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China's pharmaceutical production and customization business prospects

   

We believe that the current international pharmaceutical industry is facing a large number of patented pharmaceutical products, new drug development and output investment than the deteriorating, government-oriented and competition continue to depress the drug price, generic drug competition between the growing number of unfavorable factors. Large-scale research and pharmaceutical companies in order to prevent the rapid decline in profits will increase the intensity of the upstream industry, generic enterprises in the face of intensified market competition will continue to shift production. And because the original research and pharmaceutical companies will be more involved in the transfer of the industry, the mode of cooperation will be more stable, profits will be more assured; China's outstanding enterprises will be expected in this tide with continuous optimization of quality, Production control systems and competitive cost advantages.

The original research drug factory pressure to increase production efforts to increase: from 2006 to 2012, is expected to more than 90 billion US dollars of patented drugs will lose patent protection, the original drug research plant corresponding product revenue will be due to generic competition and a substantial decline; New drug development costs continue to improve, more stringent review conditions, the new drug difficult to become the original research drug industry profits pillar; the same time the United States and Europe in order to reduce public medical expenses, continue to reduce drug prices, to encourage generic drug companies to challenge patents. The above changes will lead to the original research plant profits under great pressure to reduce costs to become an important response to the measures; third-party market research results also show that in recent years more original drug factory is willing to carry out CMO business in Asia.

Generic drug transfer business will continue to grow: the scale of production of generic drug companies is expected to continue to expand: on the one hand due to a large number of patented drug over the protection period, the overall market size of patented drugs will be significantly expanded, the corresponding scale of outsourcing production will expand ; On the other hand, generic drug market competition is also becoming fierce, in order to maintain profits, generic pharmaceutical companies will continue to maintain the transfer of production to low-cost countries.

China will be a good partner for Big Pharma: India's technology accumulation and cost advantage in the field of fine chemicals has been a major area for the transfer of international APIs and generic drugs. But in the original research and pharmaceutical companies to increase the intensity of the transfer of the background, we believe that China will rely on its continuous improvement of the production management system, cheap base of raw materials supply, excellent technical digestion and less competitive threat to become the original drug plant more For the right partner.

Custom production model for the current domestic enterprise development: Although the independent intellectual property rights have become the development of pharmaceutical companies in China's pharmaceutical industry development direction, but a huge R & D and marketing investment so many companies discouraged. The cooperation with the international original research and pharmaceutical companies is a sustained and stable business model, you can ensure that cooperative enterprises to obtain higher profits, resulting in a stable cash flow income, but also can effectively support domestic enterprises R & D investment, is a high growth, Long-term benefit of the business model.

Based on the judgment of industry trends, we believe that Hai Zheng Pharmaceutical, Huahai Pharmaceutical in the field of APIs and preparations have a strong technical reserves, will benefit from the pharmaceutical industry, the transfer of production, while the company's generic stock reserves are also expected to help Some of the small and medium enterprises in Jiangsu and Zhejiang is also expected to rely on excellent technical digestion in cooperation with the international large pharmaceutical companies to benefit from the proposed positive attention; Beijing new pharmaceutical industry has not yet involved in industrial transfer, we will Keep track of.

Risk factors: competition from India intensified, domestic enterprises received orders lower than expected.

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Taixing Joxin Bio-tec Co., Ltd.

Add : No.88, chengdong industrial park, taixing, jiangsu China.  Zip : 225400

General Manager: Yao Hengjun  Mobile : +86-13615177555

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