[exclusive] development of pharmaceutical industry in the past 40 years of reform and opening up

Introduction: in the past 40 years of reform and opening up, with the continuous improvement of medical and health conditions in China, the total cost of health in China has been increasing year by year In the early stage of reform and opening up in 1978, the total cost of health care was 11.021 billion yuan, increased to 4634.488 billion yuan in 2016, an increase of more than 420 times; throughout the past 20 years, the total output value of China's pharmaceutical industry increased from 137.1 billion yuan in 1998 to 3239.8 billion yuan in 2016, an increase of about 23.6 times In 2017, the main business income of Pharmaceutical Enterprises above designated size was 2982.6 billion yuan, a year-on-year increase of 12.2%; in 2017, the total profit of Pharmaceutical Enterprises above designated size was 351.97 billion yuan, a year-on-year increase of 16.6%.. Since the reform and opening up 40 years ago, China's GDP has grown rapidly At the beginning of reform and opening up in 1978, China's GDP totaled 367.9 billion yuan, and in 2017, China's GDP exceeded 82 trillion yuan, with an annual growth rate of 6.9% The average annual growth rate from 1978 to 2017 was 9.6%, far higher than that of other major economic powers in the same period In the same period, the average growth rate of US GDP was 2.7%, Canada 2.5%, Britain 2.3%, Japan 2.2%, France 1.9%, Germany 1.8% and Italy 1.4% Despite positive growth, the growth rate was much lower than that of China The change of the total cost of health in the past 40 years of reform and opening up With the continuous improvement of our medical and health conditions, the total cost of health in China has increased year by year In 1978, the total cost of health care in the early stage of reform and opening up was 11.021 billion yuan, which increased to 4634.488 billion yuan in 2016, an increase of about 420 times The proportion of total health expenditure to GDP is 4.17% on average, exceeding 5% for the first time in 2009 and increasing to 6.23% in 2016 Figure 1-1-21978-2016 China's total health expenditure (National Bureau of Statistics) in 2007, China's total health expenditure exceeded trillion yuan for the first time, and achieved rapid growth By 2016, China's total health expenditure had reached 4634.488 billion yuan Table 1-1-11978-2016 China's total health expenditure (data source: National Bureau of Statistics) the total output value of China's pharmaceutical industry in the past 20 years, from 137.1 billion yuan in 1998 to 3239.8 billion yuan in 2016, the growth rate reached its peak in 2007, with a year-on-year growth of 33% Figure 1-1-31998-2016 total output value of pharmaceutical industry (seven sub industries, current price) Note: 1 The seven sub industries are chemical API industry, chemical pharmaceutical industry, biological pharmaceutical industry, medical device industry, health material industry, Chinese patent medicine industry and Chinese herbal medicine decoction piece industry; 2 The data of total output value of the pharmaceutical industry in 1998-2007 came from the white paper of China's drug Safety Supervision issued by the State Council in 2008; 3 The data of total output value of the pharmaceutical industry in 2008-2013 are based on《 China Pharmaceutical Yearbook; 4 2014-2016 total output value data of pharmaceutical industry is sorted out according to public data In 2017, the main business income of Pharmaceutical Enterprises above designated size was 2982.6 billion yuan, an increase of 12.2% year-on-year, 2.3 percentage points higher than that in 2016, returning to double-digit growth The growth of the main business income of the 8 sub industries is shown in the table below, among which the fastest growth is in the processing industry of Chinese herbal pieces and the manufacturing industry of chemical raw materials Table 1-1-22014-2017 data source of main business income (100 million yuan) of pharmaceutical industry molecular industry: compiled according to the analysis of economic operation of pharmaceutical industry issued annually by the sub station of Industrial Coordination Department of national development and Reform Commission and the completion of main economic indicators of pharmaceutical industry issued annually by the consumer goods industry department of Ministry of industry and information technology of the people's Republic of China In 2017, the total profits of Enterprises above Designated Size reached 351.97 billion yuan, an increase of 16.6% year on year, and the growth rate increased by 1.0 percentage points The growth rate of profit is higher than that of main business income, and the overall profit level of the industry has been improved The profit growth of the eight sub industries is shown in the table below The fastest growth is in the bio pharmaceutical manufacturing industry and the chemical pharmaceutical manufacturing industry The industrial development momentum is constantly shifting to high value-added products Table 1-1-32014-2017 total profit of pharmaceutical industry (100 million yuan) data source: according to the analysis of economic operation of pharmaceutical industry issued annually by the sub station of Industrial Coordination Department of national development and Reform Commission and the completion of main economic indicators of pharmaceutical industry issued annually by the Department of consumer goods industry of Ministry of industry and information technology of the people's Republic of China Pharmaceutical related high-tech industries include pharmaceutical manufacturing high-tech industries, chemical manufacturing high-tech industries, Chinese patent medicine manufacturing high-tech industries, biological and biochemical products manufacturing high-tech industries Figure 1-1-4 number of high-tech industrial enterprises (National Bureau of Statistics) the number of high-tech industrial enterprises has changed relatively gently in the past eight years The average annual proportion of pharmaceutical related high-tech industries in the whole high-tech industry is quite large, up to about 40% Pharmaceutical related high-tech industries need high-tech, high input, high knowledge and high compound talents, which is an important part of the development of high-tech industries in China Table 1-1-4 number of high-tech industry enterprises (from the National Bureau of Statistics) China's import and export of medical drugs, the import and export trade of medical products is growing rapidly year by year In the past 20 years, the total volume of import and export of medical products in mainland China has increased from US $1867.01 million in 1997 to US $35699.73 million in 2016, an increase of about 19 times Figure 1-1-5 import and export trade of pharmaceutical products (National Bureau of Statistics) table 1-1-5 import and export trade of pharmaceutical products (National Bureau of Statistics) 1 China's API export in 2017 Enterprise situation: in 2017, there were 11000 enterprises operating API export business in China, an increase of 707 compared with the same period last year The number of entrepreneurs has been growing for four consecutive years, and the increase was mainly contributed by private enterprises As the main force of China's API export, private enterprises have always maintained a strong export vitality In 2017, the total export volume was US $18.036 billion, up 17.72% year on year, accounting for 62%, and the number of entrepreneurs increased by 698 In recent years, the export volume of API of state-owned enterprises has continued to decrease, and in 2017, it increased by US $3.776 billion, up 7.57% year on year, accounting for 1% of the total export volume 3%; the export volume of foreign-funded enterprises also increased by 7.8% year on year, accounting for 25% of the total (from China Chamber of Commerce for the import and export of pharmaceutical and health products) 2 In 2017, the number of enterprises engaged in the import business of APIs increased by 172 to 6469 in 2017 For the first time, the number of private enterprises exceeded that of foreign-funded enterprises, reaching 3076, but the import performance still accounts for only 21% of China's total import volume of APIs, and the import performance of Keyuan Xinhai, Yangzi River and other enterprises is outstanding; 3, 037 foreign-funded enterprises managed 72% of China's total import volume of APIs, up 14.5% year-on-year Pfizer, general electric, Squibb, AstraZeneca, Roche, Bayer, degusse, Merck, Weicai, Servier and other multinational enterprises continue to take the lead in China's API import business (from China Chamber of Commerce for import and export of pharmaceutical and health products) 3 Export of Western pharmaceutical preparations in 2017 In 2017, China's exports to the EU were mainly concentrated in France, Denmark, the UK, Belgium, Germany and Spain, accounting for 80% of China's total exports of preparations to the EU Among them, the exports to Denmark and Belgium were mainly from multinational enterprises in Huawei, while the exports to the UK, Germany and Spain were mainly from local enterprises Although multinational enterprises such as Novo Nordisk and AstraZeneca have contributed a large share to the export of Chinese preparations to the EU, the export of Chinese local enterprises to the EU has also entered a period of rapid growth, especially the growth of agent processing business Among the top 20 enterprises exporting to the European Union, 14 are Chinese enterprises, and 11 have exported more than US $5 million Shenzhen Tiandao, Huahai, Shenzhen Lijian, Guilin Nanyao, Shenzhen Zhijun, Shandong Xinhua and other enterprises have achieved a significant increase in their exports to the European Union (from China Chamber of Commerce for the import and export of pharmaceutical and health products) 4 In 2017, Germany, France, Italy, Sweden and the United Kingdom were the most important sources of imports of Chinese pharmaceutical preparations, accounting for 60% of the total imports of pharmaceutical preparations In addition to a small increase of 8% of imports from Italy, imports from other markets have achieved a substantial increase of more than 20% Influenced by the expansion of the domestic market and the implementation of the two vote system, some major import agents, such as Yongyu pharmaceutical, Keyuan Xinhai, Sinopharm holding, international pharmaceutical distribution center of the comprehensive insurance zone (Beijing), Shanghai Waigaoqiao, Shenzhen kangzhe, etc., have also achieved significant growth (from China Chamber of Commerce for the import and export of medical and health products) 5 In 2017, the export of traditional Chinese medicine reached US $3.64 billion, an increase of 2.07% year on year The main reason for the decrease in the growth rate of traditional Chinese medicine export is that the market of ASEAN, the United States and the European Union maintained growth, with the growth rate of 17.19%, 8.94% and 5.34% respectively, the export to Japan increased by 0.81%, while the export to Hong Kong and South Korea decreased by 12.54% and 9.8% respectively (from China Chamber of Commerce for the import and export of healthcare products) this paper comes from the forthcoming book "big data of China's pharmaceutical research and development in 40 years" PS: if there are any mistakes or omissions, please correct and discuss them in the message area at the end of the article.