Current Situation and Development Trend of my country's Pharmaceutical Industry

The pharmaceutical industry is one of the 15 types of internationalized industries classified according to international standards, and one of the fastest-growing sunrise industries in world trade. In the 1970s, the output value of the world's pharmaceutical industry grew by an average of 13%, 8.5% in the 1980s, and 7.5% in the 1990s, and it is expected to remain at around 7% between 2001 and 2010. Since the reform and opening up, the average annual growth rate of the output value of my country's pharmaceutical industry has been around 16.6%. The speed of development (average annual growth rate of 17%). The overall scale of my country's pharmaceutical industry ranks 18th to 20th among the 36 industries in the national economy, which belongs to the middle level. In 2001, the total value of my country's pharmaceutical industry was 277 billion yuan, accounting for 2.9% of my country's GDP; in 2002, the total value of my country's pharmaceutical industry was 330 billion yuan, accounting for about 3.2% of my country's GDP. The pharmaceutical industry as a whole is showing a good development trend.

1. Basic situation of my country's pharmaceutical industry

According to the 2001 statistics on the renewal of drug production enterprise licenses nationwide, there are currently 5,146 manufacturers of raw materials and pharmaceutical preparations in my country, including more than 1,700 "foreign-funded" enterprises (the top 20 multinational pharmaceutical companies in the world have all established joint ventures in my country. set up factories). There are about 1,100 state-owned and state-holding industrial enterprises. Calculated by output value, the proportion of the joint-stock economy in the entire industry has risen from 12% at the beginning of the "Ninth Five-Year Plan" to the current 33.2%, the "foreign capital" economy has risen from 15% to 18.8%, while the proportion of the state-owned economy has dropped from 55%. to 36.1%. The ownership structure of the pharmaceutical industry has been further adjusted, basically forming a pattern in which public ownership is the mainstay and multiple ownerships develop together. Among the more than 5,000 pharmaceutical industry enterprises, there are more than 200 biopharmaceutical enterprises, more than 1,100 traditional Chinese medicine manufacturers and about 4,000 chemical drug manufacturers. By the end of 2001, nearly 1,500 kinds of chemical raw materials could be produced, with a total output of 430,000 tons, ranking second in the world; 34 dosage forms and more than 4,000 varieties of chemical preparations could be produced; and traditional Chinese medicines in my country have gradually become Following a scientific and standardized road, it can produce more than 40 kinds of modern Chinese medicine forms including dripping pills, aerosols, and injections, with a total output of 370,000 tons and more than 8,000 varieties. In addition, my country can produce more than 300 kinds of biological products such as vaccines, toxoids, antiserum, blood products, in vitro and in vivo diagnostic reagents, including 20 kinds of modern bioengineering drugs; about 900 million people/parts of preventive products can be produced. my country can also produce more than 11,000 varieties and specifications of medical devices including X-ray tomography imaging devices, magnetic resonance devices, etc.; it can produce 8 categories of pharmaceutical machinery products with more than 1,200 specifications.

Judging from the market behavior and brand development of my country's pharmaceutical companies, due to the excessive development of enterprises and the large number of companies, there is a serious surplus of essential drugs, and the total product supply exceeds demand. Moreover, most of the famous drug brands are foreign brands, and their market share is higher than that of domestic brands. Judging from the current domestic market share, the products of "foreign-funded" enterprises accounted for 25%, imported products accounted for 12%, and domestic products accounted for 35%. However, the drugs of "foreign-funded" enterprises and imported drugs purchased by large hospitals in big cities are as high as 60%. %~70%. It can be seen that foreign-funded products have a great impact on the Chinese pharmaceutical market. According to statistics, at present, among the medicines used in provincial TCM hospitals in my country, the ratio of Chinese herbal decoction pieces, Chinese patent medicines and western medicines is 3:3:4, the ratio of prefecture-level and city-level is 2:3:5, and the ratio of county-level is 1.8: 3: 6.2. In 2001, in my country's pharmaceutical market, Western medicine, Chinese patent medicine, other health care products and biological products accounted for about 60%, 25% and 15% respectively. Domestic enterprises, "foreign-funded" enterprises and foreign enterprises accounted for 43.0%, 29.0% and 28.0% of my country's pharmaceutical market in 1999, and 47.1%, 30.0% and 22.9% in 2000. In 2000 and 2001, "foreign-funded" enterprises, domestic enterprises and foreign enterprises accounted for 30%, 23%, 47% and 43%, 35%, 22% respectively in the hospital drug market. According to statistics, in 2002, in my country's drug retail terminal market, hospital sales and pharmacy sales accounted for 80% and 20% respectively, and hospital sales still dominated.

2. Problems in my country's pharmaceutical industry

Although my country's pharmaceutical industry has made great progress since the reform and opening up, there are still many problems.

2.1 The phenomenon of "one small, two high and three low" exists in my country's pharmaceutical manufacturing enterprises

2.1.1 "Small" refers to the small scale of most production enterprises. According to statistics, among the more than 5,000 pharmaceutical manufacturing enterprises in my country, almost 90% are small enterprises. In 2001, there were only 25 Chinese medicine enterprises among the top 500 large enterprises in the country. According to the statistics of the China Pharmaceutical Business Association, in 2001, there were only 2 pharmaceutical companies with annual sales exceeding 5 billion yuan, 10 companies with sales exceeding 2 billion yuan, 23 companies with sales exceeding 1 billion yuan, and about 250 companies with sales exceeding 100 million yuan. Its number is less than 4% of the total number of pharmaceutical commercial enterprises.

2.1.2 "Two-many" refers to a large number of enterprises and repeated products. Among the more than 5,000 pharmaceutical manufacturing enterprises in my country, most of them have few brand-name products, and the phenomenon of similar varieties is common. Taking biopharmaceuticals as an example, α-interferon alone is produced by more than 10 companies including Shenzhen Kexing, Shenyang Sansheng, Anhui Anke, and Tianjin Hualida, and IL-2 is produced by 9 companies. Another example of traditional Chinese medicine, Niuhuang Jiedu Tablets is produced by more than 150 enterprises across the country. There are also some new products, such as clarithromycin, roxithromycin, azithromycin and levofloxacin, etc., repeated production and blind expansion are also very prominent. There are more than 50 manufacturers, so that the supply of these new products exceeds demand. And old products such as vitamin C also have the problem of blindly expanding the production scale, resulting in product prices falling again and again, and even on the verge of loss.

2.1.3 "Three lows" means that most of the production enterprises have low product technology content, low new drug research and development capabilities, low management capabilities and low economic benefits. From the perspective of research and development of new drugs, it usually takes about 10 years to develop a new drug, which costs about 500 million to 1 billion US dollars in western developed countries, and at least 200 million to 500 million yuan in my country. However, the funds dedicated to the development of new drugs in my country are only 10 million to 20 million yuan per year. In addition, the funds invested by pharmaceutical companies themselves are less than 1% of the output value of the pharmaceutical industry. The level of preparations is low and there are few innovative drugs. 97% of the chemicals produced in my country are generic drugs. By 2001, there were only two innovative drugs independently developed by my country that had gained international recognition: artemisinin and sodium dimercaptosuccinate. At present, my country is still mainly based on the introduction of imitation. This situation has led to further deterioration of market competition, making enterprises unable to enter the track of healthy development, thus limiting the development of my country's pharmaceutical industry.

2.2 Part of the pharmaceutical industry enterprises failed to meet the GMP standard, seriously hindering the entry of Chinese medicines into the international market

Our country has implemented GMP management for nearly 20 years. Although certain achievements have been made, there are still many problems, such as the enterprise workshop can not meet the GMP requirements, the professional knowledge and production skills of production technicians are not high, the production process and operation The formulation and implementation of the regulations are not scientific and strict enough, which leads to low product quality and cannot well protect people's life, health and safety. According to statistics, as of January 2003, only 1,464 manufacturing companies had obtained 1,892 GMP certificates, and about 4,000 pharmaceutical companies had to pass GMP certification before June 30, 2004, otherwise they could only be eliminated. Moreover, a small number of enterprises that have passed GMP certification also have certain violations in the implementation of standards, which not only restricts the improvement of drug quality, but also seriously hinders the entry of Chinese drugs into the international market. Pharmaceutical companies should actively introduce the ISO9000 quality management system, improve their market access standards, and act in accordance with GMP norms, so as to make their products more competitive and actively create conditions for entering the international market.

2.3 The situation of intellectual property protection of pharmaceuticals in my country is not optimistic

my country has implemented 20-year patent protection for drugs since 1993. It should be admitted that for decades, Chinese pharmaceutical companies have been accustomed to imitating drugs from other countries, lack of motivation for innovation, and weak ability to create new drugs. At the same time, due to the indifferent concept of intellectual property protection, some of our original innovative achievements have not been greatly improved. Good protection, which makes us have to swallow the bitter fruit we planted. For example, Chinese medical science and technology personnel successfully developed a new chemical drug artemisinin in the 1970s after more than ten years of hard work. The drug is a major invention in the field of medicine in my country, and it is also the only new chemical drug independently developed in the field of medicine in my country before 1998 that has been recognized by the world. However, since my country did not have the necessary conditions for intellectual property protection at that time, when the research paper on artemisinin was published, foreign companies immediately carried out structural transformation and applied for patents. Originally an invention of our country has become a foreign patent, and this alone in our country has an export loss of 200 to 300 million US dollars every year. Another example is that the invention of the two-step fermentation method of vitamin C in my country is also an invention of international advanced level, but due to the lack of awareness of intellectual property protection, a company that originally wanted to buy this preparation for 5 million US dollars After learning that the technology did not apply for a patent, the foreign company of the technology took advantage of it, and bought the paper back for only a few tens of yuan. A few years later, vitamin C produced by foreign countries with this low-cost technology was dumped to the international market in large quantities, squeezing the export price of vitamin C in my country, causing great losses to our country, and causing some domestic production enterprises to fall into trouble. Therefore, how to use intellectual property agreements to stimulate, protect and develop my country's pharmaceutical industry has become an urgent task for my country's pharmaceutical companies.

2.4 Single financing channel and insufficient funds for industrial development

Compared with other industries, the pharmaceutical industry has "four highs": high investment, high return, high risk, and high technology-intensive, especially in some bioengineering pharmaceutical industries such as genetic engineering. At present, the sources of funds for my country's high-tech pharmaceutical industry mainly rely on bank loans in addition to the equity capital invested by shareholders, and the financing channels are narrow. Because banks pay great attention to the safety and liquidity of funds, the risks of high-tech investment make banks cautious. Therefore, the financing ability of pharmaceutical companies is obviously not strong, and there is a serious shortage of funds. The serious shortage of development funds has become a huge obstacle for pharmaceutical companies to develop new drugs, update equipment, and open up markets.

2.5 The competition in the pharmaceutical market is disorderly, and there are unhealthy tendencies in the industry

With the formation of market economy, some new changes have appeared in my country's pharmaceutical market. The unreasonable distribution of profits in all aspects of drug purchase and sales, coupled with the fact that the same product is produced by multiple manufacturers, has forced companies to adopt high-priced and high-profit promotion methods. In recent years, the percentage of profits that hospitals buy from drug sales companies is about 18% of the drug price, while the percentage of profits from direct purchases from drug manufacturers has reached more than 25%. The drug market environment continues to deteriorate, and drug prices continue to rise, which greatly damages the interests of patients. And enterprises are also forced by market pressure to spend their main energy on market competition, unable to take into account technological innovation. After entering the World Trade Organization, if this kind of disorderly competition and unhealthy trends in the industry continue, it will be difficult for Chinese pharmaceutical companies to adapt to the international market.

To sum up, although my country's pharmaceutical industry has developed to a certain extent in the past 20 years, there are still many problems. In order to keep pace with the development of the world's pharmaceutical industry, the entire industry must expand its scale, shut down and stop some small pharmaceutical companies, and avoid redundant construction. In order to further improve the relevant systems, establish and improve a modern enterprise management system suitable for my country's national conditions, so as to promote the further development of my country's pharmaceutical industry.

3. The development trend of my country's pharmaceutical market

3.1 The pharmaceutical economy will continue to show a steady growth trend

The total value of my country's pharmaceutical industry from 1990 to 2001 was 392, 502, 634, 746, 862, 1060, 1251, 1400, 1630, 1946, 2332, and 270 billion yuan, with an average annual increase of 19.5%; from 1990 to 2001 The annual total sales of pharmaceuticals are 151.42, 176.67, 208.13, 231.34, 373.91, 464.04, 532.03, 607.29.776.87.922.90, 108.45, and 126 billion yuan, with an average annual growth rate of 21.7%. In 2002, the total value of my country's pharmaceutical industry was 330 billion yuan, an increase of 18.8%, which was more than 10 percentage points higher than the growth rate of the national economy. The development goal of the "Tenth Five-Year Plan" of the pharmaceutical industry is to increase the total output value of the pharmaceutical industry by an average of about 12% per year. There are certainly reasons for maintaining such a high rate of development.

3.1.1 The natural growth of population is the basic factor for the increase of demand in the pharmaceutical market: in 2000, my country's population was 1.295 billion, and by 2005 my country's population will reach 1.33 billion. The net population growth will generate new demand for pharmaceutical products. Moreover, according to the fifth national census data in 2000, my country's elderly (over 60 years old) population is close to 130 million, accounting for about 10% of the total population, and China has entered the ranks of aging countries. In the future, the elderly population will grow at an annual rate of about 3%. It is estimated that by 2005, the total number of elderly population in my country will reach 160 million, accounting for 11.52% of the total population; in 2025, it will increase to 280 million, accounting for 17% of the total population will exceed 400 million by 2050, accounting for 27% of the total population, and reaching the peak. At present, the drug consumption of the elderly population has accounted for more than 50% of the total drug consumption, and the aging population has further promoted drug consumption.

3.1.2 The continuous improvement of people's living standards has further promoted the demand for drugs: the annual per capita drug use levels in my country from 1990 to 2001 were 13, 15, 18, 20, 31, 38, 43, 50, 62, 74, 85, 99 yuan. At present, the level of drug consumption in my country is still very low, while the per capita drug consumption in moderately developed countries is between US$40 and US$50. However, it can be seen from the above figures that with the continuous development of the national economy and the continuous improvement of people's living standards, the per capita drug use level in my country is also increasing year by year. Through the further development of the vast rural market, China's pharmaceutical market will also show greater room for development.

3.2 New changes will take place in the drug consumption structure

3.2.1 The drug structure is becoming more reasonable: the implementation of the new medical insurance system and the introduction of the new "medical reform" plan will have a major impact on the adjustment of the drug structure in my country. Modern biotechnology drugs, natural drugs, and marine drugs may challenge the conventional status of chemicals. Good curative effect and low price are two factors that patients must consider when taking medicine. Therefore, the sales volume of high-efficiency and low-priced drugs will continue to increase, occupying a larger market share. The retail market is also expanding day by day. At present, the wholesale and retail structure of the national pharmaceutical market is gradually changing. The proportion of retail sales of pharmaceutical products has increased from 5% in the past to more than 15%, and in a few areas it has risen to 20% to 30%. It is expected that this momentum will further expand with the reform of the medical system and the implementation of the classification management system for prescription and non-prescription drugs.

3.2.2 Non-prescription drugs will enter a stage of rapid development: Drug classification management will bring about changes in the structure of drug demand. The sales volume of my country's non-prescription drug market is very impressive. It was 250 million US dollars (equivalent to RMB 1.91 billion) in 1990, and rose to 1.010 billion US dollars (equivalent to RMB 8.38 billion) in 1994, an increase of more than three times within 4 years. In 1996, my country's non-prescription drug market sales rose to 1.3 billion US dollars (equivalent to 10.79 billion yuan), and it has become the fastest growing country in the world's non-prescription drug market. According to statistics, in 2001, my country's non-prescription drug market sales exceeded 24 billion yuan, accounting for 20% of the total drug sales. Although my country's per capita consumption of non-prescription drugs is currently lower than the global per capita consumption of non-prescription drugs, with the deepening of the reform of the medical system, the continuous enhancement of people's awareness of self-medication, and the further implementation of the drug classification management system, my country's non-prescription drug market has shown strong development momentum. Relevant experts predict that by 2005, my country's non-prescription drug sales are expected to reach 60 billion yuan, and by 2020 my country will become one of the world's largest non-prescription drug sales markets.

3.3 Drug prices are becoming more reasonable

In the past few years, the phenomenon of falsely high drug prices in my country was relatively serious, but this phenomenon will basically be reversed in the next few years. Affected by the country's increased control over drug prices and the intensification of market competition, drug prices have continued to decline in recent years. According to data from the National Bureau of Statistics, since 1997, the State Planning Commission has lowered the prices of centrally managed drugs 10 times, and the price cuts have reached more than 200 varieties. The increase in the retail price index of Chinese and Western medicines gradually dropped from 8.8% in 1996 to 0.3% in 2000, and -1.5% in 2001, the first negative growth. In 2002, the drug price index dropped further, from January to March to -2.7%, -3.4% and -3.7% respectively. Drugs are commodities with relatively high demand elasticity. When the price falls, the demand will also increase significantly. However, for the industry, whether the increase in sales volume can offset the decrease in sales revenue caused by the price drop will directly affect the economic benefits of the pharmaceutical industry. From the perspective of short-term effect, the effect of price drop exceeds the effect of demand growth, which has indeed had a relatively large negative impact on the performance of pharmaceutical companies. Some companies have difficulty in sustaining production, and some companies have to apply to the Planning Commission for re-pricing. According to relevant sources, the State Planning Commission is consulting all parties on the issue of medical prices. The author believes that the possibility of introducing a new policy will not be ruled out, and the new policy will definitely take into account the negative effects of the previous price cuts, and eventually make the price of medicines more stable. Reasonably, while ordinary people benefit, the interests of pharmaceutical companies can also be protected.

3.4 The number of pharmaceutical companies will be greatly reduced, and the business scale will gradually expand

my country's pharmaceutical industry has long been plagued by stubborn diseases such as many enterprises, small scale, high cost, and low benefit. After joining the WTO, market competition will intensify, some companies will be merged and reorganized, some companies will have to withdraw from the market, and the "territory" of China's pharmaceutical market will also be re-divided. The result of this survival of the fittest is that the number of pharmaceutical companies is decreasing year by year. In 2001, small pharmaceutical factories accounting for about 10% of the total number of pharmaceutical companies were eliminated, and in 2002, about 10% of small pharmaceutical factories can be eliminated. According to relevant experts' prediction, after the "Tenth Five-Year Plan", Chinese pharmaceutical companies will decrease by 25% to 35%. The state's corporate organizational structure target for the development of the pharmaceutical industry during the "Tenth Five-Year Plan" period is also adjusted to: on the basis of existing large-scale enterprise groups, focus on cultivating about 10 companies with a sales volume of 5 billion through stock listing, mergers, alliances, and reorganizations. The annual sales of these enterprises account for more than 30% of the total sales of the national pharmaceutical industry enterprises, and their main products have the ability to compete with international multinational companies; cultivate 5 to 10 diversified operations for domestic and foreign markets , super-large pharmaceutical distribution enterprise groups with annual sales of more than 5 billion yuan; establish about 40 large-scale pharmaceutical distribution enterprise groups that are oriented to the domestic market or domestic regional markets, with annual sales of more than 2 billion yuan. The sales of these enterprises Accounting for more than 70% of the total sales of the pharmaceutical industry; establish 10 well-known pharmaceutical retail chain enterprises at home and abroad, each with more than 1,000 branches; establish a group of regional pharmaceutical retail chain enterprises, each with 100 branches about. With the deepening of enterprise reform and the adjustment of industry structure, a large number of large companies and large groups with listed companies as the main body will stand out in the next few years. Expansion, forming a strong strength, is expected to remain invincible in the global market competition.

3.5 The structure of the pharmaceutical market continues to develop in a diversified and multi-level direction

3.5.1 Diversification of the economic structure of the pharmaceutical market: Calculated in terms of output value, the proportion of the joint-stock economy in the pharmaceutical industry has risen from 12% at the beginning of the "Ninth Five-Year Plan" to 33.2% at present, and the "foreign capital" economy has increased from 15%. rose to 18.8%, and the state-owned economy dropped from 55% to 36.1%. The ownership structure of the pharmaceutical industry has been further adjusted, basically forming a pattern in which public ownership is the mainstay and multiple ownerships develop together. Among pharmaceutical enterprises, domestic enterprises, "foreign-funded" enterprises and foreign enterprises accounted for 43.0%, 29.0% and 28.0% of my country's pharmaceutical market in 1999, and 47.1%, 30.0% and 22.9% in 2000. Under the premise that the domestic pharmaceutical market is dominated by the state-owned pharmaceutical economy, various types of collective economy, share economy, "three capitals" and "cooperative" economies are developing together. This diversified pharmaceutical economic structure is of great benefit to the active pharmaceutical market.

3.5.2 The composition of the pharmaceutical market is multi-level: it includes an open market characterized by bidding, a semi-open market based on pharmaceutical contracts, a closed market based on national plans, and a retail market characterized by free purchases and sales. The market is all guided by the pharmaceutical market, which fully reflects the relationship between supply and demand and the law of value.

3.5.3 Diversified demand for medicines: With the improvement of living standards, people purchase more and more medicines and health food. Buyers and sellers with financial support have a special preference for high-end drugs and new drugs, while middle and low-level buyers and sellers still occupy most of the drug market share. In terms of capital investment, buyers and sellers have different investment proportions in production, supply, sales, research and use, forming a new buying and selling pattern. For example, the sales of major categories of medicines in the country have shown the following changes in the past two years: the amount of drugs used by the elderly, women, and children has increased, and the amount of drugs used by adults has decreased; the demand for new varieties has increased, and the demand for old varieties has decreased; The consumption of high-quality patent medicines increased, while the consumption of general medicinal materials and patent medicines decreased; the consumption of joint venture medicines increased, and the consumption of imported medicines decreased.

3.6 The development of modern pharmaceutical logistics is further accelerated

In recent years, the gross profit of my country's pharmaceutical industry has been declining. At present, the average gross profit rate of the domestic pharmaceutical wholesale industry is 12.6%, while the average expense ratio has reached 12.5%. From January to September 2002, the average net profit rate of my country's pharmaceutical business was only 0.59%. The average gross profit margin of the US pharmaceutical wholesale industry is 5%, the average expense ratio is only 3% to 4%, and the average commercial net profit margin reaches 1% to 2%. There are many but small enterprises engaged in pharmaceutical wholesale in my country. Among the nearly 17,000 wholesale enterprises, only 10 have sales exceeding 1 billion yuan, and only 3 to 6 have sales exceeding 5 billion yuan. Among the 120,000 retail enterprises in my country, the largest chain store has an annual turnover of only 500 million yuan. How to face the impact of foreign capital if the situation of high logistics cost, low net profit margin, and a large number of wholesale enterprises is maintained? It can be seen that the development of modern logistics has become an urgent task for my country's pharmaceutical industry. Modern logistics is a product of the information age. With the deepening of the reform of the pharmaceutical circulation system, accelerating the development of modern pharmaceutical logistics is an important means to cope with international competition. The Fifth Plenary Session of the Fifteenth Central Committee of the Party pointed out: We must vigorously develop modern logistics. This is a major issue raised from the perspective of my country's economic development strategy. We must raise awareness and attach great importance to this work. The key to the competition of commercial enterprises lies in logistics, and efficient logistics distribution is the key to the success of commercial enterprises. The development of modern pharmaceutical logistics must be based on China's national conditions, combined with the implementation of GSP and business process reorganization, attention should be paid to both advancement and applicability, supported by the introduction of modern logistics management technology, it must be both software and hardware, not just building large storehouse. We must learn from foreign advanced experience, combine reality, rapidly develop modern logistics, implement large-scale, standardized, and intensive operations, and strive to achieve the goal of "reducing costs and increasing efficiency".

3.7 Market competition will become more intense

With the development of global economic integration and my country's entry into the World Trade Organization, there is no doubt that the domestic pharmaceutical market has become an international competitive market. Domestic enterprises will face the challenges of large multinational enterprises, not just other domestic enterprises. If they do not carry out reforms and accelerate the process of internationalization, they will be eliminated in the competition. As far as the current pharmaceutical market is concerned, the competition has just begun, because there are still many restrictions on the access of foreign capital, and there are still tariff barriers to the entry of foreign products. At this stage, foreign investment in the Chinese market can only be carried out in the form of joint ventures and cooperation, and there are restrictions on the investment ratio. However, similar foreign drugs entering the Chinese market also lose certain competitiveness due to high tariffs and high prices. A few years later, the above situation will change. The huge Chinese pharmaceutical market will attract large foreign companies to invest continuously. China will become the world's main production base of raw materials and preparations. The import and export trade of pharmaceuticals will increase sharply, and the price of pharmaceuticals will vary widely. The phenomenon will disappear, and the competition in the pharmaceutical market will become more intense.

To sum up, with the continuous development of the national economy, the continuous improvement of people's living standards, the growth of population, the aging of society and the gradual expansion of the rural pharmaceutical market, my country's demand for new treatment methods and new drugs will continue expand. On the whole, the pharmaceutical industry is developing well in my country's national economy, and the future development prospects are also very promising. However, weak competitiveness is an urgent problem for Chinese pharmaceutical companies, and this problem becomes more urgent with my country's entry into the World Trade Organization. Enterprises must pay attention to their own problems, face up to the opportunities and challenges brought about by joining the World Trade Organization in light of reality, comprehensively analyze the impact of macro-environment and various pharmaceutical reform policies on enterprises, and correctly grasp the pulse of the market and development direction in light of reality. The positioning of quasi-enterprises in the market and adapt to market changes. This is also the top priority in the work of business operators. In short, the development of my country's pharmaceutical industry has a long way to go!