Biopharmaceutical industry has broad prospects for development

As one of the seven strategic emerging industries, the prospects for the development of the biomedical industry have attracted considerable attention. Compared with other pharmaceutical sub-sectors, biopharmaceuticals will have a leading position in application prospects and policy support.

At present, a group of biological products companies represented by vaccines have appeared in the securities market, but the entire industry is still in the ascendant and more fields of application are waiting to be developed. According to the reporter's understanding, a group of domestic pharmaceutical companies are making great efforts to march into the industry in an attempt to seize the opportunity.

Industrial market not yet

"The biopharmaceutical market is in the start-up phase." Jiang Linkui, deputy to the National People's Congress and general manager of Harbin Pharmaceutical Group, said in an interview recently that "the biomedical industry has not arrived yet, especially in China. Our R&D investment is late, and market development At the initial stage, and start-up, scientific research institutes have invested a lot, large enterprise market support has not been done enough, and clinical practice has not been enough. Only the market launch can drive production capacity to start, so that the R&D results can be industrialized faster.”

According to Jiang Linkui, Harbin Pharmaceutical Group has already invested heavily in the biopharmaceutical industry, and will invest even more in the next step. "We have formulated a very clear strategy. The technical input during the "Eleventh Five-Year Plan" period is close to 300 million yuan and a national bio-engineering industrial base has been established." Jiang Linkui said, "The second phase of work has already started and the planned investment amounted to 450 million yuan."

It is understood that the profit rate of the biopharmaceutical business that Harbin Pharmaceutical Group has already put into production is very high. According to Jiang Linkui, the profit of this segment of the business is growing at a rate of 100%.

The medical prospect is huge

The application of biotechnology in the medical field has great prospects. Compared with traditional chemical pharmaceuticals, biopharmaceuticals have high research and development efficiencies, greatly shorten the research and development cycle, and have less environmental pollution during the production process.

At present, there are 33 listed companies in the biological products industry, mainly biopharmaceuticals, blood products, and biological reagent companies.

As a non-cyclical industry, the pharmaceutical industry has shown rapid growth in recent years. Since 2005, it has maintained a growth rate of over 20%, of which the sub-sector of biological products has maintained an average annual growth of 27.31%. In the first 11 months of 2010, the cumulative growth of biological and biochemical products in the pharmaceutical industry was 30.55%. Second only to the growth of veterinary drugs, much higher than the growth of medical and pharmaceutical industry operating income.

"12th Five-Year" average annual growth rate of 27%

In addition, the biopharmaceutical industry is also relatively small affected by drug price limits.

The adjustment of drug prices in China's medical reforms for many times has limited impact on the gross profit margin of the biopharmaceutical industry in the pharmaceutical industry, and it is mainly targeted at the adjustment of prices of chemical preparations and chemical drugs. The gross profit margins of biological and biochemical pharmaceuticals have been maintained at 30%. Left and right levels of growth. In addition, inflation has brought about a rise in the cost of raw material materials, Chinese herbal medicines, and decoction pieces, etc. Depending on genetic engineering, enzymes, and peptides, the bioproducts industry, which has low cost pressure, wide spectrum of drugs, poor drug resistance, and small side effects, deserves more attention from investors. .

From an international perspective, the proportion of the biological products industry in China's pharmaceutical industry is still relatively low, accounting for 10.45 percent of the total pharmaceutical industry's total revenue. According to the international mature market accounting for 20% of the industry's total weight, the industry has broad prospects for development.

Some brokers expect that biopharmaceuticals will continue to grow at a high rate for some time to come. The country will invest 40 billion special funds to support the pharmaceutical biotechnology industry during the “12th Five-Year Plan” period, and the average annual growth rate of the industry is expected to reach 27%.

It is worth noting that in the bio-products industry, the vaccine industry is the industry with fast growth, high technology content, huge market demand and stable growth. At present, China is the world's largest producer of vaccines. However, the annual revenue of vaccines in China accounted for less than 0.73% of the total income of the pharmaceutical industry in 2008. This means that there is a huge potential for growth in the future of the vaccine industry, especially new vaccines.

People in the industry believe that those well-established biotechnology research platforms have independent research and development capabilities. The development and production of products meet the changing trend of the disease spectrum, the application space is large, the product has high gross margins, high technical barriers, and there are new product reserves and growth in the coming years. A good company deserves the most attention.

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