Nobody downloaded yet

Chinese Pharmaceutical Industry - Research Paper Example

Comments (0) Cite this document
Summary
The Chinese government aims to boost the Pharmaceutical Company by providing them with numerous benefits. The articles of different Provinces of China provide diverse benefits for this purpose, although they are on similar lines.
'High-Technology Innovative Enterprises' (HTIE) is defined differently by the different provincial governments giving them necessary tax benefits…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER91.8% of users find it useful
Chinese Pharmaceutical Industry
Read TextPreview

Extract of sample "Chinese Pharmaceutical Industry"

Download file to see previous pages Theses firms are additionally required to set aside a minimum of 5.5% of the total revenue for R&D expenses. This Shanghai province necessitates a minimum expenditure of 4%, on similar lines to the Fuji Province which necessitates that the minimum R&D expenditure for such firms should be 5%, an increase of 2% from the earlier 3% prior to 1999.
On similar lines, different provinces provide different benefits to the HTIE, with the basic structure remaining the same. These Articles of diverse provinces outline several benefits including tax reductions, discounts on capital purchase, lending support by the government and other operation priorities related to the pharmaceutical HTIE units.
The Shenzhen Article 2.2 gives numerous benefits to HTIE units that have operated for more than a decade. The government promises that the income tax for the first and the second year of operation would be waived off completely, and would be reduced by fifty percent by the time they reached the eighth year of functioning. Article 2.3 states that for products concerning National innovation, twenty-five percent of the total share of the local government tax should be returned by a minimum of fifty percent by the municipal government for three years in a row. Article 3.3 further affirms that financial support as debt would be provided by the government to the tune of twenty percent to the HTIE firms. Article A-4.2 assures a discount between ten-twenty percent on rent and A-13.5 assures HTIE firms to have a priority on exports. Article-A/10 reduces the taxes on R&D expenditure. Although the basic vision and goals of the provinces remain the same, slight differences occur in terms of percentage numbers among the provinces of Shanghai, Fuji, Shangxi and the Zhejiang.
The role of the government in supporting the HTI Enterprises is obvious by the measures taken to provide aid and support to these enterprises. However, the benefits mentioned in the Articles are applied universally, as a whole to diverse industries, including Information Technology, Bio-technology, Modern agriculture, Environment protection along with the Pharmaceutical Industry (Article 5, Shanghai, 2001-7-2). The government ignores the fact that the pharmaceutical and biotechnology industry play a crucial role in R&D spending with nearly fifty leading Chinese global firms spending 16.4% of their total revenue on R&D activities whereas only four-to-six percent was set aside for the HTIE qualified units in China. The figure of 4-6& is understandably sufficient for other industries' innovation and development, but not so for the Pharmaceutical industry. It is therefore necessary to segregate the Pharmaceutical industry from the HTIE, providing it with a distinct status and consequently separate substantial waivers and rewards by the government for these actual innovative Pharmaceutical enterprises to flourish and prosper.
Price Ceiling
In China, the unequal distribution of medication is a serious social problem because of the differences in the price of drugs and regional incomes. In the year 2000, China ranked fourth last among 191 countries of WHO with regard to health service equality and accessibility. The 2003 national health census, confirmed that 48.9% ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“Chinese Pharmaceutical Industry Research Paper Example | Topics and Well Written Essays - 2000 words”, n.d.)
Chinese Pharmaceutical Industry Research Paper Example | Topics and Well Written Essays - 2000 words. Retrieved from https://studentshare.org/miscellaneous/1529306-chinese-pharmaceutical-industry
(Chinese Pharmaceutical Industry Research Paper Example | Topics and Well Written Essays - 2000 Words)
Chinese Pharmaceutical Industry Research Paper Example | Topics and Well Written Essays - 2000 Words. https://studentshare.org/miscellaneous/1529306-chinese-pharmaceutical-industry.
“Chinese Pharmaceutical Industry Research Paper Example | Topics and Well Written Essays - 2000 Words”, n.d. https://studentshare.org/miscellaneous/1529306-chinese-pharmaceutical-industry.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document

CHECK THESE SAMPLES OF Chinese Pharmaceutical Industry

The US Pharmaceutical Industry

...?On the US Pharmaceutical Industry The United s pharmaceutical industry can be considered as a highly competitive market. This is demonstrated through several factors that collectively lead to its positive performance such as market trends, profit and productivity. Ultimately, the competitiveness of the industry is fundamentally ensured by the fact that it relies on research and development as well as innovations that is why attempts at regulation would seriously hamper its performance. This point is demonstrated in the manner by which the US pharmaceutical industry dominates global stage. The US...
3 Pages(750 words)Essay

The Global Pharmaceutical Industry

...The Global Pharmaceutical Industry Introduction The global pharmaceutical industry is characterized by lengthy and risky research and development process, powerful purchase pressures, stringent government regulations and high competition for rational property. The global pharmaceutical industry has significantly contributed to the human civilization for the welfare of mankind. The study will describe how internal and external environment forces have affected the industry (Maclennan, 2004, p.11). In order to determine the issues, PESTEL Analysis and Porter’s Five Force Analysis have been implemented in the study. Finally,...
6 Pages(1500 words)Case Study

Global pharmaceutical industry

...Alpharma Inc. is one of the giants in the global pharmaceutical industry. The company provides health safety medication and life saving drugs to the people around the world. The company does not only develop the pharmaceutical products, but also manufactures them and market them to make them available in most parts of the world. Due to the every increasing cost and expenses that adversely affected the company's profit margin, even though the company was having substantial increase in turnover and revenues, the management decided to launch a workforce reduction program in the year 2003. As mentioned in the company's annual report (2003, p21), "In the fourth quarter of 2003, the...
10 Pages(2500 words)Essay

Pharmaceutical Industry

...side effects (EMEA 2006). Other issues include the rights and safety of the study subjects, the duration of the clinical trial, the appropriateness of the facilities at the intended site, the experience and qualifications of the study investigators and staff, the administration and manufacturing of the study drug, the procedures for monitoring safety in terms of serious adverse events, the provisions for informed consent and the use of financial incentives References ABPI (2006), The Association of British Pharmaceutical Industry, Clinical Trials, http://www.abpi.org.uk. Last accessed 28 June 2006. EMEA (2006), The European Medicines Agency, http://www.emea.eu.int/pdfs/human/swp/9185006en.pdf. Page...
2 Pages(500 words)Essay

The pharmaceutical industry

...The Pharmaceutical Industry: 2. After 2002, the profitability of the industry, measured by ROIC, started to decline. Why do you think this occurred? There are several reasons for the decline in profits for pharmaceutical companies after 2002. The foremost among them is the aggressive competition for market-share seen in the generic drug sector. It is well-known that once pharmaceuticals lose patent protection over their proprietary drugs the prices tend to fall drastically – as much as 80%. With companies losing patents over blockbuster drugs without adding new drugs to their repertoire, the profits are bound to fall. Then there is the negative...
2 Pages(500 words)Essay

The Global Pharmaceutical Industry

...Running Head: Case Study “The global Pharmaceutical Industry" Case Study “The global Pharmaceutical Industry" S. No Table of Contents Page No 1 Pharmaceutical Industry: An Overview 2 2 Pharmaceutical Industry Environmental Forces: An Introduction 4 3 Implications of the Changing business Environment on Pharmaceutical Firms 11 4 Application of Porter’s Five Forces on Pharmaceutical Industry 12 5 Limitations of the Tools in the Analysis 15 6 Pharmaceutical...
11 Pages(2750 words)Coursework

Pharmaceutical Industry Critisizm

...The pharmaceutical industry is one of the largest and most powerful industries in the world. In 2009 the pharmaceutical industry generated $837 billion in revenues worldwide (Plunkett Research, 2011). The industry serves a critical role in health care because the drugs they develop are prescribed by doctors to treat thousands of potential illnesses. It is very common for the general public to criticize the pharmaceutical industry and its participants. A common criticism of the industry is that it charges too much money for the drugs it sells. For instance the...
2 Pages(500 words)Research Paper

Pharmaceutical Industry

...Medicare and the Relative Risks to Both Insurer and Hospital The United s has a complex healthcare system that focuses on reimbursement for services already provided and expenses that have already occurred (Casto & Layman, 2006). Unlike standard business models, patients frequently leave the hospital already treated, but without paying for the service (Bodenheimer, Wagner, & Grumbach, 2002). This means that the hospital needs to have a way of getting the money for the services and expenses that they have incurred. This is generally done through reimbursement systems that rely on patients having health insurance (Casto & Layman, 2006). Insurance companies work by charging a premium for people to use their service... and the Relative...
2 Pages(500 words)Research Paper

Pharmaceutical Industry

...Pharmaceutical Industry We can define the pharmaceutical industry as the industry that discovers, develops, makes, and sells various licensed drugs and medicines that apply in the medication of distinct disorders or ailments (Laws.com, 2013). The pharmaceutical industry entails pharmaceutical companies that have the authority to deal with a wide variety of generic and brand drugs and medicines and medical devices (Laws.com, 2013). Subject to the significance of medical sector and the potential side effects and potential dangers associated with medicinal drugs produced in this industry,...
3 Pages(750 words)Essay

Counterfeit Pharmaceutical Drug Industry

...pharmaceutics usually relies on national governments and legal institutions not ordinary people personally (Burns, 2006). In other words, counterfeit combat is above all a political battle. In this context, the analysis of regulation in this sphere is based on interest group theories (Baldwin et al., 2012, p. 43-49). Thus, issue of making regulation more effective is crucial for the medical sphere in general and counterfeit combat in particular, because it has social consequences and political nature. 2.2. Defining key notions in counterfeit drug industry regulation At the very beginning, the object of counterfeit regulation is blurring. In general, there is no definition of counterfeit drugs, common...
13 Pages(3250 words)Essay
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

Let us find you another Research Paper on topic Chinese Pharmaceutical Industry for FREE!

Contact Us