Pharmaceutical research and development of enterprises
 
 
07:12 June 02, 2014 

 
Source: the China securities journal 

        In all industries is the most focus on research and development of TCM industry. In 2011, for example, Toyota on r&d investment of $9.9 billion, is the largest company in global r&d investment amount. But as a result of Toyota's income scale, r&d spending was only 4.2% of Toyota's revenues, and the international pharmaceutical giant novartis, roche and Pfizer, respectively, 16.4%, 19.6% and 13.5% of their income on research and development, research and development costs up to $9.6 billion, $9.4 billion and $9.1 billion, although in amount than Toyota, but much higher than the proportion of r&d expenses of income Toyota. 
 
        IT is also a high r&d industry, but if compared with pharmaceutical research and development, the IT industry or slightly smaller. Microsoft, Intel and cisco systems, the world famous giant IT r&d spending accounts for the proportion of income, generally between 10% and 15%, and the international pharmaceutical giant r&d spending accounted for the proportion of income generally between 15% and 20%. 
 
        Medicine and research and development of the common characteristic of the IT industry is heavy, but both exist significant differences in research and development. IT industry famous Moore's law tells us that under the condition of invariable in price, the performance of the computer has more than doubled every 18 months, IT technology progress rapidly, but is the most important characteristics of pharmaceutical research and development cycle is long and costly, generally a new drug research and development need to spend and invest $1 billion over 10 years. For the IT industry, the technology of the new the better, but for the pharmaceutical industry, new drugs might have better curative effect, but also may cause unintended side effects. New drug needs to be done before listing 5-6 years of clinical trials, again and again to verify the safety and efficacy of new drugs, in spite of this, new drug post-marketing is often because of security issues in litigation, Merck went public in 1999 blockbuster drug yesterday, had just because delisting could cause heart problems. 
 
        Due to the pharmaceutical research and development is not only time-consuming, laborious and huge risk, most domestic drug companies give priority to with generics. Hengrui and beida in recent years, some research and development strength of strong domestic drug firms have made a breakthrough in the field of innovative medicine, 2011 hengrui iresearch yesterday cloth and beida approed for ek, ek for Nepal's sales in 2013 reached 500 million yuan, is the most successful domestic innovation in medicine. But overall, the innovation of the domestic medicine research and development is still in its infancy, although there are more than 70, 1.1 class of new drugs in development sale but not more than 10, with independent intellectual property rights and be successful in our sales would be much less. 
 
        Domestic and developed countries in the large gap in new drug research and development, the main reason is: 
 
        One is a serious shortage of r&d investment in the domestic pharmaceutical companies. Domestic research and development of benchmarking enterprise hengrui will rise to about 10% a year on research and development, but if the absolute amount, only a mere 500 million yuan. Domestic drug firms income scale and international giant far, determines the domestic pharmaceutical companies could have been invested in research and development of funds is very limited. 
 
        Second, the domestic basic medical is relatively backward. In new drug preclinical studies, target selection and screening of compound foundation link requires basic medical support. But compared with developed countries, domestic colleges and universities to drug companies in basic medical support is still quite limited. 
 
        3 it is the government's support of new drug sales to ascend. The innovation of the domestic medicine iresearch yesterday cloth and ek for listing has been more than three years, but iresearch yesterday cloth has not yet been incorporated into national and local health care, for ek, only in zhejiang province was incorporated into local health care, health care and the health care has had a huge impact on drug sales. The adjustment of the medical insurance directory is a cycle, but for innovation in medicine, should enjoy into health care the green channel. Because the drug patent protection is limited, only during the patent period as soon as possible into the health care, make innovation medicine enterprise to get enough profit, can stimulate the enterprise research and development of new drugs.