Chinese
Pharmaceutical Industry
Sample page
2. An overview of the pharmaceutical industry in China
2.3
The structure of the Chinese pharmaceutical industry
2.3.1
Industry output
In 2003,
the Chinese pharmaceutical industry produced 34 kinds of finished
pharmaceuticals (classified by therapeutic indication), more than 4000 different
pharmaceutical products and over 300 biological products, including blood
products, antisera and other blood fractions, vaccines, toxins and cultures of
microorganisms for therapeutic, prophylactic or diagnostic use.
China’s
pharmaceutical industry can be divided into five sub-sectors (see table 2.1 and
figure 2.2), with the first three making up over 90% of the market:
·
Production of
chemicals for pharmaceutical manufacturing
·
Pharmaceutical
manufacturing
·
Production of
traditional Chinese medicine and medicinal material
·
Production of
veterinary medicines
·
Production of
biologicals
The
contribution of the other sub-sectors to gross industrial output continued to be
insignificant, as shown in table 2.1 and figure 2.2.
The output of veterinary medicines and biologicals accounts for about
only 2% and 8% respectively. The share of veterinary medicines in gross
industrial output has always maintained a lower level over the last few decades.
The production of biopharmaceuticals only began to grow in the late
1990s, so its share in gross industrial output is not yet significant.
|
Sub-sector |
No of companies |
Output value (RMB billion Yuan) |
Sub- sector output value as % of total |
Sales revenue (RMB billion Yuan) |
Sub- sector sales revenue as % of total |
|
Chemicals for pharmaceutical manufacturing |
895 |
81.555 |
28.22 |
83.373 |
30.31 |
|
Completed pharmaceuticals |
1084 |
90.370 |
31.27 |
87.252 |
31.72 |
|
Traditional Chinese medicine and medicinal materials |
1352 |
88.058 |
30.47 |
78.284 |
28.46 |
|
Veterinary medicine |
311 |
6.156 |
2.13 |
5.419 |
1.97 |
|
Biological products |
421 |
22.859 |
7.91 |
20.740 |
7.54 |
|
Total |
4063 |
2889.98 |
100 |
275.068 |
100 |
Note: Output value
- value of goods manufactured; Sales revenue – value of goods sold;
therefore output value – sales revenue = value of stock
Source:
China Industry Statistical Yearbook 2004
Source:
China Industry Statistical Yearbook 2004
The
pharmaceutical industry is a fast-growing sector in the Chinese economy, but is
not yet a significant contributor, because its output accounts for only 2.03% of
the total output of the overall industry in China. In 2003, its total output value reached RMB 288.998 billion
Yuan. Between 1978 and 2003, the output value of this sector increased at an
annual average rate of 16.72%, far greater than the rate of increase in Chinese
industries overall (11.4%). Moreover, the net asset profit rate of this sector
was also higher than that of overall industries, as shown in figure 2.3.