According to the Economic Observer Network reported, recently, the State Information Center, China Economic Information Network released the "2019 Pharmaceutical Industry Development Report - Outlook: strict control of fees, drug prices, innovative drugs, high-quality generic drugs will stand out," the report believes that generic drugs will accelerate the replacement of original drugs, high-quality generic drug companies will benefit.
on the one hand, it is an objective need for the development of China's pharmaceutical industry to realize generic drug replacement. According to the analysis of the Report, the economic development, population growth, the increasing aging of society and the increasing public health awareness have kept China's pharmaceutical industry growing at a high rate. At the same time, the pressure on health care is too great, the government advocates further health care fees, the proportion of generic drug use to control the cost of health care continues to increase the dependence, which has created a huge opportunity for the long-term development of China's generic industry.
the other hand, the realization of generic drug replacement of the original research drug is the development of China's pharmaceutical industry subjective requirements. Since 2010, the overall success rate of innovative drug research and development worldwide has gradually decreased, and the difficulty of innovative drug research and development has become more and more important. As more and more drugs face patent failure in recent years, more varieties of generic drugs will be launched in the global and Chinese drug markets.
According to estimates by the China Pharmaceutical Industry Information Center, China's patent expired original research drug market size reached 141.9 billion yuan, accounting for about 14.23 percent of the overall size of chemical and biological drugs, by 2025 China will have 48 imported chemical drug varieties core patents due. The expiration of patented drugs will provide huge market space for China's generic drug market, which is expected to reach about 1411.6 billion yuan by 2020. Therefore, the report recommends that investors pay attention to high-quality generic companies, such as Colum Pharmaceuticals, China Biopharmaceuticals and so on. (Securities Times)