The pharmaceutical industry is an important part of the national economy. It is closely related to the vital interests of the people and the quality of life. It is a hot spot of the whole society and an important part of building a harmonious socialist society. Since the reform and opening up, China's pharmaceutical industry has maintained a relatively fast growth rate, the output value of the pharmaceutical industry has continued to expand, and the quality and efficiency of economic operations have continued to increase.

At present, China has become one of the world's largest producers and exporters of chemical raw materials, and is also the world's largest producer of pharmaceutical preparations. China has become the world's largest producer of vaccine products. Domestic vaccines have begun to provide vaccine products to the World Health Organization for disease prevention in other countries while meeting the needs of domestic residents for disease prevention and treatment.

Since 2011, the high pressure of domestic policies has made the pharmaceutical market weak, medical reforms are difficult, drug prices are difficult to control, drug procurement is concentrated in bidding, and regulatory policies are common; new GMP implementation, new GSP revision; industrial and commercial integration in depth adjustment, merger and reorganization accelerated, Terminal murders and so on have not yet been completed, and the pharmaceutical industry is advancing in a complex and ever-changing environment. However, whether it is a policy factor or a market role, the general trend of the pharmaceutical industry entering the "Golden Decade" will not change.

Pharmaceutical industry development prospects

The pharmaceutical industry is one of the important components of China's national economy. It has the characteristics of high input, high output, high risk and high technology intensiveness, and has strong technical barriers. At the same time, the pharmaceutical industry is a combination of traditional industries and modern industries, and one, two and three industries as one. The pharmaceutical industry plays an important role in protecting and improving people's health and improving the quality of life for family planning, disaster relief and epidemic prevention, military readiness, and promotion of economic development and social progress.

Since 2016, China's pharmaceutical industry policies have been frequent. The State Council, the State Health Planning Commission, the State Food and Drug Administration and other departments have successively promulgated a number of policies and regulations, consistency evaluation, drug listing permit holder system, and drug clinical trial data verification. Such policies accelerate the survival of the fittest in the industry; medical, medical insurance, and pharmaceutical linkages accelerate medical reform; the industry pattern will accelerate reshaping, the Chinese medicine policy will be promulgated, and the Chinese medicine culture will be promoted. Driven by the reform of medical policy, the development of China's pharmaceutical industry is entering the fast lane of regulation.

Benefiting from the strengthening of residents' health awareness, the obvious trend of population aging and the innovation and development of medical science and technology, the pharmaceutical industry is expected to maintain sustained growth in the next few years. Prospective Industry Research Institute predicts that by 2023, China's pharmaceutical market will exceed 4,500 billion yuan.

Forecast of China's pharmaceutical industry development prospects in 2018-2023 (unit: 100 million yuan)

Source: Prospective Industry Research Institute

Pharmaceutical industry development trend forecast

The pharmaceutical industry is a key development area of "Made in China 2025". Under the unprecedented attention of the country to the pharmaceutical industry, the pharmaceutical industry's industry status continues to improve. At the same time, pharmaceutical products are closely related to people's healthy lives. In the future, with the increasing population base in China, the problem of population aging, the urbanization process is accelerating, people pay more attention to health care and the national medical and health system. With the continuous deepening of reforms, the sales revenue and profits of China's pharmaceutical industry will continue to maintain a high growth trend.

China is the world's largest population, and huge consumer groups provide a good foundation for the development of China's pharmaceutical industry. Not only that, China's aging process has been accelerating, providing sufficient momentum for the further development of the pharmaceutical industry. The World Bank's ranking of the proportion of people aged 65 and over shows that in more than 200 countries and economies around the world, China ranked 75th in 1960 and ranked 60th in 2015. Therefore, China’s population is ageing faster than the international average. In addition, the proportion of the population aged 65 and over rose from 5% to 10%, the most aging Japan used 35 years, the second most severe Italy used at least 100 years, and China only used only 30 years.

In addition, deepening the reform of the medical and health system requires the gradual establishment of a public health service system, medical service system, medical security system and drug supply security system covering urban and rural residents, forming a four-in-one basic medical and health system to provide safe, effective and convenient for the masses. And cheap medical and health services, which will further expand consumer demand and improve the level of drug use, bringing opportunities for the development of China's pharmaceutical industry.

Overall, the development of China's pharmaceutical industry faces a more favorable domestic environment. The market demand is growing rapidly, the state's support for the pharmaceutical industry is increasing, and the quality standards system and management norms are continuously improved, which is conducive to the steady and rapid development of the pharmaceutical industry.