The China Association of Pharmaceutical Enterprises Management (CAPEM) has released a comprehensive set of data detailing the operational status of China’s pharmaceutical industry in the first half of 2024. The statistics indicate that the added value of the pharmaceutical industry above designated size increased by 1.2% year-on-year (YOY). Revenues for enterprises above designated size reached RMB 1446.55 billion, marking a 1.4% YOY decrease, while profits amounted to RMB 211.12 billion, a 1.2% YOY decrease. The growth rates of these three indicators are respectively 4.8, 4.3, and 4.7 percentage points lower than the overall industrial growth rate of the country, reversing the industry’s leading position it held for many years. Positive changes are observed on a quarterly basis, with major economic indicators improving since the second half of 2023, industrial added value returning to positive growth, and the decline in revenue and profit narrowing.
The operating revenue for chemical raw materials (-1.6%) and chemical preparations (-0.3%) slightly decreased, but profits increased. Traditional Chinese medicine decoction pieces (+6.1%) is the only sub-industry achieving growth in both revenue and profit. Biological products (+0.7%) saw its operating revenue recover, overcoming the impact of COVID-19 vaccines. However, four sub-industries, including traditional Chinese patent medicines and simple preparations, health materials and medical supplies, medical instruments and equipment, and pharmaceutical special equipment, all showed negative growth in operating income and profit.
Medical innovation continues to yield results, with 23 domestically produced innovative drugs approved for marketing in the first half of 2024, comprising 12 chemical drugs, 5 biological drugs, and 6 traditional Chinese medicines (TCMs). Chemical drugs accounted for a large proportion, with the treatment field mainly focusing on tumor drugs. Domestic pharmaceutical companies concluded at least 30 licensing-out deals in the field of innovative drugs, with a total amount exceeding USD 20 billion.
Pharmaceutical exports have achieved growth despite the complex international market environment. In the first half of the year, the export volume of pharmaceutical products reached USD 52.579 billion, up 1.91% YOY. Export volumes to the top three markets, including the “Belt and Road” countries, the European Union, and the United States, increased by 3.59%, 3.8%, and 5.21% YOY, respectively. Enterprises above designated size achieved a year-on-year increase of 5.1% in export delivery value.
However, the industry as a whole still shows negative growth, and the investment and financing environment is further cooling down. In the first half of the year, loss-making enterprises accounted for 32.3% of the pharmaceutical industry enterprises above designated size, up 8.5% YOY. The pharmaceutical industry completed approximately 400 VC/PE investment and financing projects in the primary market. In terms of the secondary market, only four pharmaceutical industry companies were listed on the Shanghai Stock Exchange or Hong Kong Stock Exchange. Various regions introduced policies and measures to further support the full chain development of the pharmaceutical industry, which is expected to accelerate industrial restructuring and upgrading, and promote the recovery of the pharmaceutical industry to develop stably.- Flcube.com
