In 2014, under the influence of continuous drug price reductions and medical insurance fee control policies, the Chinese biopharmaceutical industry still showed a good growth momentum. The prediction results of Ping An Securities show that the biopharmaceutical industry achieved revenue and profit growth rates of 13.95% and 11.82% in 2014, becoming one of the few industries that far exceeded GDP growth rate.

The favorable policies stimulate the rapid development of the industry.

In recent years, the country has continuously increased its support for the biopharmaceutical industry, especially the "12th Five Year Plan" for the Development of National Strategic Emerging Industries issued by the State Council, which has identified the biopharmaceutical industry as one of the seven major strategic emerging industries, injecting strong impetus into the industry's development. Data shows that during the 11th Five Year Plan period, the output value of China's biopharmaceutical industry jumped from 0.6 trillion yuan to 1.6 trillion yuan.

According to a market researcher at Yubo Intelligence, driven by continuous positive policy factors, the Chinese biopharmaceutical market will continue to expand. Industry insiders predict that the Chinese biopharmaceutical industry will maintain an annual growth rate of around 12-20% in the next 5-10 years, and by the end of the 12th Five Year Plan, the industry scale will reach 3.6 trillion yuan. In the medium to long term, China's pharmaceutical industry has enormous development potential. China's medical expenses are significantly lower than those of developed countries. With economic development and increased health awareness, medical expenses will rapidly increase. In addition, factors such as aging population will continue to increase the demand for the pharmaceutical industry, "said a researcher at Anxin Securities. According to data, the current per capita healthcare expenditure in China is only 139 US dollars, while the figures in Japan and the UK are 22 and 30 times higher than those in China. It is predicted that in 2020, China's biopharmaceutical market will become the second largest global biopharmaceutical market after the United States. These numbers all indicate that the market potential of China's biopharmaceutical industry is enormous. Especially with the rapid growth of the aging population and the improvement of residents' health awareness, the market demand for biopharmaceutical products is also constantly increasing. In recent years, the incidence rate of chronic diseases such as cardiovascular and cerebrovascular diseases and diabetes has increased significantly in China. Taking diabetes as an example, the number of diabetes patients in China was about 92 million in 2012, and it is estimated that 40 million will be increased by 2030. In response, Fu Mingzhong, Executive Chairman of the China Pharmaceutical Business Association, predicted at the 69th China Pharmaceutical Trade Fair that the biopharmaceutical industry in China is expected to form a market of 600 billion to 800 billion yuan in the future. Industry insiders stated in an interview with media reporters that with the rapid advancement of medical reform and the national essential drug system, the investment in the national health industry will continue to grow rapidly, laying a solid foundation for the development of the biopharmaceutical industry.

A market worth hundreds of billions is in front of us, "Shi Jinhai, the full-time vice president of Tianjin Biomedical Joint Research Institute, said in an interview with reporters. In recent years, some important biotechnology product patents in Europe and America will expire one after another, ushering in a patent cliff, which provides a rare development opportunity for China's biotechnology drug development. According to reports, the so-called "patent cliff period" refers to the period from 2012 to 2020 when more than 600 patents for drugs worldwide will expire in China. According to incomplete statistics, the current market value of these drugs is approximately 259 billion US dollars. According to reporters, in the entire biopharmaceutical industry in China, generic drugs still dominate, accounting for about 95%. Therefore, the concentrated expiration of drug patent technologies provides excellent development opportunities for China's biopharmaceutical industry.

Cheng Zengjiang, Chairman of Beijing Kebeiyuan Biopharmaceutical Technology Co., Ltd., also told reporters that biological analogues are an active field in China's biopharmaceutical industry and one of the factors contributing to the rapid development of CRO. According to data, out of the top ten best-selling drugs in the world in 2013, 7 were biologics. Prior to 2019, patents for best-selling drugs such as Herceptin, Enli, Lypro insulin, Melobartin, Alfadabesantine, and Lipid will also expire, leaving huge market space for Chinese biopharmaceutical companies. However, industry insiders also point out that although opportunities are ahead, there are still multiple bottlenecks in the Chinese biopharmaceutical industry that need to be overcome. The reporter learned that at present, multinational pharmaceutical companies occupy a monopolistic position in the biopharmaceutical market, possessing advanced technological advantages. Through years of patent layout, a series of patent barriers have been formed, becoming a huge obstacle that Chinese enterprises have to face in the industry development.

Especially unlike chemical pharmaceuticals, biopharmaceuticals involve complex technologies and sensitive and fragile drug structures, making it difficult to produce generic drugs in the biopharmaceutical field. Industry insiders say that if a company's own research and development capabilities are insufficient, even if foreign drug patents expire, it will be difficult to find a market share. From the development situation of local small and medium-sized biotechnology enterprises, Li Shenghua, the general manager of Tianjin Shengfa Biotechnology Co., Ltd., admitted that Chinese biotechnology companies, especially entrepreneurial enterprises, still face a lot of pressure. The lack of competitive products, small scale of enterprises, and low level of industrialization are all hindering the development of domestic biopharmaceutical enterprises.