China has experienced rapid growth, going from the 9th largest pharmaceuticals market in the world in 2007 to 2nd in 2019.The Chinese pharmaceutical market is forecasted to grow at a compound annual growth rate (CAGR) of 6.9% (±2.5%) between 2015 and 2020, reaching USD149 billion by 2020. Conducive Pharmaceutical Business Environment, intention to Healthcare Provision for all, Prescribing and Dispensing of new specialty products, Better supervision over Drug Pricing, Easing of Drug Regulatory Environment & Clinical Trials are leading to a growth oriented & sustainable Pharmaceutical Industry Model for China.
Strong Growth projections for China Pharma Industry – In 2017, the China’s pharmaceutical industry was worth $122.6 billion and that is forecast to rise upto $175 billion by 2022.
Strong long-term sustained growth projection: As per the Statistics available China Pharmaceutical growth between 2017 & 2030 is going to be 230% which is going to be significantly higher than world average Pharmaceutical industry growth of 160% in the same period.
The world’s largest population base at 1.401 billion – More head counts make China a big commercial market. China’s rapid growth in recent times and the emergence of a strong middle-class population provides incentive to invest in this market.
China as a low-cost centre for R&D – There are factors like 1. Rising cost pressure 2. Shorter Product life cycles 3. Stringent Regulatory requirements in western countries 4. Patent Issues which are putting pressure on the Pharma Multinationals to develop their R&D base in the low-cost countries like China & India.
The “Made in China 2025” initiative: It is a 10-year plan launched in 2015 which aims to develop 10 High-tech industries. This program has included biopharma and advanced medicinal products industry into this list of 10 focused industries.
China’s presents itself as a large pharma market with a strong growth potential – Universal Health Coverage Index by World Bank clearly shows China as a top runner in the race. This intention to provide better health coverage to its population provides a big impetus to Pharma Companies to set their base in China & invest more in pharma sector.
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