Zhang Simin: National Pharmaceutical Industry Rely On Health Care - National Medical, Health

Zhang Simin: National Pharmaceutical Industry Rely On Health Care - National Medical, Health
Shenzhen General Chamber of Commerce, Neptune Group Chairman Zhang Simin was first elected to the National People's Congress. He submitted proposals to the General Assembly, the National People's widespread concern about high drug prices put forward their views and suggestions.



Main cause of high drug prices is not the pharmaceutical companies

Zhang Simin said that now the country's people opinions on the drug prices are very high, many people think that the pharmaceutical companies to make money away. This is actually a misunderstanding. He used this to explain a set of numbers.



He pointed out that pharmaceutical companies industry-wide profitability of less than 10%, and from 2003 to 2006, profitability was 9.7%, 8.8%, 8.4% and 8%, showing declining trend. Production of a bottle of sodium chloride used for intravenous injection, requires huge capital investment and construction meet the standards of modern production workshop GMD, but also after passing through rigorous inspection to the factory, but its still not a bottle of mineral water factory price higher prices.



By contrast, according to hospital statistics released by the Ministry of Health estimates, hospital income, plus more than half of drug prices. According to the 2005 National Development and Reform Commission statistics, the average net price hospital drugs more than 42%, much higher than the 15% level set by the state. Medical institutions receive an annual net price of drugs up to 500 billion, while pharmaceutical companies to make products to enter the hospital and pay the numerous fees are more than 400 million outstanding long-term occupation of medical institutions, funds of payment, there are thousands of drugs billion.



This group of figures shows that the primary responsibility for high drug prices is not the pharmaceutical companies, but the current unreasonable "to drug dependent doctors," the medical system.



Advocate the establishment of pharmaceutical industry investment fund

Zhang Simin said that China is a developing country with 1.3 billion people, most of the population is not rich. Statistics show that in 2005 the chemical pharmaceutical industry in China is only equivalent to the total sales of 19 billion U.S. dollars, accounting for only 2% of the global market; the annual per capita expenditure on drugs for less than 15 dollars, only about the level of India and Pakistan. However, to solve China's 1.3 billion people, basic health care, certainly can not rely on multinational pharmaceutical companies, which rely on national pharmaceutical industry, because it involves a country's strategic security issues.



Zhang Simin that national pharmaceutical companies to enhance the international competitiveness, the need to improve pharmaceutical industry concentration and core competencies, to foster the development of a number of internationally competitive large medical group. To do this, we must have effective policies to support the State, such as the establishment of pharmaceutical industry investment fund, is an important policy choices.



Zhang Simin said that foster international competitiveness of large medical groups, from basic research and development, clinical trials to large-scale industrial production and marketing, each link in accordance with international standards, no need to upgrade and build, no need large capital inputs to support. Now our medical research institutions, pharmaceutical companies have worked hard cultivating a large number of outstanding talents, favorable treatment by foreign companies to take away, is also an input problem. However, in the current system, so demand for funds in addition to enterprise self-accumulation and self-financing and a limited number of and access to bank loans, almost without a sustained and stable sources. Highly developed market economy countries and regions, industry investment fund represents an advanced investment regime, and has quite a comprehensive and universal, we can draw this line with market economy laws of the advanced forms of investment, to become dedicated to pharmaceutical industry investment and financing services to private, non-bank financial institutions, so that the pharmaceutical industry, industrialization, modernization and internationalization played incubator, catalyst and accelerator, a series of important role in achieving industrial capital and financial capital combination.



Suggest that the state abolish the direct pricing of medicines



View of the state of the drugs the way prices are not really solve the problem of high drug prices, Zhang Simin recommended that countries should accelerate the establishment of drug prices science, fair, open and fair evaluation system, and related pricing policies as issued the important basis for adjustment of drug prices to avoid "broad-brush" phenomenon, the implementation of fair competition, good quality and inexpensive. Suggest that the state abolish the direct pricing on drugs, drug prices to establish a sound management and regulation system. At the same time, giving foreign companies a level playing field within.