Sangershi Risk Express Series: China's chemotherapy drug market risk briefing

Chemotherapy drugs can act on the growth and reproduction of tumor cells in different links, inhibit or kill tumor cells, is currently one of the main means of treating tumors.
according to the source and chemical structure of the drug, chemotherapy drugs can be divided into alkanes, anti-metabolic classes, anti-cancer antibiotics, plant-based anti-cancer drugs, hormones and platinum, etc. (Figure 1).
China's society is in a stage of rapid aging, the incidence and mortality rate of chinese residents has increased significantly in the past decade, in January 2019, the National Cancer Center released the latest issue of national cancer statistics, malignant tumors have become a serious threat to the health of the Chinese group of major public health problems, death accounted for all residents 23.91% of the causes of death, in 2015 malignant tumor incidence of about 3.929 million people, death of about 2.338 million people, malignant tumor incidence rate maintained an annual increase of about 3.9%, mortality rate maintained an annual increase of 2.5%.
spend more than $220 billion a year on medical care caused by malignant tumors.
demand for chemotherapy drugs is also expanding, according to statistics in 2014 China's chemotherapy market size of about 40 billion yuan, the industry market size is expected to exceed 100 billion yuan in 2020, the industry market size has maintained a relatively fast growth rate.
China's anti-tumor drugs have seven categories of more than 160 varieties, due to health insurance policy reasons, China's anti-tumor drugs are still dominated by chemotherapy, anti-metabolic drugs, plants and hormones accounted for more than 50%, anti-metabolic drugs market share of about 21.6%, plant market share of about 19.5%, platinum drugs accounted for about 10% (Figure 1).
companies that produce chemotherapy drugs are Hengrui Pharmaceuticals (600276) and Shi Pharmaceutical Group (1093. HK), Leafy Pharmaceuticals (2186. HK), Yuheng Pharmaceuticals (002437), Four Rings Biology (000158), Fengyuan Pharmaceuticals (000153), Haizheng Pharmaceuticals (600267) and Shuangyu Pharmaceuticals (002038), etc.
Chart 1. Classification and market conditions of chemotherapy drugs Source: Public information and corporate annual report SGRCR collation 1. The market concentration is high At present, China's chemotherapy drug market pattern has been formed, with local companies with a high market share including Hengrui Pharmaceuticals, Stone Pharmaceuticals Group, Green leaf pharmaceutical and Qilu Pharmaceuticals, multinational pharmaceutical companies including Roche, Avant, AstraZenech, Pfizer, Sessegon, Novarce, Hengrui and Roche in the chemotherapy drug market.
2. New drug research and development bottleneck Although local enterprises are constantly strengthening the product construction of chemotherapy drugs, but chemotherapy drug global new drug research and development has been in a bottleneck period, domestic anti-tumor drugs are also in the period of generic drugs and biosimilars to replace imported drugs, local pharmaceutical companies have gradually mastered the production of advanced technology, some enterprises invest in chemotherapy and targeted generic drug production, some enterprises choose to invest in biosimilar drug research and development.