"Eleventh Five-Year Plan": Pharmaceutical giants turned gorgeous and advanced to pharmaceutical powers

Business Club December 31. With the approach of the end of 2010, China's eleventh five-year plan is drawing to a close.

In the past five years, China’s pharmaceutical industry has been committed to ensuring the safety of people’s drug use. While satisfying the growing demand for pharmaceuticals for all people, it has been accelerating the pace of product innovation, increasing industry concentration, enhancing its core competitiveness, and gradually achieving its goal of becoming a pharmaceutical country. Change to a strong pharmaceutical country. During the “Eleventh Five-Year Plan” period, under the guidance of the new medical reform, universal health care, and the development of community medical care policies, the pharmaceutical market has developed rapidly and the availability of universal medical services has increased dramatically. By 2010, China has become the third most promising pharmaceutical emerging market in the world.

Double-increased output value

During the “Eleventh Five-Year Plan” period, the development base of China's pharmaceutical industry was fully consolidated, and production and management levels have improved significantly. At present, there are a total of 7,346 pharmaceutical production enterprises and 13,500 medical device manufacturing enterprises in China, capable of producing 60 formulations of chemical preparations. With more than 4,500 varieties, the formulation capacity ranks among the top in the world; more than 300 types of biological products are produced, including more than 20 kinds of modern bio-engineering medicines; the production includes x-ray tomography imaging devices, nuclear magnetic resonance devices, etc. 47 categories over 3,000 kinds Medical device products.

Estimated figures from the China Pharmaceutical Enterprise Management Association show that between 2006 and 2010, the total output value of China's pharmaceutical industry increased by 2.3 times, the profit growth was nearly 3 times, and the industrial development showed a rapid upward trend. In 2009, the global financial crisis broke out. However, the pharmaceutical industry in China achieved a total industrial output value of more than 1 trillion yuan, a profit of 106.1 billion yuan, and an export delivery value of 10.5 million U.S. dollars. The total output value of the pharmaceutical industry exceeded 1,000 billion yuan for the first time. turn off.

During the "11th Five-Year Plan" period, China's pharmaceutical industry began to fully implement GMP certification. As of the end of 2006, China's total of 7,346 pharmaceutical companies passed GMP certification. After the implementation of GMP, the technological level and product quality of the pharmaceutical industry in China have been comprehensively improved, and the conditions for the transition from a pharmaceutical country to a pharmaceutical country have been met. This has also laid the foundation for the reform of the pharmaceutical and health system.

During the “Eleventh Five-Year Plan” period, the degree of concentration in the pharmaceutical industry in China increased, the productivity of the top 100 companies increased from less than 40% to 42%, and companies with production value exceeding 10 billion yuan appeared.

Rapid market expansion

Affected by such policies as "governance of commercial bribery" and crackdown on "excessive drug prices", China's pharmaceutical industry experienced a brief trough in 2006; after 2008, new medical reform policies were issued and the nation continued to promote universal health care and "new farmers." In response to the “broad coverage” environment, the demand for grass-roots pharmaceutical market has been rapidly released, and the pharmaceutical industry has ushered in an unprecedented development opportunity, and the pharmaceutical market share has rapidly expanded. By 2010, according to information released by IMS, China has become the world's most promising emerging pharmaceutical market. The top 20 multinational pharmaceutical companies in the world have established R&D centers in China and shifted their production focus to China. At the same time, under the situation that China’s grass-roots market share has risen rapidly, multinational companies represented by France’s Sanofi, Novartis, and Merck have begun to enter China’s generic pharmaceutical and OTC markets on a large scale and penetrate the grass-roots market.

Prior to the “Eleventh Five-Year Plan”, China was a country that mainly sold generic drugs. With the implementation of the reform of the medical and health system in China during the “Eleventh Five-Year Plan”, people’s livelihood was concerned and the purchasing power of the people’s medical services was improved. The latest research and development in the world Drugs began to be listed on the market in China, such as Avastin, a new drug for colorectal cancer, and Iressa, an oncology drug.

After the new medical reform, with the increase in the ability to pay at the grass-roots level, the pharmaceutical structure has also undergone profound changes: the gap between the use of drugs in urban and rural areas has narrowed significantly, and the level of drug use by the general public has increased significantly. Taking large infusion as an example, the original plastic bottle and soft tape infusion were mostly used in urban hospitals, and it is now very common to use them in medical institutions under the county and townships.

Increased ability to innovate

The “Eleventh Five-Year Plan” period is the fastest growing and the best period for the pharmaceutical industry in China since the founding of the People's Republic of China. One of its hallmarks is the enhanced product innovation capability, and a number of products have been exported to high-end markets in Europe, the United States, and Japan.

As we all know, Europe, the United States, and Japan are the world's major pharmaceutical markets. The market share of the three countries accounts for more than 80% of the global pharmaceutical market, and the quality standards for imported products are high. Before the "Eleventh Five-Year Plan", although China's pharmaceutical product exports were among the highest in the world in terms of volume and amount, pharmaceutical products were mainly sold to non-mainstream markets such as Africa and Southeast Asia, and their export products were concentrated in raw materials, intermediates, and food additives. There is very little export of preparations.

In 2008, the US FDA set up offices in China and India to specifically audit applications for registration of pharmaceutical products from China and India. According to relevant statistics, as of 2010, 21 preparation products of our country have been registered and certified by the European Union, the United States, and Japan, and several production lines meet the requirements of cGMP. At the same time, the formulation products exported by China have broken the order of the export of the first solid preparations and the export of sterile powder preparations. China's first large-volume product exported to the United States is Shenzhen Lijian's sterile powder injection. At present, the company's annual export volume has reached more than 7 million US dollars.

In addition to Shenzhen Lijian Company, Zhejiang Huahai Pharmaceutical, Hisun Pharmaceutical, Jingxin Pharmaceutical, Dongsun Pharmaceutical, Shanghai Fosun and other companies all have or expanded their registered and certified products in the high-end market during the “11th Five-Year Plan” period. , Formed a dazzling high-end product enterprise cluster.

During the “Eleventh Five-Year Plan” period, the medical research projects included in the national “863” and “973” plans are progressing smoothly. It is expected that in the "Twelfth Five-Year Plan", China will have 25 products with independent intellectual property rights. The "Eleventh Five-Year Plan" has played a role in infusing acceleration and acceleration in the course of pharmaceutical innovation and R&D. Experts in the industry believe that breakthroughs have been made in China's pharmaceutical innovation research and development during the “Eleventh Five-Year Plan” period. On the one hand, the country has benefited from the country’s innovation and research and development to a strategic level. The various organizations are sound, the funds are abundant, and the support is strong; on the other hand, It is the rapid growth of China's pharmaceutical companies, participation in international market competition, and the drive for independent innovation of enterprises. The industry has formed a consensus that innovation determines the core competitiveness. China has unique advantages in R&D personnel and clinical research.

The “World Pharmaceutical Raw Materials/Intermediate China Exhibition” held in Shanghai in July each year has a very tight booth. Exhibitors must book one year in advance to get a booth. This is because "the world's pharmaceutical raw materials look at China" has become the consensus of global pharmaceutical buyers.

According to the public statistics of the China Chamber of Commerce for the Import and Export of Medicines and Health Products, China’s exports of pharmaceutical products in 2006 were close to US$18.95 billion. In the first ten months of 2010, China’s exports of pharmaceutical products had reached US$31.6 billion, and exports throughout the year were expected to exceed US$38 billion. During the "Eleventh Five-Year Plan" period, the average annual compound growth rate of China's pharmaceutical products was as high as 19.5%.

The export of pharmaceutical products in China has not only risen sharply in terms of volume and amount, but has also remained a global leader in some major raw material varieties. Vitamin C, vitamin E, paracetamol, penicillin industrial salt, and saccharin sodium accounted for 65%, 44%, 40%, 60%, and 90% of global market share, respectively. The Chinese quotation for these products has become a “barometer” for the global market.

The export structure of pharmaceutical products in China has undergone profound changes during the “11th Five-Year Plan” period, and export products have gradually extended downstream. Prior to the “Eleventh Five-Year Plan”, the export of penicillin products in China was mainly penicillin salt, and there were still bottlenecks in the manufacture of intermediates, and some intermediates were imported. During the “Eleventh Five-Year Plan” period, Chinese pharmaceutical companies broke through a number of technological bottlenecks through technological advancement. Currently, the penicillin series of intermediates have not only achieved localization, but have also become major suppliers in the global market, and export products continue to extend downstream. .

July 1, 2010, the "pharmaceutical industry water pollution discharge standards" formally implemented. In order to achieve the goal of environmental protection “double control”, during the “Eleventh Five-Year Plan” period, the pharmaceutical industry has made energy-saving and emission-reduction through a number of technological advancements, and has achieved environmental upgrades on the premise of substantially increased production capacity. With a group of companies represented by North China Pharmaceuticals, Xinhua Pharmaceutical, Northeast Pharmaceutical Factory, Harbin Pharmaceutical Group, and Lukang Pharmaceutical, they started with cleaner production and pollution control and invested in environmental protection through capital, manpower, and technology. For example, Lukang Pharmaceutical Group took the lead in introducing US CASS technology for wastewater treatment; Northeast Pharmaceutical Factory used activated carbon fiber membranes to recover toluene/methanol-containing wastewater, and used pervaporation equipment to recover low concentrations of isopropyl alcohol and other organic solvents; North China Pharmaceutical Group applied Dutch high Anaerobic sludge bed treatment technology and Italian multi-effect distillation technology to treat high-salt wastewater; Jiangsu Fuchang Science and Technology Co., Ltd. adopts fuel-free incinerator technology to treat high calorific value high-salt waste liquid; Zhejiang Pharmaceutical's vitamin E was originally in the production process Manganese dioxide is used to produce a lot of waste slag, and the pollution is serious. Through technological breakthroughs, the plant replaces manganese dioxide with a catalyst, thereby realizing the lowest cost and highest quality of vitamin E production in the world, with a share of more than 30% in the global VE market.

At the same time as environmental protection upgrades, according to the requirements of the country's industrial layout, the pharmaceutical industry has also begun a large-scale gradient transfer during the “Eleventh Five-Year Plan” period, making the industrial layout more reasonable. Up to now, in the Pearl River Delta, Yangtze River Delta, and Bohai Rim medical industry clusters, emerging medical industry clusters such as Inner Mongolia, Ningxia, Henan, and Shandong have formed.

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