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 Ecological Environment and the Ministry of Transport jointly issued the Several Policies and Measures on Promoting the Expansion, Stability and Quality of Foreign Investment with the Focus on the Manufacturing Industry, aiming to further increase the investment attraction in the manufacturing industry and strive to solve the outstanding problems faced by foreign-invested enterprises, We will comprehensively strengthen the promotion and service of foreign investment and promote the high-quality development of foreign investment.

Starting from this issue, this edition will focus on several key industries, starting with industrial policy changes, industrial transformation and upgrading, and business operations in China, to comprehensively present the development of foreign-funded enterprises in various industries in China, and show the effect of high-quality utilization of foreign capital in China.

As the fifth China International Fair approaches, Zhou Xiaolan, the global executive vice president and president of China of Bayer Group's prescription drug business unit, and the president of Greater China of Bayer Group, and her colleagues are also increasingly busy. At this Expo, Bayer's booth area increased by 50% from the fourth, the largest in the past.

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, it brought three innovative and intelligent image diagnosis products and solutions for the first exhibition in China; In terms of health consumer goods, Bayer Group, which has been developing in China for 140 years, shows its firm confidence in the broad development prospects of the Chinese market with the help of the Fair.

The 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 reform in the pharmaceutical sector and the optimization of industrial policies. Like Bayer, many multinational enterprises in the medical field displayed the cutting-edge technology and innovation achievements of the first exhibition on the platform of the Fair, and accelerated the introduction and implementation of innovation achievements with the help of the "spillover effect" of the Fair.

Policies promote the stable development of foreign pharmaceutical enterprises

In recent years, China has intensively issued a series of policies to promote the reform of the pharmaceutical sector and support the standardization of 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 successively issued a series of planning and policy documents, such as the "Fourteenth Five-Year Plan" for the Development of the Pharmaceutical Industry, the "Fourteenth Five-Year Plan" for National Drug Safety and Promotion of High Quality Development, the "Action Plan for Making the Pharmaceutical Industry Stronger and Larger" (2021-2023), and the "Notice on Several Measures to Support the Development of the Pharmaceutical Industry", which not only further clarified the direction of industrial development, but also proposed to deepen international cooperation in the industry We will guide global innovative drugs and medical devices to take the lead in registering in China, support the simultaneous listing of overseas new drugs and medical devices in China and other policy measures, and expand the market space for the development of foreign pharmaceutical enterprises in China.

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

According to Huacheng Import and Export Data Observation, in the Catalogue of Industries Encouraging Foreign Investment (2022 Edition) (Draft for Comments) released in May this year, the catalogue of pharmaceutical manufacturing industry has been added 2 items compared with the 2020 edition, including 16 items in total. With the dynamic adjustment of the medical insurance catalogue and the normalization of the access negotiations, foreign pharmaceutical enterprises also enjoy the bonus of "seamless connection" between the drug approval and the inclusion of the medical insurance catalogue. Some categories of 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 and promote the development of foreign-funded pharmaceutical enterprises in China in eight aspects, including drug and medical device supervision, drug listing review and approval, and international rule transformation.

Strong attraction helps foreign enterprises to localize R&D

Driven by China's huge demographic dividend and aging population, the pharmaceutical manufacturing industry has a strong attraction for investment by multinational enterprises and has become one of the main growth points for China to absorb foreign investment.

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

At the same time, foreign pharmaceutical enterprises have actively promoted the localization of research and development based on the establishment of research and development centers to carry out early research, clinical trials, education and cultivation activities, and played a positive role in promoting the innovation of pharmaceutical research and development. According to data, the number of research and development institutions of foreign pharmaceutical enterprises reached 483 in 2020, an increase of 48 compared with 2019. The expenditure of research and development institutions reached 14.91 billion yuan, up 0.9% from 2019; The number of effective invention patents reached 8700, an increase of 6.5% over 2019. The number of enterprises with research and development 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 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 margin, the revenue margin of foreign-funded pharmaceutical manufacturing enterprises above designated size has increased from 12.5% in 2016 to 16.0% in 2020, which is significantly higher than the national level, Huacheng Import and Export Data Observation Report.