With intelligent manufacturing as the core, the Leweiyuanda Health and Smart Industrialization Centralized Procurement Project will promote the large-scale and intensive development of the bio-pharmaceutical industry in a bio-pharmaceutical industrial park, and strive to create a "modern" and "intelligent" pharmaceutical production. "Clustered" Buchang Traditional Chinese Medicine Modernization Integration Project, Buchang Pharmaceutical Xuanfeibaidu Granules, which was officially launched and included in the National Medical Insurance Catalogue ……Nowadays, walking on the site of major biomedical projects in the High-tech Zone, We can really feel the wave of the agglomeration and development of the biopharmaceutical industry.

Based on life science theories and biotechnology, the biopharmaceutical industry is one of the high-tech industries that has received extensive attention in recent years for the purpose of disease prevention, diagnosis and treatment. Currently, China's biopharmaceutical industry is still in its infancy. As living standards improve and health awareness increases, China's biopharmaceutical industry will usher in market opportunities.

I. Analysis of the market status and development prospects of China's CRO industry in 2021

my country's pharmaceutical R&D investment has increased

Pharmaceutical R&D expenditure is the basis for driving the development of the CRO industry. In recent years, my country's pharmaceutical R&D investment has continued to increase, and its investment scale will reach 25.3 billion US dollars in 2020. The growth of pharmaceutical R&D investment by pharmaceutical companies will release a lot of growth space for the CRO market.

Policies support the development of pharmaceutical innovation

In recent years, the state has introduced a number of policies to promote the development of pharmaceutical innovation. In 2021, the "14th Five-Year Plan" proposed that it is necessary to improve the rapid review and approval mechanism for innovative drugs, vaccines, medical devices, etc., to speed up the review and approval of drugs and medical devices that are urgently needed in clinical and rare disease treatment, and promote the urgent need for clinical drugs and medical devices that have been listed overseas. New drugs and medical devices should be listed in China as soon as possible.

The number of approved innovative drug applications has exploded

There is a clear upward trend in the number of clinical approvals for innovative drugs in China. In 2020, the number of clinical applications for innovative drugs in my country showed an explosive growth, reaching 1,435. Generally, the complete clinical trial period of innovative drugs is more than 3 years, and the head clinical CRO companies will fully benefit from the large number of approvals of innovative drug clinical applications in 2015-2020.

CRO helps pharmaceutical companies shorten the R&D cycle

CRO is a good helper for pharmaceutical companies to develop new drugs. CRO companies are entrusted by customers (mainly pharmaceutical companies) to provide full or partial process services from drug development to marketing in accordance with industry regulations and customer requirements. The participation of CRO can allow pharmaceutical companies to shorten the R&D cycle under the background of increasing R&D difficulty. According to Tuft statistics, with the participation of CRO, the four stages of 1/2/3/NDA can be reduced by 23/58/43/31 weeks respectively, and the overall time spent is reduced from 497 weeks to 342 weeks.

The market size will reach 150 billion yuan

Driven by factors such as increasing R&D investment and policy support for pharmaceutical innovation and development, my country's CRO industry has ushered in development. In 2020, the market size of my country's CRO industry will reach 52.2 billion yuan, a year-on-year increase of 9.43%; it is expected that the market size will reach 150 billion yuan by 2025.

II. Problems existing in my country's biopharmaceutical industry

1. Low level of enterprise management

At present, my country's biopharmaceutical industry lags behind the world's advanced development level. Most of the advanced instruments are mainly imported from abroad. At the same time, the rules and regulations of enterprise management are not perfect, resulting in poor product quality stability and waste of resources.

2. Product positioning is limited to the domestic market

my country's biopharmaceutical products are basically positioned in the domestic market, their production and R&D technologies cannot be in line with international standards, and products cannot enter foreign markets, which will make it difficult for my country's biopharmaceutical industry to form a larger market scale.

3. Insufficient capital investment

In terms of capital investment in biomedicine, my country is currently in a situation of insufficient capital investment. Domestic biotechnology enterprises are mainly small and medium-sized, and lack of scientific research investment, making it difficult to carry out product production and research and development.

4. Lack of specialization in technical projects

Few domestic companies can directly participate in biotechnology research and achievement transformation. At present, my country's biopharmaceutical research and development are disconnected, scientific research projects and enterprises cannot be fully connected, and technical projects lack specialization, resulting in slow industrial progress .

Three, the pharmaceutical industry has great prospects

Looking ahead, some fund managers expressed their focus on investment opportunities in innovative drugs and their industrial chains, innovative medical devices, vaccines, consumption upgrades and medical services, especially innovative drugs and their industrial chains.

The fund manager believes that innovation is the core driving force for the long-term upward development of the pharmaceutical industry. At present, China has gradually caught up with the overseas pace in the research and development of innovative drugs, and has emerged in the international market. The future development is worth looking forward to. At the same time, innovative drugs have now entered a reasonable valuation range. Under the background of the current strong demand for orders in the industry and the rapid expansion of production capacity, it is still a sector with strong performance certainty and growth in the pharmaceutical industry.

Sinolink Securities released a research report saying that with the successful research and development of high-value innovative drugs and their approval for marketing, the terminal sales of innovative drugs flowed to DTP pharmacies outside the hospital with professional management in the context of outflow of prescriptions. The agency believes that pharmaceutical distribution companies, chain pharmacy companies and medical technology companies have advantages in deploying DTP pharmacies.

Among them, pharmaceutical distribution companies have formed stable cooperation with upstream suppliers and downstream medical terminals in distribution, and the accumulated channel resources can give them higher bargaining power when negotiating sales varieties with pharmaceutical companies. Regional distribution companies tend to have higher expertise in their operations.

Chain pharmacies have strong store replication and expansion capabilities, and the availability of medicines is higher. In particular, leading chain pharmacies have brand effects and increase trust among pharmaceutical companies and patients. Medical technology companies have the ability to collect and process data, and can process data in the whole process of patients' medication and feed them back to patients, doctors, and pharmaceutical companies to create greater value. It is recommended to pay attention to Dajia Weikang, the common people, Si Pai Health, etc.

In recent years, the pharmaceutical industry has been greatly affected by the centralized procurement price control policy, but there are still a large number of pharmaceutical companies relying on innovation-driven, import substitution, etc., to achieve a sharp rise in market value. From the perspective of policy orientation and industrial trends, innovation is the long-term direction. With the continuous improvement of residents' consumption capacity, the fields of consumer medicine and vaccines will show a high growth momentum.

IV. Countermeasures and suggestions for the development of China's biopharmaceutical industry

1. Promote the development of the central and western regions and balance the industrial structure

At present, my country's biopharmaceutical industry has initially formed an industrial pattern in the central and eastern regions, and there is still a large space in the central and western regions. For this, the central and western regions should pay attention to relying on universities and local characteristic resources to establish biopharmaceutical research and development institutions and production. Enterprises, under the favorable policies issued by the state for the development of the biopharmaceutical industry, seize the market opportunities and drive the development of the biopharmaceutical industry in the central and western regions.

2. Scientifically assess one's own conditions

The technical level of my country's biopharmaceutical industry is uneven. Compared with the world's advanced level, there is still a certain gap. Therefore, we should pay attention to scientifically evaluate our own conditions, judge its advantages and disadvantages, and avoid blind development and waste of unnecessary resource.

3. Give full play to technical advantages

For the technologies with scientific and technological advantages and resource advantages in my country, it can enhance the ability of technology and product innovation, closely follow the trend of foreign biomedical development and research, and gradually form the advantageous technologies and products of my country's biomedicine.

4. Strengthen the cooperation between enterprises and research institutes

The core of the field of biomedicine is the development of technology. It should be based on the needs of the market, combine the goals of researchers with the goals of enterprises, strengthen cooperation between enterprises and scientific research institutes, and give full play to my country's low human capital. advantages, and improve the international competitiveness of my country's biopharmaceutical enterprises.

Article source: Qianzhan Industry Research Institute, Bizhi, Pharmaceutical Network