According to the August 31 financial statistics of the pharmaceutical network, 262 pharmaceutical companies reported a rise in net profit, 90 declines and 10 losses in the second half of 2017.Overall, the pharmaceutical company is running smoothly and the overall performance is relatively flat.
Under the influence of environmental regulation, the production capacity of raw materials shrank, and the price of raw materials increased.In addition, there are bright spots in medical retail, pharmaceutical consumer products and medical services.
People in the industry said that since the implementation of the "new medical reform", health care costs have increased year by year, and the pressure has been passed on to pharmaceutical companies.With the implementation of the supporting policies for the second half of the year, the procurement of medicines will be concentrated and the industry will continue to be under pressure.
Net profit growth for 162 companies
The total revenue growth of the 262 pharmaceutical companies rose about 6 per cent and net profit rose about 8 per cent, the data showed.
Among the 162 companies in the net profit growth, the growth of zhifei biology, northeast pharmaceutical, tiantan biology, zixin pharmaceutical, four-ring biological, garden biology, zhendong pharmaceutical and other 19 companies increased by over 100 percent.The expansion of sales volume, new product launches and extended expansion and tables have become the main reasons for the growth of sales.
Due to the tightening of environmental protection, a number of API enterprises have been suspended production and production limit, which stimulated the price of raw materials, and the net profit of pharmaceutical and garden organisms in northeast China increased significantly.Qiu min, a researcher with the securities and medicine industry in China, believes that the production capacity of raw materials will be further compressed and the price of raw materials is expected to continue.
Net profit growth of 18 companies is between 30% and 100%, including sea king biology, yongan pharmaceutical, Peking University medicine, jiuzhou pharmaceutical, Watson biology, long-life biology, etc.The main reason for the growth is the acquisition of assets and the scale of sales.
In addition, 125 companies were up by 30%.
The 50 companies reported a decline in net profit, including the likes of glencore, shuanglu, jianmin group, dongfulong, hepree, saito biology, xiangxue pharmaceuticals, and step pharmaceuticals.Among them, step long pharmaceutical went public in November 2016.
The pharmaceutical industry faces challenges
In the first half of this year, the growth of pharmaceutical manufacturing income was 10 per cent, returning to double-digit levels, which has recovered from a year earlier.
Yu mingde, President of the China pharmaceutical enterprise management association, told China securities newspaper that the growth in pharmaceutical manufacturing revenue in the first half of 2015 was the lowest in nearly 15 years, with an increase of just 8.76 percent.The growth in industry revenue has fallen below 10 per cent, just before 2000.The situation was due to the lack of medical care in urban workers.In 2003 and 2007, the new rural cooperative medical insurance system was established in 2007. In the current situation of aging demand, it is rare to see the growth rate fall below double digits.
It is understood that as medicare accused of exertion increase year by year, pharmaceutical industry faces huge challenges, hospital medicine proportion is more and more small, flight check to strengthen, drug prices for medicine and ancillary drugs, antibiotics, and strengthening restrictions, such as infusion, a major impact on the pharmaceutical industry.
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