Eileen Gu's  Instablog

Eileen Gu
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I have been working in market/Industry research for almost 5 years since I got my Master's Degree of Management. I used to be an analyst for 3 years and turned to customer oriented position in recent years. I hope we can build a knowledge sharing networks to exchange information and values.... More
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China Research and Intelligence
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  • Chinese Biopharmaceutical To Embrace The "Gold Decade" Development 0 comments
    Apr 25, 2012 3:20 AM

    The bio-industry is one of the seven new industries which are supported by the state. At the same time, bio-medicine has been submitted to the State Council in "the 12th Five-Year Plan" and the official release date is just around the corner. Under the guidance of industrial policy, in 2011, for the pharmaceutical industry, the investment opportunities will be reflected in the planning of the emerging industries in "the 12th Five-Year Plan", such as new vaccines, modern medicine, medical equipment sector and so on.

    Biopharmaceutical industry is an emerging industry with knowledge-intensive, high technical content and highly integrated multi-disciplinary mutual penetration. There are 15 kinds of genetically engineering medicines and vaccines approved for marketing, another dozens of genetically engineering medicines are undergoing clinical validation and about dozens of medicines are also under research and development. The continuous development, production and listing of the domestic gene engineering products, have broken the long-term monopoly situation of Chinese clinical medicines by foreign biological products.

    On October 18, 2011, the Decision of the State Council to Speed up the Cultivation and Development of Strategic Emerging Industries issued by the State Council points out that in the bio-industry, "to vigorously develop innovative drugs, e.g. biological technology drugs for the prevention of major diseases, new vaccines and diagnostic reagents, chemicals, modern traditional Chinese medicine, etc. enhancing the level of bio-pharmaceutical industry; to accelerate the R&D and industrialization of advanced medical equipment, medical materials of biomedical engineering products, promoting the large-scale development."

    Since 2010, market value of the pharmaceutical sector has been growing, exceeding CNY 1.3 trillion and ranking at No.5 in the total market of the pharmaceutical sectors. In 2010, from January to November, the profits of the pharmaceutical sector achieved excess return of 52.9% and 39.3% of the absolute return. In 2011, the profits of the pharmaceutical sector were still expected to maintain the growth rate of 25% to 30%. The next 5 to 10 years is still the golden era of medicine investment. n the next five years, the compound annual growth rate of China's pharmaceutical market will reach 24%. It will overtake the U.S.A in 2020 to become the largest pharmaceutical market. The Chinese pharmaceutical industry is about to embrace the "gold decade" of the development.

    In addition, the outsourcing market of the huge global biomedical R&D is another cause for the hot Chinese biopharmaceuticals. According to research, the scale of outsourcing market of global bio-pharmaceutical R&D reached USD 36 billion in 2010.

    In the view of the condition and national situation of the current development of China's biopharmaceutical industry, China must closely follow the latest research and development trends of foreign biomedical industry, focusing on the establishment of the emerging industry of biotechnology and transformation of traditional industry to develop China's bio-drugs. To make use of the excellence in the fields of biopharmaceutical technology and superior products,Chinese biopharmaceutical enterprises should strengthen those project researches with advantages in China's scientific and technological resources and enhance the capabilities of technology and product innovation.

    To get more research, please see Research Report on Chinese Bio-pharmaceutical Industry, 2012


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