An analysis report issued by the National Bureau of Economic Development of the National Development and Reform Commission today believes that the continued rise in the economic returns of the pharmaceutical industry in China is still difficult due to the adverse effects of high raw material prices and the continued decline in the prices of drugs.
The Bureau of Economic Affairs surveyed the economic performance of the pharmaceutical industry in the first quarter and found that due to the continued rise in prices of some energy and raw materials, the cost of pharmaceutical production continued to rise, but the prices of pharmaceutical products continued to decline. The main reason is that, on the one hand, government drug pricing tends to decline overall. At the same time, this year's centralized bidding and procurement of drugs will mainly use the bidding mode of online bidding to harmonize drug procurement platforms in all provinces, and it will also be dominated by low prices.
At present, the problem of homogenization of the pharmaceutical market is serious. During the investigation, relevant parties of the National Development and Reform Commission found that in order to solve the new production capacity, most companies will use “imitation†as a shortcut for “low investment and short cycleâ€, resulting in a large number of same-type production enterprises. In order to compete for market resources, medical circulation is full of unfair competition such as the manufacture and sale of counterfeit drugs, the distribution of false advertisements for drugs, and commercial bribery, and the order is chaotic.
In addition, the independent innovation capability of China's pharmaceutical products is relatively weak. It mainly relies on low-cost international competition. However, due to the continuous increase in the appreciation of the renminbi, the pressure on the export of bulk APIs and intermediates with low added value continues to increase. The Economic Operations Bureau believes that the top priority is to continue to adjust the product structure and accelerate the export of preparations.
The Bureau of Economic Affairs surveyed the economic performance of the pharmaceutical industry in the first quarter and found that due to the continued rise in prices of some energy and raw materials, the cost of pharmaceutical production continued to rise, but the prices of pharmaceutical products continued to decline. The main reason is that, on the one hand, government drug pricing tends to decline overall. At the same time, this year's centralized bidding and procurement of drugs will mainly use the bidding mode of online bidding to harmonize drug procurement platforms in all provinces, and it will also be dominated by low prices.
At present, the problem of homogenization of the pharmaceutical market is serious. During the investigation, relevant parties of the National Development and Reform Commission found that in order to solve the new production capacity, most companies will use “imitation†as a shortcut for “low investment and short cycleâ€, resulting in a large number of same-type production enterprises. In order to compete for market resources, medical circulation is full of unfair competition such as the manufacture and sale of counterfeit drugs, the distribution of false advertisements for drugs, and commercial bribery, and the order is chaotic.
In addition, the independent innovation capability of China's pharmaceutical products is relatively weak. It mainly relies on low-cost international competition. However, due to the continuous increase in the appreciation of the renminbi, the pressure on the export of bulk APIs and intermediates with low added value continues to increase. The Economic Operations Bureau believes that the top priority is to continue to adjust the product structure and accelerate the export of preparations.
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