Analysis of the Pharmaceutical Industry in China Based on Structure-conduct-performance Model / 中国药房

ABSTRACT

OBJECTIVE:To know the current situation of pharmaceutical industry in China and provide suggestion for its fur-ther development. MATHODSThe structure-conduct-performance model in industrial organization theory was adopted to analyze the pharmaceutical industry statistics data in China from 2004 to 2012. RESULTS&CONCLUSIONS:The characteristic of pharma-ceutical industry market structure was numerous pharmaceutical industries,but with low industry concentration;market entry barri-ers were low;the degree of product differentiation was increasing;new product output rate was basically increased year by year in recent years. The characteristic of pharmaceutical industry market conduct was weak pricing power,more than 2 400 drugs’pricing were monitored by government;the advertisement input of drugs was increased,and only 2013 ads served through the network plat-form was reached 630 million yuan;pharmaceutical industry mergers and acquisitions were active,and there were 43 public phar-maceutical industry mergers and acquisitions in 2013;R & D spending was annually increased,and the numbers of patent applica-tions and invention patents in force in 2012 were respectively 9 580 and 10 073. The characteristic of market performance was in-crease of sales profit rate year by year,reaching 11% in 2012;the output rate of new products for several years growth rate was reached 16.68% in 2011. However,there are still large gap between China and foreign pharmaceutical industry. It is suggested that the industry structure of development of pharmaceutical industry in China should be improved by strategic merger;increase R & D input;focus on building innovative research and development platform,improve collaborative innovation capability;strengthen monitoring of pharmaceutical industry,and implement standardized management.