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    Home > Active Ingredient News > Drugs Articles > The market competition in my country's biopharmaceutical industry presents three major characteristics

    The market competition in my country's biopharmaceutical industry presents three major characteristics

    • Last Update: 2017-04-20
    • Source: Internet
    • Author: User
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    Source: China Investment Consulting Network April 20, 2017 [Huicong pharmaceutical industry network] the pharmaceutical industry belongs to the concept of large manufacturing industry According to analysis, with the upsurge of merger and acquisition among major transnational pharmaceutical groups in the international market, the domestic biomedical industry will usher in the climax of merger and reorganization In addition, the introduction of GMP and the trend of drug price reduction will accelerate the elimination of small pharmaceutical enterprises, and it is expected that the industry concentration will increase rapidly 1 With the acceleration of merger and reorganization, the industrial concentration has increased in China's pharmaceutical industry There are many enterprises, good and bad, low industrial concentration, and serious product homogeneity In order to improve the unreasonable structure of the current pharmaceutical industry, the government has begun to promote cross regional business merger to rectify the market environment and improve the supply structure On the other hand, under the potential competitive pressure of international pharmaceutical companies to increase their investment in China, domestic pharmaceutical companies have a strong incentive to optimize the allocation of resources through merger and reorganization to improve their competitiveness When foreign pharmaceutical enterprises enter the Chinese market, they will also actively consider the use of acquisition and merger and other means of low-cost expansion, which will play a certain role in promoting domestic acquisition and merger 2 Before the transition from manufacturing competition to R & D competition and marketing competition, the competition between enterprises mainly focused on production competition At present, in the value chain of the pharmaceutical industry, the main value-added link has gradually shifted from production to R & D and marketing, accompanied by the shift of the focus of competition among pharmaceutical enterprises In this case, many enterprises with long-term development vision have increased their investment in R & D and sales network construction to improve the difficulty of competitors' imitation and obtain unique competitive advantages The capacity of the pharmaceutical market will grow rapidly, but the speed of new drug listing in China will slow down, the cost of drug imitation will increase significantly, the difficulty of new drug approval will increase, and the advantages of brand and new drug variety will become more and more obvious In such a change of market pattern, the order of competition has gradually improved, the industry reshuffle has continued to accelerate, and the market has quickly concentrated on pharmaceutical enterprises with R & D and brand advantages 3 The situation of assets reorganization in biopharmaceutical industry is rising The situation of assets reorganization in biopharmaceutical industry in China is rising The main reasons are as follows: first of all, the state's policies to promote the development of biopharmaceutical industry encourage to increase the investment portfolio and form the overall competitive advantage of the whole industry Due to the financing difficulties, the lack of funds has seriously restricted the development of China's biopharmaceutical industry The state is promoting the M & A and restructuring of Biopharmaceutical Enterprises through industrial policies and reform measures, so that resources can be concentrated to advantageous enterprises through integration, forming a competitive advantage for sustainable development of the whole industry, and enhancing the ability of enterprises to resist market risks In short, through asset restructuring to improve the industry concentration, promote the optimization of the industry's investment portfolio, and focus on supporting a number of growth advantage enterprises Secondly, the competitive pressure from foreign multinational pharmaceutical companies promotes the local enterprises to focus their advantages and enhance their core competitiveness through merger and acquisition, so as to expand the survival and profit space of local Biopharmaceutical Enterprises In addition, it is also determined by the characteristics of the biopharmaceutical industry The outstanding characteristics of this industry are high investment, high risk and long cycle Therefore, through asset restructuring, technology, capital, equipment, talents and other resources can not only strengthen the ability of enterprises to resist risks, but also more effectively carry out the link of early R & D and late industrialization To sum up, the asset restructuring of biopharmaceuticals is an inevitable trend determined by many factors Under the influence of national policies and medical reform, the trend will be more obvious in the next one or two years.
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