China is a big pharmaceutical country, but it is not yet a pharmaceutical powerhouse. Under the circumstances that the threshold for new drug research and development is rising and patent protection is becoming increasingly perfect, China's drug manufacturers must face such a reality: to adapt to international rules, and to increase Strive to research and develop new drugs with independent intellectual property rights, otherwise it will be eliminated.
From the perspective of production capacity, China’s pharmaceutical production capacity is very strong: the formulation processing capacity is the first in the world; the production of bulk drugs is the second largest in the world and accounts for 25% of the volume of the international API market; the output of several types of chemical drugs, especially antibiotics and vitamins C ranks first in the world. However, in the area of ​​R&D, China urgently needs to raise its level. Among the major drugs that dominate the international western medicine market, there is almost no patented product in China. The lack of independent intellectual property rights in the production of drugs and the phenomenon of product convergence are serious. A generic drug can be produced by dozens of companies at the same time, exacerbating market chaos and insufficient funds. The vicious circle of low rates of innovation and innovation. According to Wang Xiaoliang, director of the Institute of Materia Medica, Chinese Academy of Medical Sciences, it is difficult for China's new drugs to produce "shells". The fundamental reason lies in the sequelae of disconnection between scientific research, production, and the market during the planned economy, which has seriously affected the improvement of corporate R&D. Developed drug R&D in developed countries adopts a market-oriented model, where basic research, development research, industrialization, and marketization are linked and enterprise-led. China, on the other hand, is borne by research institutes and pharmaceutical companies. Scientific research units are engaged in basic research and certain development research. The company has almost no basic research and only engages in part of development research and industrialization. This division of labor, which lasted for more than 50 years, has prevented companies from laying the foundation for independent research and development.
The pharmaceutical industry is said to have high risk, high input, and high returns. It is said that large multinational pharmaceutical companies generally use 10% to 20% of profits for research and development. Pfizer, a multinational pharmaceutical giant, invests more than US$5 billion in research and development every year, and AstraZeneca’s research and development costs are as high as US$14 million per working day. The investment in R&D in the entire pharmaceutical industry in China has only been about 1% of total sales for many years. Advertising costs can reach 5% to 10% of sales, which is due to the unreasonable distribution system of medicines and the high cost of drug sales. related. In foreign countries, more than 80% of pharmaceutical sales can be returned to production companies, providing sufficient financial support for further research and development. In China, only a small portion of product sales can be returned to production companies, and some are only 10% to 20%. Companies spend a lot on market development, which is often higher than research and development costs.
Experts believe that the independent innovation of the pharmaceutical industry must realize the transformation of the enterprise as the main body. Enterprises should work closely with scientific research units to use scientific and technological advantages of scientific research units to join the market-oriented management of enterprises; establish independent research and development teams with scientific research strength. . At the same time, it is also important to stimulate the enthusiasm of companies to engage in the development of innovative drugs and purify the pharmaceutical market environment. The current lack of research and development of new drug companies has a lot to do with the market environment. Some good products produced by regular manufacturers, after many years of research and development, have good curative effect, do not cut corners and cut corners, but the production cost is relatively high and the market competitiveness is poor. Enterprises can only put a lot of energy and money on marketing. Only the market is purifying, competition is fair, and R&D can be valued by companies. Some experts predict that if 10% of the national retail sales of drugs are used for the development of new drugs, annual sales will be 200 billion yuan. Pharmaceutical companies will invest 20 billion yuan each year in the development of new drugs. This figure is more than 10 times that of the state. . In this way, our company's development of "bombshell" new drugs with annual sales of more than one billion US dollars is just around the corner.
From the perspective of production capacity, China’s pharmaceutical production capacity is very strong: the formulation processing capacity is the first in the world; the production of bulk drugs is the second largest in the world and accounts for 25% of the volume of the international API market; the output of several types of chemical drugs, especially antibiotics and vitamins C ranks first in the world. However, in the area of ​​R&D, China urgently needs to raise its level. Among the major drugs that dominate the international western medicine market, there is almost no patented product in China. The lack of independent intellectual property rights in the production of drugs and the phenomenon of product convergence are serious. A generic drug can be produced by dozens of companies at the same time, exacerbating market chaos and insufficient funds. The vicious circle of low rates of innovation and innovation. According to Wang Xiaoliang, director of the Institute of Materia Medica, Chinese Academy of Medical Sciences, it is difficult for China's new drugs to produce "shells". The fundamental reason lies in the sequelae of disconnection between scientific research, production, and the market during the planned economy, which has seriously affected the improvement of corporate R&D. Developed drug R&D in developed countries adopts a market-oriented model, where basic research, development research, industrialization, and marketization are linked and enterprise-led. China, on the other hand, is borne by research institutes and pharmaceutical companies. Scientific research units are engaged in basic research and certain development research. The company has almost no basic research and only engages in part of development research and industrialization. This division of labor, which lasted for more than 50 years, has prevented companies from laying the foundation for independent research and development.
The pharmaceutical industry is said to have high risk, high input, and high returns. It is said that large multinational pharmaceutical companies generally use 10% to 20% of profits for research and development. Pfizer, a multinational pharmaceutical giant, invests more than US$5 billion in research and development every year, and AstraZeneca’s research and development costs are as high as US$14 million per working day. The investment in R&D in the entire pharmaceutical industry in China has only been about 1% of total sales for many years. Advertising costs can reach 5% to 10% of sales, which is due to the unreasonable distribution system of medicines and the high cost of drug sales. related. In foreign countries, more than 80% of pharmaceutical sales can be returned to production companies, providing sufficient financial support for further research and development. In China, only a small portion of product sales can be returned to production companies, and some are only 10% to 20%. Companies spend a lot on market development, which is often higher than research and development costs.
Experts believe that the independent innovation of the pharmaceutical industry must realize the transformation of the enterprise as the main body. Enterprises should work closely with scientific research units to use scientific and technological advantages of scientific research units to join the market-oriented management of enterprises; establish independent research and development teams with scientific research strength. . At the same time, it is also important to stimulate the enthusiasm of companies to engage in the development of innovative drugs and purify the pharmaceutical market environment. The current lack of research and development of new drug companies has a lot to do with the market environment. Some good products produced by regular manufacturers, after many years of research and development, have good curative effect, do not cut corners and cut corners, but the production cost is relatively high and the market competitiveness is poor. Enterprises can only put a lot of energy and money on marketing. Only the market is purifying, competition is fair, and R&D can be valued by companies. Some experts predict that if 10% of the national retail sales of drugs are used for the development of new drugs, annual sales will be 200 billion yuan. Pharmaceutical companies will invest 20 billion yuan each year in the development of new drugs. This figure is more than 10 times that of the state. . In this way, our company's development of "bombshell" new drugs with annual sales of more than one billion US dollars is just around the corner.
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