Expectation on Pharmaceuticals
Year:2010 ISSUE:10
COLUMN:EDITORS NOTE
Click:336    DateTime:Nov.02,2010
Expectation on Pharmaceuticals   

Industrial insiders project recently that China's pharmaceutical industry will enjoy a 27% growth in profit this year. With the increasing governmental input and the widening coverage of medical healthy insurance fund, the domestic pharmaceutical market is expected to go brisk. Problems may arise in exports and overcapacity. Chinese pharmaceutical makers are warned to manage challenges in capacity surplus and exports difficulties.
    A margin surging sector can certainly attract more investors. Among chemical related sectors, the pharmaceutical sector may lead all others in growth. So, China has more than 150 listed pharmaceutical companies, the most among chemical related sectors. And Chemical Abstracts Service (CAS) reported on November 23rd, 2009 that China's patent office is now the world's leading producer of patent invention applications in chemistry with much of that growth taking place in the pharmaceutical sector. The increasing governmental expenditure this year is predicted to add by RMB74 billion in the drug consumption from 2009. Therefore the production value in the pharmaceutical sector will grow 25%, and remain 20% annual growth till 2013. CPhI, June 2nd-4th in Shanghai, may show the sector's conditions.
    From July 1st, China's pharmaceutical makers will abide by the Discharging Standards of Waste Water for the Pharmaceutical Manufacture Industry, facing high cost pressure due to the stricter environmental protection requirements.  
   

Zhong Weike
May 17th, 2010