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Recently, this reporter from the National Development and Reform Commission, "the pharmaceutical industry of economic performance in 2007," learned that in 2007 total industrial output value pharmaceutical industry (including Veterinary Drugs ) 692.6 billion yuan, up 25.3% of the whole industry realized a total profit of 55.2 billion, up 50.2%, the highest level in history. However, investment growth fell API And Chinese herbal medicine prices and other factors will be troubled industry.

Advances in medicine Proprietary Chinese medicine, Chinese Herbal Medicine signs of rapid processing industry in the second half of 2006 show clues, in 2007 further accelerated this trend throughout the year.

2007, the Chinese patent medicine industry 149.1 billion yuan, up 20.7%, profit 13.59 billion yuan, up 52.6%. Chinese Herbal Medicine processing industrial output value 30.4 billion yuan, up by 37.3%, a profit of 1.45 billion yuan, up 65.1%. Chinese Herbal Medicine Processing Industry growth above the industry average.

In the sales rate, the pharmaceutical industry 2007 average sales rate of 94.8%, which fell 0.5 percentage points. The Chinese patent medicines, Chinese Herbal Medicine processing and manufacturing production and sales rates over the same period increased by 0.4,1.9 percentage points.

"Many Chinese enterprises realize that medicine should do to improve efficacy of the first. So, some good companies are using slices feed, rather than the original medicine." Pharmaceutical Co., Ltd., Jiangsu Kangjin Yuan Xiao Wei told reporters, Tong Ren Tang's Pieces do better than the others, with slices of proprietary Chinese medicine quality feed production, effects are certainly good, many excellent Chinese enterprises have also been feeding on persistently Pieces of.

Growth for the Chinese medicine market rising, he did not quite agree with "traditional Chinese medicine industry has begun to rise, more than chemical drugs," the statement. "In recent years the development of Chinese medicine is yes, but only medicine Pharmaceutical market Share of 20% will not be much change, medicine and chemical medicine gap remains large. "Xiao Wei is more willing to look at this as a pharmaceutical market after the positive response rectification. He said that the sale of proprietary Chinese medicines, a few years ago chaotic order, subject to a number of chemical drugs do not regulate the impact of marketing, many traditional Chinese medicine because of low margins, severely restricted in the hospital out of the market. After reorganization in 2006 the pharmaceutical market, to combat commercial bribery, the development of Chinese medicine to bring a new opportunity. purified pharmaceutical market for low cost, good efficacy of Chinese medicine left out of position. "such as the compound Danshen dripping pills, capsules and other innovations Guizhifuling varieties of Chinese medicine, in order of norms operating after the pharmaceutical market has improved. "

In addition, as the market standard, non- Prescription drugs Marketing tool to enhance, Chinese enterprises through advertising communication, the establishment of a number of traditional Chinese medicine industry leading brands, such as slow-Yan Shu Ning card clearing throat Liyan particles, sunflower card liver tablets, Hong Yuan brand Liuweidihuang soft capsules, high-density ad for Chinese people began to have confidence. Xiao Wei also pointed out that sales of proprietary Chinese medicines to enhance, but also may show the trend of polarization. Kind of structure is good, marketing, advanced, large-scale enterprises has been rapid development; while many small businesses, due to poor product mix, marketing companies will continue to shrink backward.

Pharmaceutical industry investment growth down "2007 growth rate of investment in medical and industry downturn, the manufacturing sector than the national average increase in the low level of investment in fixed assets by 23 percentage points in the manufacturing sector ranks second to last place." The NDRC report said by 2006 sharp drop in efficiency of the sector, industry threshold increase, as well as from pharmaceutical research and development, production, marketing and use of various aspects of the impact of consolidation in full swing. Since the second half of 2006, industry investment in fixed assets fell sharply in 2006, only 8% of total investment of the year, half the level for the year 2004,2005 (respectively 17.9% and 16.6%).

A securities analyst told reporters that investment growth in industry leading companies to switch to the phenomenon of decline has occurred this year. In early 2008, * ST Ring Ring Group to sell all assets and liabilities, and to absorb additional shares of convertible combined Northern Trust. * ST City of Victoria has changed its name to Northern International Trust & Investment Co., Ltd., Northern Trust in 2007, according to estimates, the expected profit in 2008 reached 178 million yuan, respectively, 177 million yuan, much higher than the effectiveness of the pharmaceutical industry. Jilin Aodong recently spent 300 million yuan involved in Tonghua Steel Group Dunhua Tower East iron ore mining industry limited liability company news, and more confidence against the pharmaceutical industry. Although

Jilin Aodong said the company's main business will not turn iron ore industry, but they also pointed out that "If the project can be successfully implemented, will have long-term sustainable development of the company have a major impact."

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