The Chinese government is to increase investment in the development of new
drugs and encourage innovation in domestic pharmaceutical companies, an official
said here Thursday.
Insufficient funding for research and development and a lack of innovation
had hampered development of China's pharmaceutical industry, said Zhang Guobao,
deputy director of the National Development and Reform Commission.
The commission has issued guidelines for the development of the medical and
pharmaceutical industries, which set goals for the 11th five-year plan
(2006-2010) period, said Zhang.
The goals are:
-- to industrialize production of 20 chemically-processed raw pharmaceuticals
which have potential demand growth and high value added.
-- to try to secure five medical preparations listed in the United States and
the European Union.
-- to develop and commercialize 20 to 30 standard, safe, effective and stable
traditional Chinese medicines.
-- to industrialize production of 10 to 15 new drugs and vaccines for the
treatment of severe and acute infectious diseases and serious chronic diseases,
of which China owns the intellectual property rights.
-- to industrialize production of 10 to 20 varieties of digital and minor or
non-invasive surgical equipment and materials.
The guideline requires at least five percent of income from pharmaceutical
sales to be reinvested in research and development of medical equipment and
major companies, and three percent to be spent on general producers.
The key areas for developing new drugs will be cancers, cardiovascular and
cerebrovascular systems, viral infections, nervous and psychological systems,
blood sugar reduction and senile illnesses.
In addition, the government will establish five large pharmaceutical groups
with sales of at least five billion yuan (625 million U.S. dollars) each and 10
groups with sales of three billion yuan (375 million U.S. dollars) each by 2010.
It also aims to help five domestic companies to grow into international
pharmaceutical producers.
Zhang said the guidelines were flexible. "The purpose is to release
information and make suggestions to pharmaceutical companies and lead a healthy
and ordered growth of the pharmaceutical market."
