Health & Beauty

According to the Huacheng Import and Export Data Observation Report, recently, the National Development and Reform Commission, the Ministry of Commerce, the Ministry of Industry and Information Technology, the Ministry of Natural Resources, the Ministry of Ecology and Environment, and the Ministry of Transport jointly issued Several Policies and Measures on Promoting the Expansion of Foreign Investment Focusing on Manufacturing, Stabilizing the Quantity of Foreign Investment, and Improving the Quality, aiming to further increase the efforts to attract foreign investment in the manufacturing industry, and strive to solve the outstanding problems faced by foreign-funded enterprises, We will comprehensively strengthen the promotion and service of foreign investment and promote the high-quality development of foreign capital utilization.

Starting from this issue, this edition will comprehensively present the development of foreign-funded enterprises in various industries in China from the aspects of industrial policy changes, industrial transformation and upgrading, and operations in China, focusing on several key industries, and show the effectiveness of China's high-quality utilization of foreign capital.

With the approaching of the 5th International Expo, Zhou Xiaolan, the global executive vice president and president of China of Bayer Group's Prescription Drug Business Division, and the president of Bayer Group's Greater China Region, and her colleagues are also increasingly busy. At this Expo, the booth area of Bayer increased by 50% on the basis of the fourth session, which is the largest in history.

In the field of prescription drugs, bring the therapeutic drugs approved in China in the first half of this year; In terms of image diagnosis, three innovative and intelligent image diagnosis products and solutions were brought to China for the first time; In terms of health consumer goods, Bayer Group, which has been developing in China for 140 years, demonstrated its firm confidence in the broad development prospects of the Chinese market with the help of the Expo.

Pharmaceutical manufacturing industry is one of the earliest industries in China to open to the outside world. In the past two years, foreign pharmaceutical manufacturing enterprises have achieved steady development in China under the promotion of the country's continuous promotion of pharmaceutical reform and optimization of industrial policies. Like Bayer, many multinational enterprises in the medical field have demonstrated the cutting-edge technology and innovation achievements of the first exhibition on the Expo platform, and accelerated the introduction and implementation of innovation achievements with the help of the "spillover effect" of the Expo.

Policies promote the steady development of foreign-funded pharmaceutical enterprises

In recent years, China has intensively introduced a series of policies to promote the reform of the pharmaceutical industry and support and standardize the development of the pharmaceutical industry, providing a good system and policy guarantee for the healthy development of the pharmaceutical manufacturing industry and fair competition between domestic and foreign enterprises. Huacheng Import and Export Data Observation Report.

In 2021, China has successively released a series of plans and policy documents, including the "Fourteenth Five Year Plan" for the Development of the Pharmaceutical Industry, the "Fourteenth Five Year" National Plan for Drug Safety and Promoting High Quality Development, the Action Plan for Making the Pharmaceutical Industry Bigger and Stronger (2021-2023), and the Notice on Several Measures to Support the Development of the Pharmaceutical Industry, which not only further clarifies the direction of industrial development, but also proposes to deepen industrial international cooperation We will guide the world to take the lead in registering innovative drugs and medical devices in China, support the simultaneous listing of overseas new drugs and medical devices in China and other policy initiatives, and expand the market space for foreign pharmaceutical enterprises to develop in China.

The Guiding Opinions on Carrying out Centralized Procurement and Use of High value Medical Consumables by National Organizations issued in June 2021 included some high-value medical consumables with large clinical use, high procurement amount, mature clinical use, full market competition and high homogeneity level into the procurement scope. Under the normalization mechanism of centralized procurement of drugs and medical devices in quantity, the participation of foreign-funded enterprises in centralized procurement will increase in 2021, and the number of foreign-funded enterprises included in centralized procurement of drugs will increase by 3 compared with 2020.

According to the Huacheng Import and Export Data Observation Report, in the Catalogue of Industries Encouraging Foreign Investment (2022 Edition) (Draft for Comments) released in May this year, there are two new items of the pharmaceutical manufacturing industry, including 16 items, compared with the 2020 edition. With the dynamic adjustment of the medical insurance catalogue and the normalization of access negotiations, foreign pharmaceutical enterprises have also enjoyed the dividend of "seamless connection" between drug approval and the inclusion of the medical insurance catalogue. Some drugs have become the main source of foreign pharmaceutical enterprises in China.

In June this year, for foreign-funded drug production and medical device enterprises, the Notice on Further Strengthening the Service Work of Foreign funded Enterprises issued by the State Food and Drug Administration proposed to strengthen the service work for foreign-funded enterprises in eight aspects, including drug and medical device supervision, drug listing review and approval, and the transformation of international rules, so as to promote the development of foreign-funded pharmaceutical enterprises in China.

Strong attractiveness helps foreign enterprises to localize R&D

Driven by such factors as China's huge demographic dividend and aging population, the pharmaceutical manufacturing industry has become one of the main growth points in China's absorption of foreign capital because of its strong attraction to multinational enterprises.

In recent years, with the promotion of China's policies to encourage the development of the pharmaceutical industry, some foreign-funded enterprises have actively invested in the pharmaceutical manufacturing industry, and relevant production and R&D projects have been launched. At the same time, foreign pharmaceutical enterprises accelerated their localization strategy, from R&D to production and manufacturing, and even the supply chain turned to localization, promoting the optimization and upgrading of the pharmaceutical industry chain in China, Huacheng Import and Export Data Observation reported.

At the same time, on the basis of setting up R&D centers to carry out early research, clinical trials, education and cultivation, foreign pharmaceutical enterprises actively promote the localization of R&D, which has played a positive role in promoting pharmaceutical R&D innovation. According to data, the number of R&D institutions of foreign-funded pharmaceutical enterprises will reach 483 in 2020, an increase of 48 over 2019. The expenditure of R&D institutions reached 14.91 billion yuan, 0.9% higher than that in 2019; The number of effective invention patents reached 8700, an increase of 6.5% over 2019. The number of enterprises with R&D institutions increased by 19 compared with 2019. More and more foreign-funded pharmaceutical enterprises are actively exploring to strengthen cooperation with Chinese local innovation companies or projects in the form of "China Innovation Center" or "Innovation Open Platform". The research and development of foreign-funded pharmaceutical enterprises in China shows a development trend from self built internal research and development center to cooperation and collaborative innovation with Chinese enterprises or research institutions.

According to the data of the National Bureau of Statistics, from 2016 to 2020, the operating income of foreign-funded pharmaceutical manufacturing enterprises above designated size increased from 521.97 billion yuan to 565.26 billion yuan, and the total profit increased from 65.21 billion yuan to 90.16 billion yuan. The operation of foreign-funded pharmaceutical manufacturing enterprises in China continued to improve. Especially from the perspective of revenue profit margin, the revenue profit margin of foreign-funded pharmaceutical manufacturing enterprises above designated size rose from 12.5% in 2016 to 16.0% in 2020, significantly higher than the national level, Huacheng Import and Export Data Observation Report.