Two elements of future competition of pharmaceutical enterprises: R & D innovation and cost control ability

[pharmaceutical Station market analysis] in 2019, with the implementation and promotion of China's consistency evaluation and volume purchase policy, the pharmaceutical market pattern has changed, and enterprises are facing challenges and opportunities of "turning point" At the same time, the industry believes that in the future, the pharmaceutical market will gradually focus on the top pharmaceutical enterprises with strong R & D innovation ability and high cost control level This is mainly because, on the one hand, generic drugs without conformity evaluation will be difficult to enter the market On the other hand, through the consistency evaluation of generic drugs, under the screening principle of "low price" in volume procurement, the winner will have more market share The varieties of pharmaceutical enterprises need to have strong R & D innovation ability and cost control management ability, whether through consistency evaluation or in volume purchase In terms of R & D innovation capability, in recent years, domestic innovative drugs have been approved and put on the market at a faster speed due to the favorable policies However, compared with developed countries, the innovation ability of China's pharmaceutical industry is still weak, and the R & D investment needs to be increased With the implementation of the national 4 + 7 volume procurement, the era of high gross profit of domestic generic drugs begins to end, and the innovation ability needs to be improved Some people in the investment industry think that there are great opportunities for innovative drug research and development, and the country has invested a lot of energy in this field, so there may be more development prospects in the future But not particularly optimistic about generics "Now the state's restrictions on generic drugs, from another perspective, actually give more space for new drug research and development." The industry points out that the innovation and R & D capacity in China is weak Pharmaceutical enterprises need to set goals, find gaps, increase R & D investment, introduce innovative talents, and think about the trend ahead In the aspect of cost control, volume purchase requires generic pharmaceutical enterprises to have stronger control over the cost of pharmaceutical production, so as to ensure the low price of drugs and the profitability of enterprises In order to control cost, many enterprises are upgrading cost management system For example, in the case that the requirements of conformity assessment for generic pharmaceutical process and quality are consistent, many API enterprises begin to consider self supply of raw materials and large-scale production, so as to achieve self-sufficiency and effectively control costs According to the industry, environmental protection, quality and cost are the factors that must be considered for the sustainable development of API enterprises In the future, the API market is still huge "In the context of the continuous elimination of unqualified API enterprises, more excellent manufacturers will stand out At that time, it will lead to the continuous improvement of the industry level, better meet the demand of pharmaceutical production in downstream industries, help pharmaceutical enterprises to produce higher quality drugs, and benefit patients." Some enterprises introduce higher automation and environmental protection equipment or production lines to reduce the cost of labor and environmental protection According to the industry, with the development of automation, information technology and data technology, the introduction of automatic production line is of great significance to pharmaceutical enterprises It can help pharmaceutical enterprises achieve continuous production, improve production efficiency and competitiveness, and further reduce production costs According to industry data, in 2018, China's total generic drug market reached about 500 billion yuan, accounting for about 40% of the total drug consumption market However, 95% of the drug approvals are generic, and the pharmaceutical enterprises are mainly generic In general, with the promotion of consistency evaluation and volume purchase policy, the share of high barrier generic drugs will gradually increase And pharmaceutical companies with strong innovation and R & D capabilities and cost control capabilities will usher in a broader market space.