Due to the improvement of relationship between supply and demand, the pharmaceutical industry market rebound and performance restores to the good level. In March 2012, the revenues and profits of the pharmaceutical industry maintain rapid growth.
The total profit increases by 51.1%. The industry loss ratio decreased by 2.1 points and the gross margin increased by 0.6 points. Meanwhile, the total profit rate rose by 1.8 points. Upstream profit is lower than the downstream. Chinese medicines’ ability to absorb the cost is excellent and the profit’s increasing rate is largest. Due to rising price of raw materials, gross margins of bulk drugs and western medicine have declined.
Bulk raw materials’ supply and demand and the price raising are due to China's environmental protection enforcement. Some capacity reduce the supply and demand imbalance, as the representative of the bulk of feed grade vitamin raw material prices generally rose, the rate of increase of 50-200%; such products industry concentration is relatively high, relatively large dependence of the international market for 2-3 years, low-profit, international and domestic part of the capacity constraints as the main feature.
Pharmaceutical raw materials industry’s revenue growth is 25-26%. The profit growth of 17-18%. Some studies show that the new rural cooperative, Metro together will promote the medicine to bring the explosive growth in 2012 profit growth of 50%. Rural areas of 1.25 times / person's attendance rate does not mean that the consumer repressed, rural health care spending accounted for the proportion of consumer spending is only 0.3 points lower than in urban, rural health care cost increases, and hospitals for treatment, the rate of decline in the farmers to choose high-end the results of health resources. Government and social spending instead of personal health expenditures, and will not bring significant explosive growth. Experts said 2012 revenue growth of 25-26%, 17-18% of the total profit increase.
Bulk raw material’s price is stable. The characteristics raw material’s price increases and the volume rises. Because some bulk margins are relatively high, the profit rate of the downstream feed fell. The price rising of bulk raw material irinotecan lacks of power. But due to the continuous strengthen of China's environmental protection policy, in 2012 the production capacity can not be raised greatly. And possibility of price decline is not large. For the bulk of raw materials, its price should be stable and the gross profit margin decreased slightly. For Chinese dependent characteristics of bulk drugs, there is the driving force for prices rising. The environmental policy will accelerate the industry’s centralized process.Source:http://www.cospcn.com
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