Current development status and market prospects of China's pharmaceutical industry in 2018

In 2017, pharmaceutical industry increased 12.3% and was 2% higher than the same period last year, and was higher than the overall national industrial increase of 4.7%, which was at the top of the total industrial sector.The pharmaceutical manufacturing industry's total operating revenue and profits were 2845.96 billion and 33.1 billion yuan in 2017, respectively, representing an increase of 12.5% and 17.8%, respectively.

The pharmaceutical industry has entered the deep water zone of doctor change since 2014, accompanied by factors such as price reductions in the tender, and the pharmaceutical industry has entered the adjustment period, experiencing a flurry of pain in 2015, from 2016 onwards the pharmaceutical industry gradually established the bottom, and performance has begun to rise steadily.As can be seen through the data of the pharmaceutical industry of the Ministry of technology, the pharmaceutical industry as a whole ushered in a new cycle of development after industry structure adjustment in multiple roles such as policy guidance, development of the large health industry, and population structure adjustment.

The medical demand of our nation shows an increasing trend year by year, and the total diagnosis and treatment of national medical and health institutes reached 73.0 billion people in January to November 2017, representing an increase of 3.0%;The number of diagnosis and treatment encounters in medical institutions reached 1.30 billion in January-February 2018, representing a 5.6% increase.Although the number of diagnosis and treatment visits decreased slightly year-on-year, both the overall medical needs and the medical needs of individuals were continuously increasing.The continuous increase in the per capita cost of outpatient and discharged home has been achieved in China, and the increase in per capita cost of diagnosis and treatment has been superimposed

Public hospitals, as the main body of medical care in our country, bear a huge medical workload and cost consumption, from the beginning of the medical modification to now, public hospitals in crease the number of medical service employees while medical costs are effectively controlled.As the data show, the increase of hospital outpatient and inpatient per capita cost and total income all appeared to decrease, the cost of drugs was effectively inhibited, the income ratio of medical services was improved, and the ratio of personal health expenditure continued to decrease.

The pharmaceutical industry ushered in escalating consumption, a progressive shift in demand to higher end products, and changes resulting from industry policies such as the two ticket system, which drove the pharmaceutical industry to move forward and adapt product structure and sales strategies.From data analysis of 268 sample companies, pharmaceutical listed companies' average crude rates of Q1 in 2017 and 2018 are 33.77% and 35.21%, respectively, representing a substantial increase from 32.17% in 2016.Driven by the rising interest rate, the average net profit margin of the industry also shows a significantly rising trend, and the net profit margins of the Q1 industry are 9.57% and 9.39% in 2017 and 2018, respectively, which is better than the same period level in 2016.

In the pharmaceutical industry ushering in a change, the hair rate has increased, and the cost of sales has dramatically increased.The combined sales expense of q1268 sample companies reached 180.776 million and 53396 million RMB in 2017 and 2018, representing an increase of 29.75% and 48.42%, respectively, and the sales expense rate rose to 15.06% and 16.01%, respectively.Management expenses during the same period maintained the growth below the growth rate of income, and the combined management expenses of q1268 sample companies in 2017 and 2018 were RMB 84.79 million and RMB 215.37 million, respectively, representing an increase of 15.94% and 21.01%, respectively, while the rate of management expenses increased to 7.00% and 6.46%, respectively, which were lower than the level of the same period in 2016.