Analyzing the advantages of the "Belt and Road" and talking about the possibility of generic drugs going overseas

Generic drugs, go, go to the "Belt and Road"

 

In the process of sorting out the MNC2021 financial report, we saw that AstraZeneca actively expanded into emerging markets and achieved good results
.
After further understanding, it is found that developing countries generally have unmet needs in terms of medicines, including some unique tropical diseases still facing the situation that there is no medicine to treat
.
This is because market demand (rather than demand) in developing countries is weak, the benefits of drug R&D are not sufficient to cover costs, pharmaceutical companies lack R&D motivation, and the innovative drug market fails
.
We feel this is an opportunity for generics, which are priced by production costs rather than R&D costs, and should bring prices down to levels dictated by market conditions
.
On the other hand, with the encouragement and promotion of the "One Belt, One Road" policy, pharmaceutical companies will no longer export generic drugs to countries along the route alone, which can effectively reduce risks and improve the possibility of success and profitability
.
Based on the above reasons, we have compiled this article, mainly discussing the possibility of generic drugs going overseas, and the benefits and risks of generic drugs exporting to countries along the “Belt and Road”
.
Finding solutions to problems is everyone's responsibility, be it generic drugs or innovative drugs, there is always a way out for safe, effective and cost-effective drugs
.
Regardless of whether it is a cold winter for pharmaceutical companies, complaints and emotional expressions are not helpful for solving problems.
Constant thinking and improvement are the correct way to deal with them
.

 

The possibility of generic drugs going overseas

 

In the past, both India and China were big countries of generic drugs, but domestic generic drugs obviously could not compete with India, mainly because the quality of drugs was not recognized
.
Generic drugs in India often receive quality certifications from Europe and the United States, and they have broad market demand in both developed and developing countries
.
In fact, India has more low-end generic drugs and low-level repetitions than China, but high-end generic drugs are doing well, and these drugs are more competitive than ours
.
Now after the consistency evaluation of generic drugs, the quality of generic drugs in China has improved, and some drugs have also been certified by the United States and the European Union, and we have advantages that India does not have - more and better generic drugs, we have quantity and cost advantages
.
The generic drug market was theirs in the past and could be ours in the future
.
Not only innovative drugs can go overseas, generic drugs can also go overseas
.
No matter what era or country, good medicine at a good price will eventually be popular
.

 

Generic drug exports to countries along the "Belt and Road": analysis of advantages

 

Going overseas is not going abroad blindly.
Pharmaceutical companies need to understand policies and situations, and recognize the market and demand
.
In September 2013, President Xi Jinping visited Kazakhstan and proposed to jointly build the "Silk Road Economic Belt"; in November of the same year, the Third Plenary of the 18th CPC Central Committee upgraded the "Belt and Road" to a national strategy
.
Focusing on the "Belt and Road", the central government has clearly stated that it will "focus on promoting overseas investment in infrastructure that is conducive to the construction of the "Belt and Road" and the interconnection of surrounding infrastructure
.
" It is a relatively clear policy and situation that the state encourages enterprises to participate in the construction and investment of the "Belt and Road"
.

 

What do we think of when we talk about Kazakhstan? In 2017, PricewaterhouseCoopers' "White Paper on Investment in the Big Health Industry under the Background of "The Belt and Road Initiative" pointed out that the pharmaceutical industry in Kazakhstan is extremely backward in foundation, and more than 70% of medicines need to be imported; the government of Kazakhstan only provides basic medical services and some conventional medicines free of charge.
, a large number of unconventional drugs need to be purchased by the public at their own expense
.
Not only Kazakhstan, so far, many developing countries including Asia, Africa and Latin America are facing a situation of lack of medical care and medicine, and the economic level also determines their relationship with expensive patented drugs
.
This is actually human rights inequality, and it is also a broader market and demand
.

 

　　Therefore, generic drugs, go to the "Belt and Road"
.

 

　　Export of generic drugs to countries along the “Belt and Road”: case study‍

 

　　In 2012, Kelun Pharmaceuticals registered and established KELUN·KAZ in Kazakhstan and started the construction of the factory, which was completed and put into production in 2014
.
Since its establishment, the annual output of infusion products produced by KELUN·KAZ has exceeded 30 million bottles, making it the largest supplier of infusion products in Kazakhstan
.
In addition, KELUN·KAZ has cultivated a large number of technical talents for the local area, providing employment for more than 300 people, and has won awards from the Ministry of Investment and Development of Kazakhstan for many times.
The KELUN·KAZ project has been included in the Kazakhstan Industrial Development Support Plan and the "2050 Development Strategy" plan
.
At the same time, with Kazakhstan as its base, Kelun has successively developed markets in Central Asia and Russia, and its infusion market share in Kyrgyzstan has exceeded 30%
.
In 2019, Kelun achieved overseas sales revenue of 1.
241 billion, a year-on-year increase of 70.
15%, accounting for 7.
04% of revenue
.

 

　　As a major state-owned enterprise in medicine and health, Sinopharm is taking action
.
In 2015, Sinopharm established Zhonghua Nanyao Co.
, Ltd.
in Penang, Malaysia, and has achieved good results in terms of "Zhonghua Nanyao" as the No.
1 brand of dried blood and the No.
1 export volume
.
In 2018, it successfully acquired Tianma Bird's Nest Co.
, Ltd.
, a leader in the Malaysian bird's nest industry, to further consolidate its market position and promote the development of the local Chinese medicine industry
.
The Administration of Traditional Chinese Medicine also issued the "Development Plan for Promoting the High-quality Integration of Traditional Chinese Medicine into the "Belt and Road" (2021-2025)" at the end of 2021 to promote the participation of the pharmaceutical industry in the construction of the "Belt and Road".
The actual actions of Kelun and Sinopharm have shown that this is a feasible path for the development of generic drugs
.

 

　　Export of generic drugs to countries along the “Belt and Road”: Risk Warning‍

 

　　Finally, we would like to remind that it is more difficult for pharmaceutical companies to invest and build factories overseas than domestically
.
Difficulties in project communication and promotion caused by social and cultural differences, insufficient endogenous economies in developing countries, and large exchange rate fluctuations are also factors that need to be considered
.
The local political system, the consistency of regulations and supervision, the requirements for drug production and manufacturing, and the degree of market regulation may all bring unexpected difficulties
.
In a word, it is both an opportunity and a challenge for generic drugs to go to the “Belt and Road”
.

 

　　a little sublimation

 

　　Since China's reform and opening up, great progress has been made in science and technology, medical care, pharmaceuticals and other fields.
The improvement of medical insurance and social security systems has also made "seeing a doctor difficult and expensive" a thing of the past
.
We seldom face the dilemma of not being able to see a doctor now, but in other third world countries, the poor still suffer and die from disease.
According to WHO statistics, an estimated 93% of the world's preventable death burden occurs in developing countries.
country
.
The data shows that there is a market and demand there, but we should understand that behind the data is a fresh life, and they should have more possibilities
.
"Enjoying the highest attainable standard of health is one of the fundamental rights of everyone
.
It should not be divided by race, religion, political belief, economic or social situation
.
" Although profit is the purpose and survival of pharmaceutical companies The key, but the entrepreneurial spirit is the foundation that determines the company's pattern and long-term development
.
It is hoped that domestic pharmaceutical companies will think more about the responsibilities and significance of their existence while seeking development in a down-to-earth manner, and strive to become a capable and responsible multinational pharmaceutical company
.

　　Generic drugs, go, go to the "Belt and Road"

 

　　In the process of sorting out the MNC2021 financial report, we saw that AstraZeneca actively expanded into emerging markets and achieved good results
.
After further understanding, it is found that developing countries generally have unmet needs in terms of medicines, including some unique tropical diseases still facing the situation that there is no medicine to treat
.
This is because market demand (rather than demand) in developing countries is weak, the benefits of drug R&D are not sufficient to cover costs, pharmaceutical companies lack R&D motivation, and the innovative drug market fails
.
We feel this is an opportunity for generics, which are priced by production costs rather than R&D costs, and should bring prices down to levels dictated by market conditions
.
On the other hand, with the encouragement and promotion of the "One Belt, One Road" policy, pharmaceutical companies will no longer export generic drugs to countries along the route alone, which can effectively reduce risks and improve the possibility of success and profitability
.
Based on the above reasons, we have compiled this article, mainly discussing the possibility of generic drugs going overseas, and the benefits and risks of generic drugs exporting to countries along the “Belt and Road”
.
Finding solutions to problems is everyone's responsibility, be it generic drugs or innovative drugs, there is always a way out for safe, effective and cost-effective drugs
.
Regardless of whether it is a cold winter for pharmaceutical companies, complaints and emotional expressions are not helpful for solving problems.
Constant thinking and improvement are the correct way to deal with them
.

 

　　The possibility of generic drugs going overseas

 

　　In the past, both India and China were big countries of generic drugs, but domestic generic drugs obviously could not compete with India, mainly because the quality of drugs was not recognized
.
Generic drugs in India often receive quality certifications from Europe and the United States, and they have broad market demand in both developed and developing countries
.
In fact, India has more low-end generic drugs and low-level repetitions than China, but high-end generic drugs are doing well, and these drugs are more competitive than ours
.
Now after the consistency evaluation of generic drugs, the quality of generic drugs in China has improved, and some drugs have also been certified by the United States and the European Union, and we have advantages that India does not have - more and better generic drugs, we have quantity and cost advantages
.
The generic drug market was theirs in the past and could be ours in the future
.
Not only innovative drugs can go overseas, generic drugs can also go overseas
.
No matter what era or country, good medicine at a good price will eventually be popular
.

 

　　Generic drug exports to countries along the "Belt and Road": analysis of advantages

 

　　Going overseas is not going abroad blindly.
Pharmaceutical companies need to understand policies and situations, and recognize the market and demand
.
In September 2013, President Xi Jinping visited Kazakhstan and proposed to jointly build the "Silk Road Economic Belt"; in November of the same year, the Third Plenary of the 18th CPC Central Committee upgraded the "Belt and Road" to a national strategy
.
Focusing on the "Belt and Road", the central government has clearly stated that it will "focus on promoting overseas investment in infrastructure that is conducive to the construction of the "Belt and Road" and the interconnection of surrounding infrastructure
.
" It is a relatively clear policy and situation that the state encourages enterprises to participate in the construction and investment of the "Belt and Road"
.

 

　　What do we think of when we talk about Kazakhstan? In 2017, PricewaterhouseCoopers' "White Paper on Investment in the Big Health Industry under the Background of "The Belt and Road Initiative" pointed out that the pharmaceutical industry in Kazakhstan is extremely backward in foundation, and more than 70% of medicines need to be imported; the government of Kazakhstan only provides basic medical services and some conventional medicines free of charge.
, a large number of unconventional drugs need to be purchased by the public at their own expense
.
Not only Kazakhstan, so far, many developing countries including Asia, Africa and Latin America are facing a situation of lack of medical care and medicine, and the economic level also determines their relationship with expensive patented drugs
.
This is actually human rights inequality, and it is also a broader market and demand
.

 

　　Therefore, generic drugs, go to the "Belt and Road"
.

 

　　Export of generic drugs to countries along the “Belt and Road”: case study‍

 

　　In 2012, Kelun Pharmaceuticals registered and established KELUN·KAZ in Kazakhstan and started the construction of the factory, which was completed and put into production in 2014
.
Since its establishment, the annual output of infusion products produced by KELUN·KAZ has exceeded 30 million bottles, making it the largest supplier of infusion products in Kazakhstan
.
In addition, KELUN·KAZ has cultivated a large number of technical talents for the local area, providing employment for more than 300 people, and has won awards from the Ministry of Investment and Development of Kazakhstan for many times.
The KELUN·KAZ project has been included in the Kazakhstan Industrial Development Support Plan and the "2050 Development Strategy" plan
.
At the same time, with Kazakhstan as its base, Kelun has successively developed markets in Central Asia and Russia, and its infusion market share in Kyrgyzstan has exceeded 30%
.
In 2019, Kelun achieved overseas sales revenue of 1.
241 billion, a year-on-year increase of 70.
15%, accounting for 7.
04% of revenue
.

 

　　As a major state-owned enterprise in medicine and health, Sinopharm is taking action
.
In 2015, Sinopharm established Zhonghua Nanyao Co.
, Ltd.
in Penang, Malaysia, and has achieved good results in terms of "Zhonghua Nanyao" as the No.
1 brand of dried blood and the No.
1 export volume
.
In 2018, it successfully acquired Tianma Bird's Nest Co.
, Ltd.
, a leader in the Malaysian bird's nest industry, to further consolidate its market position and promote the development of the local Chinese medicine industry
.
The Administration of Traditional Chinese Medicine also issued the "Development Plan for Promoting the High-quality Integration of Traditional Chinese Medicine into the "Belt and Road" (2021-2025)" at the end of 2021 to promote the participation of the pharmaceutical industry in the construction of the "Belt and Road".
The actual actions of Kelun and Sinopharm have shown that this is a feasible path for the development of generic drugs
.

 

　　Export of generic drugs to countries along the “Belt and Road”: Risk Warning‍

 

　　Finally, we would like to remind that it is more difficult for pharmaceutical companies to invest and build factories overseas than domestically
.
Difficulties in project communication and promotion caused by social and cultural differences, insufficient endogenous economies in developing countries, and large exchange rate fluctuations are also factors that need to be considered
.
The local political system, the consistency of regulations and supervision, the requirements for drug production and manufacturing, and the degree of market regulation may all bring unexpected difficulties
.
In a word, it is both an opportunity and a challenge for generic drugs to go to the “Belt and Road”
.

 

　　a little sublimation

 

　　Since China's reform and opening up, great progress has been made in science and technology, medical care, pharmaceuticals and other fields.
The improvement of medical insurance and social security systems has also made "seeing a doctor difficult and expensive" a thing of the past
.
We seldom face the dilemma of not being able to see a doctor now, but in other third world countries, the poor still suffer and die from disease.
According to WHO statistics, an estimated 93% of the world's preventable death burden occurs in developing countries.
country
.
The data shows that there is a market and demand there, but we should understand that behind the data is a fresh life, and they should have more possibilities
.
"Enjoying the highest attainable standard of health is one of the fundamental rights of everyone
.
It should not be divided by race, religion, political belief, economic or social situation
.
" Although profit is the purpose and survival of pharmaceutical companies The key, but the entrepreneurial spirit is the foundation that determines the company's pattern and long-term development
.
It is hoped that domestic pharmaceutical companies will think more about the responsibilities and significance of their existence while seeking development in a down-to-earth manner, and strive to become a capable and responsible multinational pharmaceutical company
.