Under the background of the new round of economic restructuring and supply-side reforms, the pace of transformation and upgrading of China's pharmaceutical industry has been further accelerated, and companies have gradually climbed from raw materials, low-end formulations to high-end formulations, improved new drugs and innovative drugs, and more and more Many companies have also turned their sights on the international market, deepening the process of internationalization of Chinese pharmaceutical preparations through increased certification and overseas cooperation.
Foreign Trade Data Overview
Imports and exports of pharmaceutical products grow rapidly
In 2017, the import and export volume of western medicines in China reached US$20.6 billion, an increase of 19.2% year-on-year, of which exports were US$3.456 billion, an increase of 8.32% year-on-year; imports were US$17.157 billion, a year-on-year increase of 21.66%. The trade deficit was 13.7 billion US dollars, an increase of 25.56%.
From the monthly data, the growth rate of imports and exports showed a steady upward trend. The increase in import growth was particularly noticeable. From the perspective of export volume, the increase in the first half of the year was relatively small, basically the same as the same period of 2016, which may be in tension with the Sino-Korean relations in the first half of the year. It is related to the decline of payment capacity in the Middle East and parts of South America. However, since June, the export volume of pharmaceutical preparations has increased month by month, and it has reached its maximum monthly export value in December, which is an increase of 23.3% year-on-year. From the import point of view, except for July With a slight drop in imports this month, the trend of stable and rapid growth remained basically throughout the year.
The reasons for the rapid growth of China's preparation of foreign trade are externally viewed. First, the expiration of global pharmaceutical patents and the optimization of pharmaceutical expenditures in various countries have increased the demand for generic drugs; second, the gradual increase in the prices of international bulk commodities has increased the ability to pay; The Japanese market gradually saturates, and the global pharmaceutical companies pay more attention to China, which drives the import. From an internal perspective, the first is the low base in 2016; the second is the acceleration of the transformation and upgrading of enterprises; the third is the increasingly internationalization of the Chinese drug administration system. The effect of policies and measures gradually emerged; Fourth, the trend of integration of Chinese and foreign pharmaceutical resources is evident.
Concerned about processing trade exports, import of warehousing re-export trade
In 2017, the import and export of pharmaceutical preparations in China accounted for 10.2 billion U.S. dollars, a year-on-year increase of 19.8%, accounting for half of the total trade volume of western pharmaceutical preparations. It is the most important trade mode for the import and export of western medicine preparations in China. The overall performance is stable. Processing trade exports maintain a rapid growth trend. , an increase of 48.8% over the same period of last year, higher than the overall export growth of 40 percentage points, accounting for 45% of China's total exports of pharmaceutical preparations. Of which, the processing trade exports are mainly foreign-funded enterprises in China, mainly AstraZeneca, Merck and Pfizer, Accounting for 97%; while in the processing trade for imports, Chinese and foreign companies are equally divided, among which local enterprises export mainly to the United States, Africa, the United Kingdom, and Spain, and foreign capital mainly to Novo Nordisk and Sanofi. enterprise.
Warehousing and re-export trade has occupied an increasingly important position in the import of western medicine preparations in China. In 2017, Western medicines imported through warehousing re-export trades reached US$7.54 billion, an increase of 25.7% year-on-year, accounting for 44% of China's total imports of western medicine preparations. , Keyuan Xinhai and Shanghai Sinopharm Waigaoqiao are the top three companies engaged in the import and re-export of western medicine preparations, accounting for as high as 40%, and the increase rate is more than 20%.
Large quantities of pharmaceuticals have risen in volume and prices, and prices of high-end generic drugs have fallen
In 2017, a total of 73 kinds of western medicines were exported to China. The export volume of hormones, penicillins, and cephalosporins increased by 25.4%, 7.8%, and 14.6%, respectively, and the prices increased by 7.37%, 2.83%, and 1% year-on-year, respectively.
Hormone drugs have experienced recovering growth last year after undergoing volume and price declines in 2016. Among them, insulin drugs, corticosteroids, and growth hormone-containing drugs have seen the most significant increase. Penicillins have experienced slow growth over the past few years. For the first time last year, volume and price rose, mainly exported to Africa, Southeast Asia, and several regions in the Middle East. Cephalosporins have been able to continue their downward trend in prices. In recent years, prices and prices have risen for the first time, and exports of more advanced cephalosporins have grown. Mainly exported to ASEAN, Japan, Germany, the United States, Italy, Pakistan, Nigeria, Egypt and other markets. Affected by the substantial increase of vitamins, the average price of vitamins has achieved a 7.8% growth, but the export volume However, it dropped by 3.4%.
In contrast, due to the continued decline in the prices of generic drugs in the United States, prices of some high-end generic drugs exported to the United States have shown a tendency to decline, including a few drugs such as clarithromycin and amlodipine, including anti-cancer drugs. The prices of a series of high value-added products including psychotropic drugs and hypolipidemic agents have all decreased in terms of average export prices in the United States. Intense competition and low prices, coupled with the low number of generic products for Chinese companies listed in the United States, negotiated With limited capabilities, the road to commercialization has a long way to go.
Important area stands
EU: Bilateral trade soars, export of domestic companies enters the fast track
In 2017, bilateral trade between China and the European Union’s western medicines increased by 25%, which was higher than the overall rate of 6 percentage points. Among them, China’s exports to the EU’s western medicines increased rapidly, with exports reaching US$670 million, an increase of 53.5% year-on-year, which is higher than the overall export growth rate. 45 percentage points higher; imports from the EU 12.6 billion US dollars, an increase of 23.8%, accounting for 73.4% of China's total imports of western medicine preparations.
From the market point of view, in 2017, China’s exports to the EU were mainly concentrated in France, Denmark, the United Kingdom, Belgium, Germany and Spain. It accounted for 80% of China’s total exports of pharmaceutical preparations to the EU. Among them, exports to Denmark and Belgium were transnational. Enterprises are mainly located in China, while exports to the United Kingdom, Germany, and Spain are mainly local companies.
Although Novo Nordisk, AstraZeneca and other multinational corporations have contributed a large share of China's pharmaceutical exports to the EU, local Chinese companies have also entered a period of rapid growth in exports to the European Union. In particular, the substitution processing business has grown rapidly. Exports to the EU Among the top 20 companies, there are 14 local Chinese companies, 11 local companies with exports exceeding 5 million US dollars, Shenzhen Tiandao, Huahai, Shenzhen Lijian, Guilin Nanyao, Shenzhen Zhijun, Shandong Xinhua and other European Union exports. Both have achieved substantial growth.
Germany, France, Italy, Sweden and the United Kingdom accounted for 60% of the total imports of preparations in China, the most important source of imports for pharmaceutical preparations. In addition to a slight increase of 8% from Italian imports, imports from other markets achieved more than 20%. The substantial growth. Affected by the expansion of the domestic market and the implementation of the two-vote system, some major import agents, Yongyu Pharmaceutical, Keyuan Xinhai, Sinopharm, Sinomazone (Beijing) International Pharmaceutical Distribution Center, Shanghai Waigaoqiao, Shenzhen Kangzhe and other imports have also achieved substantial growth.
U.S.: The number of ANDA reached a record high, and some companies’ export growth exceeded 20%
The U.S. market is relatively large, with relatively complete protection mechanisms. Per capita income and reimbursement are relatively high. It has become the preferred destination for many enterprises in China to explore the international market, and some companies with strong cost control capabilities and good software and hardware infrastructure and financial strength have started. Sign up for new drugs and generic drugs in the United States.
In 2017, Chinese companies were granted 34 ANDA numbers in the United States, setting a record high. Whether it is Huahai Pharmaceutical, Renfu, and Haizheng, and other internationally known pharmaceutical companies, or Hengrui, Shiyao, Qilu, etc. Rapidly growing companies are rushing to accumulate ANDA numbers when they enter the US market, and some companies that are dominated by the domestic market and emerging markets have also begun to look to the US market. Huaren Pharmaceutical, Shiqiao Bio, Ruiyang Pharmaceutical , Buchang Pharmaceutical also has a breakthrough, to achieve the first ANDA approved in the United States.
In 2017, China exported US$310 million to US-western pharmaceutical preparations, an increase of 5.4% year-on-year, accounting for 9% of China’s total exports of western medicine preparations. Local companies have become the main driver of exports to the United States. Among the top 10 exports to the United States, 9 Among them, China's domestic enterprises, Huahai, Nantong Lianya, Renfu, Qilu, and Shijiao have all increased their exports by more than 20%. Qilu Pharmaceutical's nine products achieved exports to the United States, and the export value exceeded US$8 million. Stone Drugs 2017 8 The number of ANDA was approved. The value of exports to the United States exceeded US$6 million, an increase of over 90% over the same period of the previous year. In addition, although Jiangsu Jiangsu Haosen, Beijing Secco, Shandong Xinhua, etc. did not export much, there was also a breakthrough in exports to the United States in 2017. .
Africa, 'One Belt and One Road' : High Export Growth Zones, Multi-Zone Growth of Over 20%
In 2017, China’s export to Africa was 520 million U.S. dollars, an increase of 11.2% year-on-year, which was 2.9 percentage points higher than the export of total preparations. Nigeria, Democratic Republic of the Congo, Tanzania, Cameroon were the top four non-prescription markets in China, and accounted for China’s total non-export volume of preparations. Nearly 40% of the year-on-year increase of 24%, 43%, 52% and 27%, respectively. As dollar-denominated commodity prices began to rebound, exports to Angola, South Africa and Algeria also increased in several markets. The rate of recovery has increased by 24.9%, 5.8% and 107% year-on-year respectively. From the perspective of export products, non-export products are still concentrated on antimalarial medicines, antibiotics, anti-infectives and analgesics.
China's foreign trade grew rapidly with countries along the Belt and Road Initiative. The drive for preparations achieved rapid growth in Central and Eastern Europe, the CIS region, Central Asia, and South Asia, with growth rates of 53%, 31%, 19.4%, and 23%, respectively. India, Pakistan, Malaysia, Poland, Myanmar, Russia, Bangladesh, Ukraine and Central Asia are the main forces driving the growth of China's Western medicine preparations in the 'One Belt and One Road' region, and are also the key markets for China's pharmaceutical exports. Among them, China's India , Pakistan, Bangladesh, Russia and Ukraine achieved growth of more than 20%, exports to Poland triple digit growth, exports to India, the Philippines, Pakistan, Thailand, and Malaysia were all above 70 million US dollars. Local western medicines exports the top five markets to the 'Belt and Road'.
