Analysis on the Export Situation of Western Medicine Preparations in China in the First Half of 2010

Business News Agency, August 23th Asian market is still the top spot in Latin America. Latin America's growth is significant. Market exports to developed countries are mainly driven by foreign companies that are still export-oriented products.

With the rapid development of China's pharmaceutical economy, China has the ability to produce more than 60 types of Western medicine, up to 5,000 varieties, production capacity ranked first in the world. In recent years, the production technology of western medicine preparations in China has developed rapidly. Exports have reached a new level for a year. Exports have increased from 251 million US dollars in 2003 to 1.198 billion US dollars in 2009. In the first half of this year, with the recovery of the global economic situation and the gradual entry into force of the export development policies introduced by China in response to the international financial crisis, Western medicines exports maintained a good momentum of growth, with exports reaching US$697 million, an increase of 33.46% year-on-year. , the ring increased by 20.52% in the second half of 2009; the export volume was 314,900 tons, a year-on-year increase of 34.19%, an increase of 21.43% compared to the second half of 2009; the average export unit price decreased slightly by 0.54% year-on-year. The export of preparations is generally in a stable state with a rising price, and exports are full of stamina.

Foreign-funded enterprises have a high degree of export concentration

In the first half of this year, there were as many as 997 enterprises with export performance of western medicine preparations in China. Among them, there are 148 foreign-invested enterprises, accounting for about 15% of the total number of Western medicine manufacturers, but the proportion of exports is as high as 52%, which accounts for about half of the exports of western medicine preparations in China. Among the top ten Western medicine export enterprises, there are four non-Hong Kong-funded foreign-invested companies, namely Pfizer, Zhucheng Dongxiao, Tianjin Wutian and Lilly Suzhou Pharmaceutical. With their independent intellectual property rights and brand channel advantages, they have become China's Western medicine exports "leader".

In the first half of this year, the top 20 export companies accounted for 44.38% of China's total exports of Western medicine preparations, and the export concentration was relatively high. It is worth noting that in recent years, the ranking of local pharmaceutical companies in China has been on the rise. Jiangsu Jiangshan Pharmaceutical, Zhejiang Kangle Pharmaceutical, North China Pharmaceutical Group Import and Export Trade Co., Ltd., Shandong New Era Pharmaceuticals and Shiyao Zhongnuo Pharmaceutical (Shijiazhuang) The performance of the company's limited companies, etc., is compelling.

The Asian market is still the top spot in Latin America.

In the first half of 2010, my western medicine preparations were exported to 157 countries and regions, with little change in market structure. Asia is still the most important market for the export of western medicine preparations, accounting for 51% of my formulation's exports. The market growth in Africa and Latin America was significant. In the first half of the year, the proportion of exports to these two regions reached 16.3% and 8.7%, respectively, which represented an increase of 26% and 56% year-on-year respectively. In accordance with the degree of market regulation, in the first half of this year, approximately 40% of China’s western pharmaceutical preparations were exported to 20 developed countries and regions such as South Korea, the United States, and Japan, and approximately 60% were exported to developing countries such as India, Nigeria, the Philippines, and Brazil. However, a considerable part of western medicines sold to the developed markets are sold to developing countries through transit trade. With the economic recovery and the acceleration of the pace of developing new markets, in the first half of this year, China’s exports to Russia, Peru, Colombia, Mexico, Chile, Guinea, and Cameroon all achieved three-digit growth.

Market exports to developed countries are mainly driven by foreign companies

Exports to the markets of developed countries are mainly driven by foreign-funded enterprises. In the first half of this year, the proportion of the top ten trading partners in Western medicines exports was as high as 46%. Among them, South Korea, as my largest exporter of Western medicine, exports mainly to Pfizer, Shanghai Roche and Tianjin Schweitzer, accounting for 53% of the total. Exports to the United States are mainly vitamins and some antibiotics that are imported as dietary supplements and food additives. The major exporters are Pfizer, Jiangsu Jiangshan and Zhejiang Kangle Pharmaceuticals. Exports to Japan are mainly driven by three Japanese companies, Tianjin Takeda, Qingdao Huazhong, Beijing Ted, and Germany's Bayer, accounting for 75% of the total, of which the Takeda family accounts for 52% of exports to Japan. Exports to Africa and South America are almost entirely absorbed by local Chinese companies. Of course, domestic companies in China are also working hard to develop markets in Europe and the United States. At present, more than 20 pharmaceutical companies have passed the EU and US FDA certifications, and gradually broke the monopoly of foreign-funded enterprises in developed countries.

Antibiotics are still export-oriented products

Overall, I still rely on antibiotics for the export of western medicines. In the first half of this year, there were a total of 41 western medicines exported to the outside world, of which penicillins, cephalosporins, streptomycins, and other drugs containing antibiotics amounted to US$230 million, accounting for 33% of the total exports of western medicines. Followed by pharmaceutical products that are not listed as mixed or non-mixed products, the export value was US$208 million, accounting for 29.85% of the total. Glucose and syrups, vitamins, and hormone drugs also account for a significant proportion, and they are on the rise. In addition, the export of antimalarial agents also has a certain market share, mainly for artemisinin-based drugs and quinine, and the export volume for the first half of the year was 3.163 million US dollars.

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