| By Cindy Wu, Asia Manufacturing Pharma |
| Wednesday, 03 June 2009 |
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The overall business situation for China’s pharmaceutical sector is not optimistic and some manufacturers have witnessed negative growth in the first quarter of 2009. The Chinese government issued several guidelines tied to the medical reform. As a result, hospitals are finding it difficult to identify the development directions of the industry. As a result, they have lowered drug inventories and taken a cautious attitude in terms of purchasing and dispensing drugs. Huadong Medicine, a leading pharmaceutical manufacturer based in Hangzhou, Zhejiang province, saw a recovery in their business, with
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operation sreturning to normal levels in April and May. The company is expected to record a year-on-year increase of around 20 percent in profits in 2009.
Sales of Cycopin, an immune preparation made by the Zhejiang-based manufacturer, |
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increased 35 percent to 40 percent in the first quarter. The product is being well accepted in new markets and the product’s market share is expected to increase significantly in the future.
Sales of Kaboping, a medicine for diabetes treatment, saw its market share increase by 30 percent to 24 percent over the last years, and is expected to win 40 percent of new markets that it enters every year due to its price advantage. German pharmaceutical giant Bayer’s Glucobay, the main competitor of Kaboping, holds around 73 percent of the market, however the drug is finding it difficult to enter the low end market. Huadong Medicine is developing chewable tablets for Kaboping, which are expected to drive the growth of the drug.
The company recorded a year-on-year increase of nearly 25 percent in sales of Corbrin Capsule. The company plans to introduce the capsule with a 0.5g, which is a more |
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convenient size for patients. However, the product has suffered capacity bottlenecks and the company plans to improve production capacity gradually through internal planning and adjustment.
In addition, the company’s Tacrolimus is expected to contribute RMB25 million (US$3.7 million) to revenues in 2009. The company has also recognized the importance of logistics in the development of its pharmaceutical business in the future and is accelerating the construction of its logistics base.
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