Pharmaceutical Industry in China-Intellectual Property Protection, Pricing and Innovation-



by Chen Xiaohong and Mariko Watanabe
Published in 2007

Preface (43KB) / List of Contributor

Part I  Demand and Institution
Chapter 1

Demand (125KB) / Mariko Watanabe and Shi Luwen

1.1 Size and structure of Demand
1.2 OTC Drugs and Prescriptions
1.3 Medical Insurance Plans and Their Drug Catalogues
1.4 “Feeding Hospital by Drugs”: The hospital’s Demand
Chapter 2

Institution on Pricing (77KB) / Mariko Watanabe and Shi Luwen

2.1 The Principles of Price Setting
 2.1.2 Price Cap by the SDRC
2.2 Auctions Through the centralized Tendering Drug procurement Policy
2.3 Case study: Guangdong “Sunshine” Drug Procurement Scheme
Chapter 3

Patent, New Drug Protections and Innovation Promotion Policy (156KB) / Chen Jing, Shi Luwen and Cao Jinyan

1. Patent Protection in Chinese Pharmaceuticals
 1.1 Historical Development of the Patent System
  1.1.1 Revisions of Patent Law
  1.1.2 Objects of patent Protection and Conditions
  1.1.3 Time Period and Instruments of Patent Protection
  1.1.4 Routes for Legal Relief
 1.2 Data: Patents and Pharmaceutical Firms’ Development
  1.2.1 Overall Situation
  1.2.2 Geographical Distribution
  1.2.3 Content of Patented Technology
  1.2.4 Analysis of Competitiveness by Institutions
 1.3 Current Situation and Future Analysis
  1.3.1 Strengths
  1.3.2 Weaknesses
  1.3.3 Opportunities
  1.3.4 Threats
 1.4 Strategy for the Drug Patent Protection System in China
2. New Drug protection Policy
 2.1 Laws and Regulations and the Incentive Structure
 2.2 Outcome of “the New Drug Protection”
 2.3 Relationship between Patent Protection and New Drug Protection
3. Innovation Promotion Policies
 3.1 Innovation-Encouragement Policies
Part II. Supply: Strategy of Firms
Chapter 4
1. Literature
 1.1 Focus on the Pricing strategy
 1.2 “Feeding hospitals with Drugs” in Japan
 1.3 How Do Pharmaceutical Patents and Price Policy Affect Consumer Welfare?
2. Model Analysis and Data
 2.1 The Statins’ Demand Curve
  2.1.1 Data: Statins (or HMG-CoA reductase inhibitors) Market
  2.1.2 Historical Demand Curve in Individual Drugs
 2.2 Model prediction for Pricing Strategies
3. Case Study
 3.1 Pricing Policies of Firms That Were Interviewed
 3.2 Voices in The Field on Pricing
4. Analysis of the Impacts of Policies
 4.1 Maximum Retail Price
 4.2 “Patents” and 2New Drug Protection”
 4.3 The Impact of Auctions
 4.4 Pricing Policy and Innovation
 4.5 Summary: normalization of demand Should be the first
Chapter 5

Innovation: Evolution and Motivation (356KB) / Xiang Anbo and Chen Xiaohong

5.1 Literature Review
5.2 Innovation in the Chinese pharmaceutical Industry: a Survey
 5.2.1 Basic Information on R&D in the Chinese Pharmaceutical Industry
 5.2.2 Basic Information on R&D in Representative Chinese Pharmaceutical Firms
 5.2.3 Market, Resource Allocation, and Organization Innovations
 5.2.4 Innovation Achievements in the Chinese Pharmaceutical Industry
 5.2.5 Development Phase and Basic Evaluation
5.3 Evolution and Motivation of Innovation in the Chinese Pharmaceutical Industry
 5.3.1 Major Innovation Patterns in the Pharmaceutical Industry Characteristics of R&D in new drugs: greater difficulty, longer R&D periods, increasing investment, less marketable innovative drugs Major patterns in pharmaceutical industry innovation: product and technology innovation
 5.3.2 Innovation Patterns in the Chinese Pharmaceutical Industry Product innovation for R&D into new drugs Technology innovation to improve production efficiency and capacity Marketing innovation in promoting the brand and improving the firm’s status Organization innovation to improve the efficiency of R&D, manufacturing, and market development
 5.3.3 The Evolution of Innovation in the Chinese Pharmaceutical Industry
 5.3.4 The Chinese Pharmaceutical Industry’s Experiences and Issues