2008 China Foreign Trade Medicines & Health Products Prospect

Party congress clearly the overall objective of health system reform, medical residents will spur substantial growth in consumer demand for our pharmaceutical industry to create a good environment unprecedented. In 2007, the State has published a series designed to help the pharmaceutical industry, scientific and technological progress of related policies, coupled with the various ministries should continue to introduce specific measures, from a technical, regulatory levels to promote the system, which will push forward the Chinese enterprises to improve their core competitiveness, further accelerate the pace of the world. In 2008, China’s Foreign Trade Medicines & Health Products will maintain rapid growth, chemical raw continue to be China’s exports of medicine and health products industry mainstay, our conventional bulk chemical raw edge will be maintained, especially antibiotics, vitamins , hormone, antipyretic and analgesic, amino acids, alkaloids and other products will take up a considerable share in the world.

With the domestic enterprises to improve productivity and technology, the export of Western medicines will speed up. Small and medium sized medical device while maintaining comparative advantage and export competitiveness, while some high-tech medical equipment products and high value-added exports to grow steadily, our medical equipment in the international market competitiveness will gradually increase. In addition, China’s TCM exports will maintain the momentum of rapid growth, Chinese crude drugs, extracts and health care products will also achieve rapid export growth. 2008 is expected to medicine and health products in China is expected to maintain more than 20% increase in total imports and exports to more than 40 billion U.S. dollars. In general, in 2008, China’s pharmaceutical import and export situation would seem to present the following new features:

(A) of the new industrial policy factors, medical foreign trade structure, China will have a major impact

Long time, the pharmaceutical industry has been influenced by the government’s policy of one of the industries, and since the beginning of 2007, for the pharmaceutical industry’s policies and measures as much as, density and impact of the deep is rare over the years, these policy factors bound to the continuation in 2008 and highlights the significant policy effects. Among them, the newly-introduced “Drug Registration” will encourage powerful enterprises, especially enterprises increase independent R & D, improve innovation, more companies from tapping the potential development of the internal power source or through foreign technical cooperation to find new breakthrough. State promulgated the “Guiding Catalogue Industrial Restructuring (2007 version),” to limit the production dimension C, penicillin and other “two high and one capital” products, especially about the implementation of the “pharmaceutical industrial pollution emission standards”, will increase the bulk API business environmental costs, water, coal, electricity, oil prices, and labor, safety and other laws, regulations and standards of strict enforcement, would greatly increase the production of integrated cost, combined with the State Drug Administration Department is preparing to introduce the export of drugs import and export of medical equipment management practices and management measures on import and export of growing efforts to standardize market order, etc., will result in some weak or do not have the business qualifications of the enterprises have been eliminated, the majority of pharmaceutical companies in the new regulatory environment policy experience a wider reshuffle. Determination and innovation, targeting high-end products and markets, creating higher added value will undoubtedly be the first choice of new business wins, the extensive growth mode of foreign trade is expected due to the adjustment within the industry and the emergence of new changes.

(B) of the Chinese enterprises to seize the new opportunity to speed up the pace of opening up the international market

2008 for the year for large pharmaceutical companies are full of business opportunities in China a year, the global pharmaceutical market will achieve 5-6% growth, market size is expected to reach 735 000 000 000 -7.45 thousand billion dollars, the world will have annual sales About 200 million worth of drugs facing patent expiration, is equivalent to the previous two years combined. Which, Risperdal, Fosamax, Topomax, Lamictal and Depakote and other products will be more mainstream end of the world market exclusivity, which will drive generics market to grow at 14-15%, reaching 700 billion. 2008, the United States more than two thirds of prescription drugs will be generic. Germany’s new government contracts implementation plan as well as Japan, Spain and Italy, the educational project to promote generics in the market more widely used. In addition, GlaxoSmithKline, AstraZeneca and other multinational companies have begun to shift their production bases to China, many multinational companies in China has been and will continue to establish more research and development center. In the global pharmaceutical manufacturing hub to Asia, led the trend, China will have more and more enterprises patent expiration generic products carry more bulk drugs, formulations and other products of international production, R & D outsourcing, commissioned to carry out drugs clinical trials, more extensive participation in international division of labor and cooperation even more refined.

(C) international trade in China’s pharmaceutical companies face new challenges during the process of

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