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Transformation and acceleration of pharmaceutical industry, innovation and development add luster to "healthy China"
Release date: September 20, 2019

Driven by the reform of economic system and science and technology system, China's pharmaceutical industry has achieved unprecedented development, and has formed a relatively complete pharmaceutical industry system, which has become one of the pillar industries of the national economy. In recent years, with the steady progress of medical reform, policies in various fields such as medicine, medical treatment, medical insurance and circulation have been issued intensively, which has helped the optimization and upgrading of China's pharmaceutical industry structure. Innovation is the core driving force to lead the development of pharmaceutical enterprises. R & D needs to be based on the national conditions and do more product innovation that patients can afford.

     Industrial transformation and upgrading

Since the reform and opening up, with the deepening of the "three medicine linkage" reform, China's medical and health undertakings have made great achievements. According to the data released by the National Bureau of statistics, at the end of 2018, there were 997000 medical and health institutions in China, an increase of 271 times compared with the end of 1949. The ability of disease prevention and control was significantly enhanced, and the health status of residents was significantly improved.

China's medical reform, initiated from both sides, is inseparable from the medical sector. Whether it is the reform of medical insurance payment, hierarchical diagnosis and treatment, public hospital reform, or new policies such as drug consistency evaluation and volume purchase, are promoting the upgrading and transformation of the whole industry.

According to Chen bang, chairman of Aier Ophthalmology, the policy of medical insurance cost control and procurement with quantity is mainly to control consumables and drugs, and prevent the abuse of medical insurance funds and some low-quality and high-priced drugs and consumables. China's long-term structural adjustment is conducive to the healthy development of the medical industry.

The number of private hospitals in China is increasing with the increasing of private hospitals. According to the latest data released by the National Health Commission, as of the end of June, there were 33000 hospitals in China. Among them, there are 12000 public hospitals and 21000 private hospitals. Compared with the end of June 2018, there were 180 public hospitals and 1760 private hospitals.

   Independent innovation adds color to "healthy China"

With the vigorous promotion and guidance of policies, innovation has become the core of a new round of medical reform. In recent years, China's independent research and development of new drugs have been approved and put on the market, showing an unprecedented concentrated outbreak.

In terms of innovation applications, it was 75% higher than in 2016. In 2018, 48 new drugs were approved, including 18 new anti-cancer drugs, an increase of 157% over 2017.

Chen Qixing, chairman of the board of directors of high molecular medicine and big molecule medicine, has established an international platform for R & D of high molecular medicine and big molecule medicine, and has established an innovative platform for small molecule medicine and big molecule medicine. After ten years of efforts, Hanfu pharmaceutical company has built a unicorn. In February this year, the first product of Fuhong Hanlin, rituximab injection, was approved by the State Food and drug administration, benefiting lymphoma patients. The company also has more biologically similar drugs and bio innovative drug products on the road.

In addition to Fosun Pharmaceutical, the heavyweight products of Hengrui pharmaceutical, Zhengda Tianqing and other leading innovative pharmaceutical enterprises have been approved for listing. Chen Qiyu said that he believed that the trend of innovation and research in the future must be to move forward along technology and to tackle major diseases. Fosun Pharmaceutical will continue to expand its innovative research layout and R & D investment in cancer, autoimmune diseases and other fields. At the same time, we will continue to focus on the global cutting-edge innovative technologies, including regenerative medicine, cell therapy and gene therapy.

Li Chen, a reporter from China securities firm, said that strengthening the management of China's pharmaceutical industry is an important channel for China's pharmaceutical industry. The more innovative drug research and development enterprises, the more help to reduce drug prices, ease the pressure of medical insurance payment.

     Global layout feeds back to China

Pharmaceutical enterprises are vigorously developing products, but also actively implementing the internationalization strategy. Chen Qiyu said that the company cooperates with global innovative companies to lay out an innovation system around the world. Fosun Pharmaceutical has its own bases and partners in San Francisco, Israel and other important global innovation places. The network of VC system is going deep into the technological front line of innovation and research. This diversified and flexible cooperation mode makes Fosun Pharmaceutical rely on the rapid development of these global innovative enterprises in scientific and technological innovation, bringing the leading medical technology into China and benefiting more patients.

Chen Bang said that Aier ophthalmology has three leading overseas ophthalmic institutions, recently acquired 35% of the equity of ISEC eye group in Southeast Asia and launched a tender offer. Through investment and acquisition of international famous ophthalmic institutions, the group has built a higher level of world-class scientific research, talent and technology innovation platform, promoted the global clinical and academic research work, and continuously enhanced the strength and depth of "sharing global ophthalmic wisdom".

(source: China Securities Journal)