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A Study on Development of Pharmaceutical Industry in the Post-medical Reform Era

Author: LiuXiaoHua
Tutor: ChenJiXiang
School: Shanghai Jiaotong University
Course: Business Administration
Keywords: Zhejiang Pharma medical reform industrial development strategy
CLC: F426.72
Type: Master's thesis
Year: 2010
Downloads: 613
Quote: 0
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Abstract


The objective of this thesis is the pharmaceutical industrial development strategy. It is well known that the pharmaceutical industry is a high investment, high risk and high income industry. The pharmaceutical industry is considered as the extremely important production industry due to its relation to human living and health. The population nature growth especially old age population growth are the fundamental factors of growing demand in the medicine market. The global pharmaceutical industry growth was speeded up by global economic development, human health demand and technical progress.This thesis introduced the status and development trend of pharmaceutical industry in China and the world. It analyzed new launched pharmaceutical guideline and policies and inferred their effects on development and strategy of pharmaceutical industry in China. Taking Zhejiang Pharmaceuticals as an example, this thesis stated most problems and solutions. After rough process, the pharmaceutical industry of China got through the introductive period and has entered a period of high speed development which is typically characterized by fast growth and low profit. In the next decades, it will still keep a tendency of steady growth. However, the enterprises and production in China’s pharmaceutical industry are not so competitive. Over competition within the industry and inability of innovation have been its bottlenecks and targets of medical reform.New medical reform adopted many measurements to solve the problem, such as price limitation, bidding centralization, reformations for price-making, register mechanisms and GMP & GSP certification. With new medical insurance reformation, medical system and pharmaceutical system was analyzed using PEST model. Hence, macro-environment factors which would influence pharmaceuticals distribution were generated. It is concluded that pharmaceutical industry is a“sun rising”industry while pharmaceuticals distribution play an important role in the whole pharmaceutical value chain. However, recent policy will hurdle the development of pharmaceuticals distribution.“Five Forces”model was also employed to determine factors of an industries’attractiveness. The reason for keen competition was analyzed from competition environment, especially from threat of new entrants, power of buyers, and power of suppliers. This thesis investigated the basic situation and history of the marketing channel of pharmaceutical enterprise. According to these investigations, this thesis put forward some measures for pharmaceutical enterprise’s development. It is found that China’s pharmaceutical industry will speed up the readjustment of the industrial structure through merging and acquisition to enhance their competitive strength and increase the market concentration rate.This thesis analyzed the development trend of pharmaceutical distribution from industry level and concluded that every pharmaceutical distribution company should find its own position in industry, and develop only with innovation and reformation under current situation. Suggestions were given to support the development of the typical company in this study - Zhejiang Pharma.

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