25 June 2012 | Analysis | By BioSpectrum Bureau
Guangzhou Pharmaceutical leads TCM market
The company witnessed a growth of 33.82 percent in 2011
Guangzhou Pharmaceutical Holdings owns stakes in two companies, Guangzhou Pharmaceutical and Guangzhou Baiyunshan Pharmaceutical Company, and has over 30 other enterprises. It is one of the most recognized names in China and is engaged in the manufacturing and sales of Chinese patent medicine and western pharmaceutical products.
The company witnessed a growth of 33.82 percent in 2011, with its revenue witnessing a rise from $650.38 million in 2010 to $870.34 million in 2011. Over the years, Guangzhou Pharmaceutical has strengthened its research and development (R&D) of natural and biological medicines. By 2011, Guangzhou Pharmaceutical was operating through 52 retail chain pharmacy outlets, including 51 pharmacies that specialize in traditional Chinese medicines (TCMs). Guangzhou Pharmaceutical maintained a steady growth in its leading products including Xiaoke pill and Huatuozaizao pill and recorded impressive growth in Xiasangju Ju, Houjiling capsule, Zishen pills among other products.
With an objective to further strengthen its market, Guangzhou Pharmaceutical plans to set up a wholly-owned subsidiary, a Guangzhou-based healthcare company, engaged in the sale of food, healthcare products and medical equipment. The company also has plans to acquire 100 percent stake in Baiyunshan.
In the years to come, Guangzhou Pharmaceutical is looking ahead to strengthen the management of dealers and will continue to optimize the marketing channels. It also looks forward to strengthening the maintenance of the price system, dealers and retailers. The company has plans to promote steady improvement in product sales and marketing innovation in major markets such as hospitals, over-the-counter (OTC), communities and new rural markets.
Considering the changes that are taking place in China's regulatory environment in the pharmaceutical industry, Guangzhou Pharmaceutical is strengthening government related work by paying close attention to the changes taking place in the pharmaceutical domain. It is actively studying new medical reform policies in the essential drug list, health insurance directory, drug pricing and product bidding to achieve good results.
Furthermore, Guangzhou Pharmaceutical plans to strengthen its portfolio through R&D of genetic medicines and new drugs. To have a strong drug pipeline in Chinese medicine, the company is adopting ways to enhance co-operation with herbs' buyers for better quality procurement.
Besides growth in new products, Guangzhou Pharmaceutical actively promoted research and innovation, accelerating new product development and transfering of scientific and technological achievements.