The Influence Of Pharmaceutical Concentration On Drug Price

With the economic globalization, the development of China’s pharmaceutical enterprises faced with challenges. The current situation is that the small-sized enterprise is more, and the large enterprise is less. The industry concentration is low, and the price of drug is high. The new direction of the current proposed health reform medicine is to equilibrium market structure. Pharmaceutical industry concentration effect on market prices was research and analysised, industrial concentration was the breakthrough.First of all, the industry structure was launched to investigate. It analyzed the current pattern of China’s pharmaceutical enterprises, by the way of proportion concentration and market concentration. It getted the result that was the current concentration of pharmaceutical industry market was low and the market was competitive. The main factors that affect the pharmaceutical industry concentration is "the sales capability", "drug efficacy", "scale of economies", "medical and health system policy".Secondly, though the mangement of maket, it found that the drug price was volatile with the time. Through the industry survey data and historical data rate of corporate earnings, it built the mathematical model between the industrial concentration and corporate profitability. Though the model we know, if the corporate concentration was higher, the price of the pharmaceutical market would be lower. There is a positive change in the relationship between the speed and the degree of corporate concentration of changes in market prices.Finally, it put forward policy at the government level and the enterprise level. It hopes that the government promoted the management capablity of the pharmaceutical market. It hopes the government to enhance the influence of pharmaceutical policy and optimize the organizational structure, expand the scale of the pharmaceutical industry, introduce the advanced technology of foreign county. And It hopes the corporate to improve their overall strength level, strengthen their differentiated development of product quality, strengthen its market management and reduce the risk of business expansion. To determ a reasonable profit, enterprises developped appropriate drug prices, in order to enhance their status in the industry.This thesis was divided into six parts. Chapter 1 is the introduction. It discussesed the industry and market price background and current research status. Chapter 2 was the basis of relevant theories. Chapter 3 analyzed the current industrial concentration of the pharmaceutical industry. Chapter 4 analyzes the pharmaceutical industry concentration and market price relationships. Chapter 5 was policy. Chapter 6 is a summary.According to the research, the pharmaceutical industry concentration and market price related closely. To face with medicine prices artificially high, government departments should intensify medical and health system, improve industrial concentration.