system drugs||18.19||-11.05|
|11||Urinary system drugs||-17.66||-11.26|
|12||Blood system drugs||-29.85||8.3|
Drugs for regulating water/electrolyte
According to the data, during the first three quarters of 2018, the total output of 24 major categories of APIs decreased by 7.8% YoY. This output decline mainly comes from anti-infection drugs, antipyretic drugs, enzyme, other biochemical drugs and nutrition supplement, caused by environmental projection related output control and supply-demand adjustment. The export volume of API in the first three quarters of 2018 dropped by 2% YoY. Compared with 0.27% decrease in the first quarter of 2018 and 1.76% increase in the first half year, China’s API export is moving in a slightly volatile pattern throughout 2018.
In 1-3 quarters of 2018, the unweighted average of 5 major chemical preparations dropped by 7.7% YoY, with negative growth recorded for injection powder (include freeze-dried injection powder), injection, infusion, tablet and capsule (exclude sustained-release and controlled-release). In all quarters of 2018, only sustained-release and controlled-released tablet and capsule maintain positive growth in output, up 15% YoY, which means China’s medical preparation sector is moving towards development with high quality and efficiency as well as precise efficacy.
Source: Market Analysis on China Pharmaceutical Industry