In China's OTC market, multinational pharmaceutical companies will invest more and more
2021-02-19 09:20:03
Business Club December 6th, "Globally, the main market for OTC drugs is in Western Europe. However, observing the contribution of the annual growth of the OTC market, we can see that the contribution made by the Asia-Pacific region has reached a very impressive level, close to 40%. This is why multinational corporations are adjusting their market strategies and adjusting their investment directions, especially in China. I believe that more and more multinational companies will invest more in China.†IMS Minister of Global Medicine Research and Development China Region Lin Yue said earlier this morning.
Lin Yuechen said that the global pharmaceutical market has suffered various challenges in the past few decades: the market share of the top ten companies is declining, and the top ten companies accounted for 37% of the pharmaceutical market share in 2003, but it was 2007. In 2010, the top ten companies accounted for only 23%; the number of drug research and development in the world is constantly decreasing, and the development cost of each drug is multiplying, but the failure ratio is increasing; in addition, a large number of patents for blockbuster drugs After one year's expiry, many large companies’ product lines face enormous challenges, especially the challenges of many generic drugs being listed. In addition, medical insurance is also a problem faced by every country, and the paying parties are facing funding shortages. However, these issues have a relatively small impact on the OTC market.
Although the OTC market accounted for only 11.5% of the global pharmaceutical market, the OTC industry’s growth was driven by the conversion of prescription drugs to OTC, the establishment of brands, the expansion of numerous commercial channels, and the support of individual government agencies for self-medication. The speed is significantly faster than the growth rate of the entire pharmaceutical market.
One notable phenomenon is that in 2009, the global growth rate of the OTC market was 5.8%, but only two of the world’s top ten OTC companies are close to the global growth rate. The top ten OTC companies have a 30% market share in the global market, but they only perform better in North America and Western Europe. In the Asia Pacific market, their leading edge is not obvious. "Many multinational companies are rethinking that after emerging markets in developing countries rise, they will increase investment in these regions. Because these regional growth will bring about a big boost to the growth of the global OTC market," said Lin Yuechen.
She believes that in the world's major OTC markets, China, Russia, Brazil, and India are all large populous markets in addition to traditional Western Europe and the United States, and occupy a prominent position in the global market. In 2009, the global pharmaceutical market has reached more than 800 billion U.S. dollars. The growth rate of developed countries is all single-digit, while China has reached more than 20%, far exceeding the markets of Russia, India, Turkey, South Korea and other emerging countries. Lin Yuechen said that in China, 70% of OTC products are sold through retail terminals. In the retail channel, the best-performing OTC drugs are cold coughs, followed by vitamins, minerals, and digestive drugs. The growth rate exceeds the average growth rate of the pharmaceutical market.
“In the 22 cities' retail markets, we currently see that foreign-funded companies are the main products, but some large domestic companies also account for the top 10. While observing the growth rate of the entire industry, we can see that before The average growth rate of ten companies does not reach the average growth rate of the entire market, that is, outside the top ten companies, there are a large number of competitors competing in the market. Although the companies that are currently leading are still leading, they also occupy Very strong position, but the latecomers are faster." Lin Yuechen said.
Lin Yuechen said that the global pharmaceutical market has suffered various challenges in the past few decades: the market share of the top ten companies is declining, and the top ten companies accounted for 37% of the pharmaceutical market share in 2003, but it was 2007. In 2010, the top ten companies accounted for only 23%; the number of drug research and development in the world is constantly decreasing, and the development cost of each drug is multiplying, but the failure ratio is increasing; in addition, a large number of patents for blockbuster drugs After one year's expiry, many large companies’ product lines face enormous challenges, especially the challenges of many generic drugs being listed. In addition, medical insurance is also a problem faced by every country, and the paying parties are facing funding shortages. However, these issues have a relatively small impact on the OTC market.
Although the OTC market accounted for only 11.5% of the global pharmaceutical market, the OTC industry’s growth was driven by the conversion of prescription drugs to OTC, the establishment of brands, the expansion of numerous commercial channels, and the support of individual government agencies for self-medication. The speed is significantly faster than the growth rate of the entire pharmaceutical market.
One notable phenomenon is that in 2009, the global growth rate of the OTC market was 5.8%, but only two of the world’s top ten OTC companies are close to the global growth rate. The top ten OTC companies have a 30% market share in the global market, but they only perform better in North America and Western Europe. In the Asia Pacific market, their leading edge is not obvious. "Many multinational companies are rethinking that after emerging markets in developing countries rise, they will increase investment in these regions. Because these regional growth will bring about a big boost to the growth of the global OTC market," said Lin Yuechen.
She believes that in the world's major OTC markets, China, Russia, Brazil, and India are all large populous markets in addition to traditional Western Europe and the United States, and occupy a prominent position in the global market. In 2009, the global pharmaceutical market has reached more than 800 billion U.S. dollars. The growth rate of developed countries is all single-digit, while China has reached more than 20%, far exceeding the markets of Russia, India, Turkey, South Korea and other emerging countries. Lin Yuechen said that in China, 70% of OTC products are sold through retail terminals. In the retail channel, the best-performing OTC drugs are cold coughs, followed by vitamins, minerals, and digestive drugs. The growth rate exceeds the average growth rate of the pharmaceutical market.
“In the 22 cities' retail markets, we currently see that foreign-funded companies are the main products, but some large domestic companies also account for the top 10. While observing the growth rate of the entire industry, we can see that before The average growth rate of ten companies does not reach the average growth rate of the entire market, that is, outside the top ten companies, there are a large number of competitors competing in the market. Although the companies that are currently leading are still leading, they also occupy Very strong position, but the latecomers are faster." Lin Yuechen said.
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