The "Eleventh Five-Year Development Guidance Opinions for the Pharmaceutical Industry," developed by the National Development and Reform Commission, was officially released and implemented recently. On the 31st, Zhang Guobao, deputy director of the commission, emphasized that the initiative aims to foster a pharmaceutical sector with strong global competitiveness, enabling certain sectors to reach world-leading levels and laying the groundwork for China's transition into a major pharmaceutical power.
The guidance outlines key development goals for the Chinese pharmaceutical industry from 2006 to 2010:
- In the field of chemical raw materials, the plan targets the industrialization of 20 high-potential, high-value products.
- For chemical drug preparations, the goal is to secure approval for five pharmaceutical products in the U.S. or EU markets.
- In traditional Chinese medicine, the focus is on developing and marketing 20 to 30 modern TCM products with clear efficacy mechanisms, safety, efficiency, stability, and controllability.
- For major infectious and chronic diseases, the aim is to industrialize 10 to 15 innovative drugs and vaccines with independent intellectual property rights.
- In medical devices, the plan includes the commercialization of 10 to 20 new digital, non-invasive, or minimally invasive diagnostic and therapeutic equipment and materials.
Zhang Guobao noted that China will place greater emphasis on enhancing the independent innovation capabilities of pharmaceutical companies and boosting R&D efforts for new drugs. He pointed out that current underinvestment in R&D and weak innovation capacity are significant barriers to the industry’s long-term growth.
According to the guidance, during the Eleventh Five-Year Plan period, R&D investment by medical device and key pharmaceutical companies is expected to exceed 5% of sales revenue, while general pharmaceutical companies should allocate at least 3%. Research will focus on areas such as anti-cancer treatments, cardiovascular and cerebrovascular diseases, antiviral infections, neuropsychiatric disorders, diabetes, and geriatric conditions.
In addition, the government plans to nurture five large pharmaceutical groups with annual sales exceeding 5 billion yuan, ten pharmaceutical distribution companies with over 3 billion yuan in sales, and support the initial international expansion of several local firms.
Zhang clarified that the guidance is not legally binding. Its main purpose is to provide information and recommendations to companies, guide the industry toward healthy and orderly development, and contribute to broader economic and social progress.
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