Chemical preparations are pharmaceuticals whose active ingredient is chemically synthesized, in contrast to TCM preparation and biologic preparation. Chemical preparation mainly refers to pharmaceutical preparations, while biologic preparation is mainly vaccines and preparations extracted from animals and plants. The chemical preparation industry is a crucial sub-industry in pharmaceutical manufacturing. It remains at over 25% of the pharmaceutical industry in production value.
The total production value of chemical preparation in China shows a steady growing trend and increased from CNY 150.1 billion in 2006 to CNY 753.5 billion in 2016, with the CAGR of 17.5%. According to CRI, the market demand for chemical preparation in China is strong. Despite the decreasing growth rate in recent years, it still grew by over 10% in 2016.
CRI analysis shows that compared to developed countries, China’s pharmaceutical industry overall faces some problems at present, such as a low concentration rate, small production scale, insufficient R&D investment, lack of core competitiveness and low-level repeated construction in some pharmaceutical enterprises. In general, the marketization of China’s pharmaceutical industry is at a high level with intense competition. After decades of development, China has formed a group of enterprises with considerable scientific research abilities and advanced management and production experience. With the changing regulatory and market environment, enterprises with strong R&D capabilities and technical strength will gradually reach their full potential. In comparison, enterprises with weak R&D capabilities and poor technical level are likely to be weeded out in the new market environment. Consequently, the market will be focused on advantageous enterprises.