Development status of Chinese pharmaceutical enterprises

Development status of Chinese pharmaceutical enterprises

The epidemic accelerated the development of the pharmaceutical market; China is the second largest pharmaceutical market, but the TOP10 drugs are still monopolized by foreign pharmaceutical companies.

In 2021, Pfizer Bientech's mRNA vaccine Fububitamide topped global pharmaceutical sales with $36.9 billion in sales, followed by AbbVie's Adalimumab injection Humela with $20.7 billion in sales. The top 10 drugs in global drug sales include COVID-19 vaccine, monoclonal antibody and chemotherapy drugs. The United States is the world's largest pharmaceutical market, accounting for 40% of the market share, China with 12% of the second, Switzerland third (7.7%); From 2017 to 2021, the value of the global pharmaceutical market increased year by year, after experiencing a slowdown, the growth rate in 2021 reached 12.5%.

The proportion of sales cost investment in Chinese pharmaceutical enterprises is gradually decreasing, while the proportion of R&D cost investment is increasing year by year.

Compared with other types of pharmaceutical enterprises, the sales expenses of vaccine enterprises accounted for a relatively small proportion, reaching a peak in 2020, accounting for 16.7%, an increase of 12.4% compared with 2019, and then declining to 11.6% in 2021. The proportion of R&D expenditure investment increased gradually, reaching 5.5% in 2021. After declining year by year, the proportion of sales expenses of TCM enterprises will rebound to 24.6% in 2021, and the proportion of R&D expenses will remain stable at 2%-3%. The proportion of sales expenses of chemical agent enterprises continued to decline after 2019, but the proportion of R&D expenses increased year by year; The sales expense investment of biopharmaceutical enterprises will increase by 9.6% in 2021, and the proportion of R&D expense investment is much higher than that of other types of enterprises, which will peak at 37.3% in 2020 and then begin to decline.

Policy guidance, pharmaceutical companies focus on research and development, to innovation-driven, high-quality and international direction.

In 2022, the state has successively issued a number of policies on the development and reform of pharmaceutical enterprises, guiding domestic pharmaceutical enterprises to gradually have the ability to innovate and be in line with international standards, and promoting the high-quality development of enterprises.

The core value of digital transformation of pharmaceutical companies: to help pharmaceutical companies achieve high-quality value cycle development.

Focusing on industrial upgrading, we should first achieve high-quality development of pharmaceutical enterprises. High-quality development means valuable clinical value discovery, efficient research and development to avoid waste of resources, compliant autonomous and controllable safety production, precision marketing, reasonable commercial profits and a complete ecology.

The essence of the business model of pharmaceutical companies is the "pharmaceutical value cycle", that is, the perfect operation of the four links of drug discovery, clinical development, production and sales generates cash flow. When the four business links can be perfected to produce a full box of pharmaceutical value cycle, it is a perfect innovative drug enterprise business model.

As a technical means, the digitalization of pharmaceutical enterprises helps enterprises carry out digital transformation and upgrading in the top-level design and various operation links, so as to help pharmaceutical enterprises achieve high-quality development.

At present, the digitalization level of pharmaceutical enterprises is low, and the driving force of transformation mostly comes from the expectation of decision-making level for digital transformation.

According to statistics, 70% of China's pharmaceutical companies are in the industrial 2.0 stage, only 20% are in the industrial 3.0 stage, and even 10% are still in the industrial 1.0 stage, so the foundation of enterprise automation and information technology needs to be further improved.

The driving force for digital transformation in pharmaceutical companies is mainly the expectations of corporate decision makers, the compliance requirements of the pharmaceutical industry, and the innovation requirements of the enterprise business.

The informatization investment budget of pharmaceutical enterprises has increased, and the digital development of pharmaceutical industry shows the characteristics of "polarization"

According to the data, 38.3% of pharmaceutical companies in 2021 invested more than 10 million yuan in informatization in 2021, and by 2022, the proportion of this part increased to 43.3%. According to the ranking of investment in informatization of pharmaceutical enterprises, enterprises will prefer the construction of R&D informatization system.