How do pharmaceutical manufacturers choose drug research and development projects?

At present, there are more than 4,000 pharmaceutical manufacturers in China, but most of the products they produce and sell are highly homogeneous generic drugs. The market competition is fierce, and the profit space is constantly being compressed. In recent years, with the change of national policy, the price of generic drugs has been greatly reduced many times. Under the double squeeze of price reduction and fierce competition of similar products in the market, many domestic pharmaceutical and sales enterprises have been in trouble. In 2005, the average profit rate of domestic pharmaceutical industry was around 6.4%, and in 2006, the profit rate further decreased, approaching 4%. The decline in the profit rate of generic drugs is not enough to support the expansion of enterprises and the investment in new drug research and development. It can be predicted that in the next five years, China's pharmaceutical enterprises will undergo a major reshuffle, and those pharmaceutical enterprises that still repeatedly produce products that are saturated and uncompetitive will go bankrupt; Those enterprises that attach importance to product R&D and innovation will surely get favorable development opportunities. Product selection is a strategic choice. Choosing pharmaceutical products and product development direction is the most important link to determine the development of pharmaceutical enterprises, and it is also a strategic decision for the development of enterprises. But at this stage, many domestic pharmaceutical companies are in a dilemma when determining and selecting products. For example, the research and development of brand-new drugs protected by international patents by foreign multinational pharmaceutical companies will face the difficulties of large financial support and long research and development cycle, and at the same time face the confusion of weak domestic basic research; If we continue to develop imitation varieties, we will face fierce market competition and increasingly diluted profit returns. For enterprises that need to grow and develop, it is difficult to achieve their development goals only by producing and selling imitation varieties. There are many R&D institutions in China, which focus on copying drugs whose patent period is about to expire. Of course, with the existing level of new drug research and development in China, developing new drugs through this way has the advantages of low risk, short research and development cycle, less research and development funds and quick listing. However, with China paying more attention to intellectual property protection and international multinational pharmaceutical companies paying more attention to the patent protection of new drugs in China, it will be very difficult to develop new drugs by stealing imitations. Even if foreign drugs are not protected by patents in China, domestic R&D institutions and enterprises will scramble to copy them, and the products of dozens of enterprises will be listed at the same time, which will also form fierce market competition. If pharmaceutical companies want to grow and develop, it is certainly not a long-term solution to develop new drugs in the above way. So, how to choose new drugs and how to choose the development path of new drugs? In this regard, different enterprises should have different choices in terms of their development strategic objectives and objective status quo. At present, the innovation ability and strength of domestic pharmaceutical companies and R&D institutions in the field of drug research and development are very weak compared with international multinational pharmaceutical companies, and they simply can't afford billions of dollars in R&D expenses. According to the current situation, pharmaceutical companies and pharmaceutical R&D institutions in China can't take the R&D road of multinational pharmaceutical companies, but must take the R&D road of "imitating creation and imitating innovation", which is in line with the national policy of encouraging innovation and the development status of domestic pharmaceutical industry. This R&D idea has the following advantages: short R&D cycle, less investment, patent protection, broad market base and market prospect, and controllable R&D risks. How to choose the developed products? Is the selected product worth developing? This requires comprehensive analysis and judgment from the following aspects: first, the advantages and disadvantages of different drugs can be analyzed and judged by studying the pharmacological mechanism of drugs; Second, whether drugs can update and enrich clinical treatment methods and solve clinical drug treatment problems; Third, analyze the market prospect. Among them, analyze the market development trend and potential market capacity, and judge the application prospect of drugs in the market by comparing and analyzing the market positioning of products with competitive products; The market capacity of products should focus on the analysis of market development trends and potential markets in the next few years. There will be fierce market competition between similar drugs, and marketing means only play a icing on the cake role for products with unique curative effects. The geometric choice of new drug research and development approaches can be roughly divided into two categories: original drugs and non-original drugs. According to different development approaches and application advantages, two kinds of new drugs are described as follows: