Export of Western medicine preparations in the first half of the year: the first decline, but the U.S. market is growing rapidly

Source: on August 10, 2016, in the face of complex and changeable international economic environment and increasing downward pressure on domestic economy, the development of China's pharmaceutical foreign trade also encountered great difficulties In the first half of this year, China's pharmaceutical import and export totaled US $49.93 billion, down 0.23% year-on-year, including US $27.3 billion, down 2.93% year-on-year, the first decline over the years Influenced by the cyclical factors of the world economy and the structural adjustment of trade, the trade volume of some major countries has declined sharply, the trade of emerging markets and developing countries has shrunk rapidly, and the price of bulk APIs has continued to decline Western pharmaceutical products, which have been the key factor to promote the growth of Pharmaceutical Foreign Trade, have also declined for the first time Overall situation: the first decline, the overall scale of the same year-on-year, the first half of this year, the total export of Western medicine preparations in China is 1.53 billion US dollars, down 1.2% year-on-year, the scale of the basic and last year's flat The export volume declined briefly, and the general trade growth was up 10.7% year-on-year compared with the first half of 2015 The first half of this year was the first decline of Western medicine preparation over the years This reflects the weakness of foreign demand, the situation of foreign trade in medicine has not fundamentally changed, and the export is still facing great difficulties However, the export volume of general trade increased by 6.5% against the trend, accounting for 55.6% of the total export volume of Western medicine preparations in China, and taking private enterprises as the main force reflected the acceleration of the internationalization layout of Western medicine preparations of local enterprises in China From the perspective of scale, the opening of the first quarter was weak, and the growth rate of January February fell to a large extent, with a year-on-year drop of more than 8% Since March, the export scale has increased month by month, and the decline has gradually narrowed, and turned negative to positive in April, but mainly driven by quantity, and the price drop is still relatively serious In the first half of this year, there were 65 kinds of Western medicine in China After the rapid growth of hormones in the past few years, there has been a decline in both quantity and price, resulting in a sharp drop of 45.8% in exports in the first half of the year, with the most significant decline in insulin drugs and corticosteroids However, after several years of slow growth, penicillin, cephalosporins and other anti infective drugs increased by 17.9%, 23.5% and 7.2% respectively in the first half of the year It is worth mentioning that in the first half of this year, the export of artemisinin drugs increased by a large margin, reaching US $38.49 million, up 21.8% year-on-year, mainly driven by the significant increase in the export of South Guilin drugs, accounting for 56.8% of the total export of artemisinin drugs in China 11 products, such as artesunate, produced by Guilin South pharmaceutical Co., Ltd., have passed the WHO PQ certification After years of continuous investment, they have entered the rapid harvest period The export volume of artemisinin drugs has maintained a growth of more than 50% since 2013 After entering the international public procurement channel in 2014, the orders have increased further At present, artemisinin drugs of Guilin south medicine have covered 39 African countries and 27 Asian countries, and began to expand to South America Regional analysis: the innovation achievements are emerging, the internal and external factors are complex, and the regional performance is different in the first half of the year China exports Western pharmaceutical preparations to 179 countries and regions Africa, Australia, South Korea, ASEAN, EU and the United States are the most important trading partners of China In the first half of the year, China's export of Western pharmaceutical preparations to the United States reached 140 million US dollars, a year-on-year increase of 55.8%, accounting for 9.2% of the total export of Western pharmaceutical preparations There were 13 enterprises exporting more than 1 million US dollars to the United States, including 10 local enterprises, 5 enterprises registered with anda in the United States and realized their own brand sales The performance of enterprises increased significantly, achieving three digit growth The United States has become the market with the largest export growth of Western pharmaceutical preparations In recent years, with the progress of internationalization and the increasing number of drug exports, international buyers are more willing to purchase Chinese drugs More and more enterprises are focusing on the overseas market, increasing innovation, and constantly improving international competitiveness Through continuous R & D investment, and in-depth cooperation with Sandoz and other overseas companies, Hengrui pharmaceutical has listed six pharmaceutical products such as cyclophosphamide in Europe, the United States and Japan, and achieved a significant increase in exports In the first half of this year, Hengrui's export to the United States exceeded 40 million US dollars, with a year-on-year growth rate of 895%, ranking among the largest enterprises in China's export of Western pharmaceutical preparations to the United States In addition, through several years of continuous investment, Huahai pharmaceutical, humanfolk, Sinopharm Europe Italy and dongyangguang have gradually entered the harvest period, and their sales to the United States have achieved breakthrough growth The export of Western pharmaceutical preparations to developed markets such as EU and Australia has declined significantly The EU was the weakest, with exports to the EU down 29.4% in the first half of the year, and major export markets such as the UK, the Netherlands, Belgium, Greece and Denmark saw sharp declines In the first half of this year, the export of Chinese Western medicine preparations to the UK dropped by 17.8%, except for the growth of anti-tumor products to the UK, the business of other major export enterprises to the UK fell sharply The decline of exports to Holland, Belgium, Denmark and other markets is mainly related to AstraZeneca, Xi'an Janssen, Novo Nordisk and other foreign enterprises The export of domestic enterprises to these markets has increased to varying degrees, but the main business is the processing business, and the profit is not high Greece was greatly affected by the follow-up of the debt crisis In the first half of this year, China's exports of Western pharmaceutical preparations to Greece fell by 25.9% Exports to Australia fell 18.9% The export to the country is mainly the re export trade in the bonded area, and is mainly driven by multinational enterprises such as Sanofi, moshadong and Wyeth The market performance in Asia is uneven Asia has always been the most important market for the export of Western pharmaceutical preparations in China, accounting for 41% In the first half of this year, the export volume of Chinese Western medicine to Asia increased by 10.9% year on year, and the average export price fell by 5.5% year on year As far as the main trading partners are concerned, China's exports to South Korea, India and Japan have increased by 29.4%, 5.7% and 11.6% respectively Among them, the exports to South Korea are mainly multinational enterprises and free trade zone entrepot trade; the exports to Japan are mainly driven by some Japanese enterprises; while the exports to India are mainly local enterprises, mainly antibiotic drugs In contrast, many domestic enterprises, such as Ted, Hengrui and Sinopharm, have passed the Japanese PMDA certification, and their exports to Japan are also growing rapidly, but the export volume is relatively small and has not yet formed a scale ASEAN is also an important market for China's pharmaceutical exports Especially since ASEAN implemented "zero tariff" on China's pharmaceutical products, China ASEAN pharmaceutical trade has developed rapidly However, in the first half of this year, the main export markets of Chinese Western pharmaceutical preparations to ASEAN, including Thailand, Malaysia, Indonesia and Singapore, all declined to a large extent, with a year-on-year drop of 21%, 16.5%, 9.8% and 11.9% respectively The main reasons are the decline of warehousing transit trade in the bonded area and the business in MSD The development of the ASEAN market by Chinese enterprises basically shows a trend of rapid growth Some major pharmaceutical enterprises, such as Shandong Ruiyang Pharmaceutical Co., Ltd and Sinopharm, etc., have seen significant growth As far as the major national markets are concerned, the export to Thailand, Malaysia and Singapore is mainly the re export of warehousing area and multinational enterprises, accounting for about 70%; the export to Indonesia is the same as that to local enterprises; the export to Philippines, Vietnam, Myanmar and other countries is mainly local enterprises Africa and South America enjoy steady growth Africa and South America are rich in resources, have a broad market, and have relatively loose regulatory system They have always been the market that Chinese pharmaceutical companies, especially pharmaceutical companies, focus on and strive to explore In the past few years, Africa has once become the largest market for the export of preparations of Chinese local pharmaceutical enterprises, and maintained a double-digit rapid growth However, since 2014, the export growth of Chinese Western medicine preparations to Africa has begun to decline and entered a stable growth period In the first half of this year, China's export of Western pharmaceutical preparations to Africa reached US $230 million, up 9% year on year Nigeria, Mali, Ethiopia, Guinea and Uganda, the main export markets of China to Africa, experienced a sharp decline in the first two years, and saw a significant recovery in the first half of this year, with year-on-year growth of 17.3%, 73.6%, 20.9%, 26.1% and 48.1% respectively In contrast, the export of Chinese Western pharmaceutical preparations to Egypt, South Africa and Angola has declined significantly, which is mainly related to the decline in the price of bulk commodities denominated in US dollars The large fluctuation of bulk commodity prices represented by oil has led to the shortage of foreign exchange reserves and the decline of payment capacity in these markets The local government encourages localized production, thus weakening the import of Western pharmaceutical preparations in China With more and more enterprises participating in the South American government bidding and passing the inspection of local regulatory authorities, the export of Chinese Western pharmaceutical preparations to South America has maintained a relatively stable and rapid growth In the first half of this year, China's exports of Western pharmaceutical preparations to 30 countries in South America reached 120 million US dollars, a year-on-year increase of 6.3%, of which the largest growth was in Peru, Venezuela, Nicaragua, Paraguay and Bolivia, with 56.8%, 441%, 33.7%, 64.3% and 198.7% respectively, all of which were exports by local enterprises Trend line: it is expected to achieve positive growth throughout the year, and it is difficult to get a significant improvement in the second half of the year The global economy is still weak, and there is little possibility of a significant improvement in the world economic situation, which will continue to restrain the growth of Global trade The U.S economy will continue to recover and the generic drug market will continue to expand In the first half of the year, humanwell pharmaceutical acquired epicpharma company, and Huahai and Shiyao successively obtained FDA approval for new products The growth rate of exports to the United States is expected to further increase The economy of the euro area is moving forward slowly The economy of Britain, Germany and France are slightly weak The uncertainty of Greece is still very large The continuous depreciation of the pound and euro will have a negative impact on the export of Chinese Western pharmaceutical preparations to the EU Affected by the decline of commodity prices, tightening of financial conditions, structural bottlenecks and geopolitics, the growth of emerging economies has been restrained, and resource exporting countries such as Africa, South America and the CIS will still face serious political and economic difficulties The Ukrainian issue remains unresolved, and the expansion of conflicts in the Middle East and North Africa will bring a lot of uncertainties to China's export of Western pharmaceutical preparations In a comprehensive consideration, the export of Western medicine preparations is expected to achieve a positive growth in the whole year, but it is difficult to achieve a significant growth in the environment of sustained weak foreign demand, low-speed expansion of the global value chain, structural adjustment of world trade, and tightening domestic and international supervision