Industry elimination intensified! These pharmaceutical companies are in danger

[market analysis of pharmaceutical network] in recent years, under the combination of various policies, both pharmaceutical manufacturers and circulation enterprises are facing very huge pressure of profit decline According to industry data statistics, by the end of April 2019, the number of Enterprises above Designated Size in China's pharmaceutical industry has reached 7290, including 1416 loss making enterprises From January to April 2019, the total loss of the pharmaceutical industry was 6.19 billion yuan, up 9.8% year on year There are many well-known pharmaceutical companies in China whose performance has declined What are the reasons for this? Some pharmaceutical companies are not performing as expected in the growing pharmaceutical industry First, policy changes have led to a decline in corporate profits Some insiders believe that the decline of performance of some pharmaceutical enterprises is mainly due to the fact that many pharmaceutical enterprises fail to keep up with the policy changes of the country, fail to realize the transformation and upgrading in time, and adjust the business direction, leading to the decline of profits It is understood that with the further promotion of the two ticket system, the gray space in the circulation link is gradually reduced, and the sales expenses of many drugs are transferred from dealers to producers, and the sales expenses of producers are increased Under the promotion of consistency evaluation policy and quantity purchase policy, the purchase price of drugs is far lower than the original market price, which can not be ignored And in the long run, those products that cannot pass the consistency evaluation will eventually be eliminated by the market And with more and more varieties and enterprises passing the consistency evaluation, the competition will be more and more fierce, which leads to that only those enterprises with strong cost control ability, enough production capacity and continuous reform and innovation can go better and further in the future The number of small and medium-sized pharmaceutical enterprises with weak strength will continue to decline, and the pharmaceutical market is likely to focus on large enterprises in the future 2 The prices of APIs and the costs of pharmaceutical enterprises have increased In recent years, the prices of many APIs have increased dozens of times compared with those of the previous years, and some of the soaring prices are even more exaggerated Behind the rise in the price of API, on the one hand, due to the impact of environmental protection and high pressure, the output cannot be guaranteed; on the other hand, due to the single API supplier, it is easy to form a monopoly situation Some insiders said that in recent years, the relevant departments of the state continue to pay close attention to environmental problems When producing drugs, there will be substances that affect environmental protection, so the production of APIs of enterprises has a great impact, and the annual income of APIs is also decreasing The reduction of API production directly affects the overall performance of the enterprise, and also affects the production of the main API as the main formula Because of the decrease in the production of APIs, the supply of those drugs is often cut off It also includes some antibiotic agents, which originally accounted for a high proportion in the enterprise The reduction of production will inevitably affect the overall performance Third, Chinese medicine has been greatly affected Since this year, Chinese patent medicine enterprises in China have faced enormous policy pressure The net profit of 67 Chinese medicine listed companies was 19.6 billion yuan, an increase of 2% year-on-year; the net profit of deducting non attributable parent company was 15.883 billion yuan, a decrease of 9.7% year-on-year With the deepening and implementation of medical insurance control, clinical rational drug use, key drug monitoring and other policies, the market of traditional Chinese medicine injection has shown a downward trend According to relevant data, more than 90% of the 1400 traditional Chinese medicine injections were eliminated due to historical and clinical reasons, and only 134 were left In 2018, the market sales of traditional Chinese medicine injection fell below 100 billion yuan, showing a negative growth With the continuous promotion of various policies, the market of Chinese patent medicines will be restructured For those Chinese patent medicines without clear indications and treatment mechanism, the market may fall precipitously But for some pharmaceutical companies whose sales volume of Chinese patent medicine accounts for the majority of their performance, it will cause a considerable blow IV challenges in the domestic and international environment: from 2013 to 2015, the domestic pharmaceutical environment changed dramatically, and the growth rate of the pharmaceutical industry decreased in two consecutive ways, and in 2015, it fell below 10% for many years For the Chinese pharmaceutical enterprises, which maintain rapid growth, they must start to look at the world, try to export preparations and seek new strategic development space However, in the process of integrating with the international market, pharmaceutical enterprises are also facing challenges At present, pharmaceutical companies in Europe, America and India have occupied a leading position, and their advantages are hard to shake in the short term However, domestic pharmaceutical enterprises are relatively slow in the process of international certification and registration, and their ability to obtain market access is still insufficient At present, Huahai pharmaceutical, which is well internationalized, has only 48 anda approvals Compared with hundreds of Anda approvals of Indian generic pharmaceutical enterprises, it is not a hierarchical one In addition to domestic pharmaceutical companies want to layout overseas, foreign pharmaceutical companies do not want to miss China, the world's second largest pharmaceutical consumer market With the increasing reform of Chinese medicine in recent years, multinational pharmaceutical enterprises are facing great pressure Therefore, Lilly, Novartis, GlaxoSmithKline and other foreign funded pharmaceutical enterprises have begun to make strategic adjustments to adapt to the development of the Chinese market Recently, a subsidiary of Novartis Group signed a transfer agreement with Jiuzhou Pharmaceutical Co., Ltd to transfer 100% equity of Suzhou Novartis after divestiture of technology and drug development assets Industry insiders believe that multinational enterprises choose to sell assets for strategic adjustment, which will better focus on innovative drug research and development, and seize the Chinese market At present, the competition in the pharmaceutical industry is becoming increasingly fierce, and the enterprises with single and highly homogeneous products may have less and less profit opportunities in the future, which is relatively easier to be eliminated It can be seen that, with the increasingly fierce competition in the pharmaceutical industry, the era when pharmaceutical enterprises want to take medicine has passed If pharmaceutical enterprises want to improve their competitiveness, they must update the drugs in a timely manner, and the marketing mode must constantly change.