[September 04, 2008]

www.companiesandmarkets.com: China Pharmaceutical Chain Industry Report 2007 to 2008

(M2 PressWIRE Via Acquire Media NewsEdge)
RDATE:03092008

-www.companiesandmarkets.com adds new report: China Pharmaceutical
Chain Industry Report 2007 to 2008

Pharmaceutical industry is called as eternal sunrise industry , mainly
because of its sustained growth in market demand. The main factors
driving the growth in market demand of China's pharmaceutical industry
include economic growth, improved people's awareness of self-health
care, the process of aging population and urbanization and full
start-up of health system reform, which has greatly promoted the
ability and willingness of medical consumption. China's demand for
medical industry in the future will maintain a rapid growth. According
to the forecasts of IMS, China will become the seventh largest
pharmaceutical market in the world in 2009 and will jump to the second
largest one with a market capacity of US$220 billion after the U.S.A.
in 2020. According to the latest statistics of the National Bureau of
Statistics, the sales revenue of China's pharmaceutical industry in the
first five months of this year revenue reached CNY271.78 billion, up
26.63% year on year. In 2007, the sales revenue reached CNY575.4
billion, rising 21.5% year on year.

The average growth rate of sales revenue of China's pharmaceutical
industry in the recent ten years exceeded 20%, far higher than GDP
growth rate in the same period. Moreover, the profit growth rate of
China's pharmaceutical industry in the past two year was much higher
than the growth rate of sales revenue. The total profit of China's
pharmaceutical industry in the first eleven months of 2007 reached
CNY49.9 billion, jumping 51% year on year. In 2008, the industry
continued maintaining the momentum of fast growth, and the total profit
of the industry in the first five months of this year stood at CNY26
billion, 41.4% year on year, which is mainly attributed to government
support and industry restructuring. Due to impact of many factors
including mainly price competition and market disorder, China's
pharmaceutical chain industry was in the doldrums in the past four
years in general. However, the industry had a turn for the better in
2007 after experiencing industry restructuring and gradually improved
corporate operation in 2006.

In 2007, net profit rate of China Top 100 pharmaceutical chain
companies reached about 3%, higher than that in the previous year, and

the growth rate of profit reached 56.2%, far higher than the growth
rate of sales revenue. Although we are optimistic about our forecast of
potential of market development, too fast expansion of pharmaceutical
chain industry in large cities like Beijing, Shanghai, Guangzhou and
Shenzhen has made market in these large cities tending to be saturated.
Rising cost, price competition, new medical reform and other factors
have made medium- and small-sized drugstores more and more difficult to
survive. It is increasingly clear that China should further restructure
its pharmaceutical chain industry to raise industrial concentration
degree, which is a very good opportunity for those powerful companies
to further strengthen their presence in the industry. . The report is
based on the authoritative statistics from the National Bureau of
Statistics, the Ministry of Health, the State Food and Drug
Administration, the China Association of Pharmaceutical Commerce and
China Drugstore website as well as information from annual financial
reports and websites of some key companies.

http://www.companiesandmarkets.com/information.asp?id=QENXT4UMC48029

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Fax: +44 1933 674 780
e-mail: info@companiesandmarkets.com
WWW:
http://www.companiesandmarkets.com/information.asp?id=QENXT4UMC48029

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