Pharmaceutical Enterprises will Shrink Sharply in Five Years

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Thursday, September 07, 2000, updated at 15:25(GMT+8)

Business

Pharmaceutical Enterprises will Shrink Sharply in Five Years

Sources revealed that the pharmaceutical enterprises in China are estimated to decrease substantially in five years.

It is said that the pharmaceutical line has achieved prominent effect in structure adjusting. Among several ten thousand industrial and commercial enterprises in this line the top 60 ones are outstanding with their sales income accounting for 33% and profit accounting for 69.5% last year.

According to the statistics from January to June, on the year-on-year basis the pharmaceutical industry has its general value of industry and sales income increased by 20% at the same time the finished goods’ capital occupation decreased by 2.1%.

An infrequent phenomenon in recent years has appeared for the first time: the production increases while the inventory decreases. The 25 ones that has been listed in the 520 key enterprises in China have a profit share of 35% with ten enterprises’ rate of production and sale exceeding 100%.

It is anticipated that the production value and commercial sale will both have new breakthrough to create historical new highs in this line this year. But at present there are still thousands of pharmaceutical enterprises that are struggling against losses. With the competition becoming more and more severe the firms in this line begin to show a tendency of polarizing. As a result,those who fail to stand on their own legs in the competition will be kicked out in the coming few years.


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	Sources revealed that the pharmaceutical enterprises in China are estimated to decrease substantially in five years.




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