Horizontal comparison of U.S. prescription drug market, one can refer to the future. Since 1985, the U.S. prescription drug market has maintained an average growth rate of more than 10%, mainly due role in promoting a number of new drugs, digital thermometer but our country has not yet entered the era of patent medicines, at a low level of development,clinical thermometer market growth is the rate of 20% or more gradually accelerate the future development is huge.
Prescription drug market growth of the full driving force. First, continued high population growth in health spending, laid the cornerstone of growth in demand for prescription drugs, ear thermometer and secondly, medium and long term aging trend will stimulate consumer demand for prescription drugs, once again, the changes of disease spectrum illness is expected to foster new kinds of drug market, In addition,digital blood pressure monitor the government health input increased, will greatly suppressed the release of demand for prescription drugs, prescription drugs on the field of pharmaceuticals, medicine and other assistance is most obvious.
Our point of view a: prescription drugs dominate the pharmaceutical market. Prescription living in the central part of the entire pharmaceutical industry has played a leading role. Their needs will determine the industry's boom of the API; patent expiration prescription drugs can be converted to extend the life of OTC products; prescription drugs and medical devices can also form a joint treatment. Prescription drug sales in China accounted for nearly 75% of the share of drug sales in the main channel of the terminal body of medical prescription drug sales accounted for 80% -90%, in fact, mastered the unique advantage.
Second, our point of view: the era of great development of prescription drugs is coming. With the large number of patent medicines the next three years due the global and multinational pharmaceutical companies on new product development bottleneck, we expect the prescription drug business of the next decade will usher in a relatively liberal market environment, walking in front of the leading prescription drugs companies will usher in the golden period of development: pot of gold from the large number of patent medicines expire, to 2011 in 2009 in succession to the world billions of dollars worth of patented drugs lose patent protection, the second pot of money from a large number of country a class of drugs will enter the market, prescription drugs is coming golden years golden years of patent medicine.
Our view III: patent medicine can help pharmaceutical sector outperform. Government to encourage drug development in Japan, and gradually people prefer social factors such as the promotion of patent medicine, the 20th century, 70's to 80's golden era ushered in the Japanese pharmaceutical companies, and ultimately drug patent generic leap to the same period, the Japanese pharmaceutical sector in a bull market significantly outperform the market, the case for our investors provide a very good basis to judge.
Investment advice: Our investment strategy for the selection of ideas kind of prescription drugs prescription drugs in the current development of the industry turning point in the configuration, on the one hand to bring the industry to upgrade the safety of their investment in marginal, on the other hand the full enjoyment of the future to bring the huge patent medicine era income, for which we recommend Hengrui Medicine, Huadong Medicine, double Heron Pharmaceutical, the same medicine.