Why China's expanding pharma market is still a risky bet
July 21, 2012 | BY
clpstaff &clp articlesChina's pharmaceutical market is expanding rapidly, but recent policy developments mean multinationals need to rethink their strategy
Statistics from CITI predict China will have a $200 billion pharmaceutical market by 2020, making it the second largest in the world. “This begs the question can multinationals afford not to expand considering how fast the market is growing compared to the global market?” said Christoph Hezel, a lawyer specialising in healthcare at Taylor Wessing in Beijing.
This expected growth should translate into exciting growth opportunities for healthcare multinationals. But policy developments and government pressure to increase healthcare access while controlling costs are taking a toll.
In order to sell drugs in China, companies must get their drug listed on the national list. At the same time, listed drugs are subject to a capped price that gives a profit margin of around 20% for brand name drugs.
This premium content is reserved for
China Law & Practice Subscribers.
A Premium Subscription Provides:
- A database of over 3,000 essential documents including key PRC legislation translated into English
- A choice of newsletters to alert you to changes affecting your business including sector specific updates
- Premium access to the mobile optimized site for timely analysis that guides you through China's ever-changing business environment
Already a subscriber? Log In Now