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Pharmaceutical Industry in China

  • ID: 1946026
  • Report
  • October 2012
  • Region: China
  • 240 Pages
  • Taiyou Research
1 of 5


  • AstraZeneca
  • Eli Lilly (Lilly China)
  • Jilin Aodong Medicine
  • Merck KGaA
  • Pfizer Inc.
  • Sanofi SA
  • MORE
China has one of the world's top ten largest pharmaceutical markets. The pharmaceutical industry in China is a booming sector as it covers not only pharmaceutical drugs, but also synthetic chemicals and drugs, prepared Chinese medicines, medical devices, apparatus and instruments, hygiene materials, packing materials, and pharmaceutical machinery. China's pharmaceutical market has experienced significant growth in recent years, fueled by increasing wealth among its own population as well as the accelerating global demand for cheap, effective medicines to treat ailments ranging from high cholesterol to HIV/AIDS.

Yet, the country is plagued by worrying incidents, in some cases deadly ones, of poor drug quality. While these pharmaceutical production problems are not exclusive to China, they have tarnished its reputation abroad. Fears have been exacerbated by Beijing's failure to acknowledge quality shortcomings quickly. Most exports to wealthy industrialized countries which are monitored by pharmaceutical manufacturers policing their own supply chains and by strict drug regulatory authorities appear to be of high quality. However, data collected by European Union customs officials also show that China is among the world's top four exporters of counterfeit pharmaceuticals. Fears over intellectual property protection also plague the Chinese pharmaceutical industry.

However, with the sweeping reforms carried out by the Chinese government in a bid to ease international fears about its pharmaceutical and healthcare industries, the industry is undergoing significant change, as well as looking at major changes in the coming years.

Top players in the Chinese pharmaceutical industry by far remain China National Pharmaceutical Group Corp (Sinopharm), Shijiazhuang Pharma Group, Wuxi Pharmatech, Harbin Pharmaceutical Group Co., amongst other multinational players. Many foreign players such as AstraZeneca, Pfizer Inc, Bayer, GSK, etc., have already established themselves firmly in the market and are expanding their services regularly within the country. With the entry of foreign players in the industry, the competition amongst players has significantly been stepped up, along with the quality of pharmaceutical manufacturing processes.

The increase of disposable income, the elevation of urbanization level and the country’s aging population are all factors boosting China’s pharmaceutical industry in the near future. With China being a major outsourcing hub for the global pharmaceutical industry, there is no doubt that the future of the Chinese pharmaceutical industry holds substantial growth potential as well.

In this industry scenario, Taiyou Research analyzes the Pharmaceutical Industry in China. The report covers the following:

- Overview of the Chinese pharmaceutical industry containing an industry definition, market statistics, market value, industry segments and structure, and an industry value chain analysis. The value chain analysis looks at the industry through raw material manufacturers, pharma companies, drug distribution companies, medical service providers, and buyers of healthcare.

- Market analysis section is an in-depth analysis of the industry. This includes a market profile, growth profile of the market for the OTC market, market for prescription drugs, and the generics market. Healthcare reforms that have recently been changing the industry landscape are analyzed. Unstable and fragment distribution channels of the industry, the pharmaceutical sales channels, and the expansion and consolidation of pharmacies in China are all analyzed in this section.

Following on from an analysis of the healthcare reforms in China, we analyze the regulatory framework.

- The section on regulatory framework looks at industry regulations, regulatory agencies, challenge of IP protection in China along with the challenge of counterfeit medicines. The implementation of pricing controls and price cuts are analyzed. The drug reimbursement regime and GMP compliance certification are looked at. We also carry out a comparison between the pharma regulations in China versus other countries.

- Industry trends and opportunities are analyzed keeping in mind the trends in the healthcare sector, trends in the hospital sector, as well as the high level of competition amongst players in the industry. Mergers and acquisitions and the entry of foreign multinationals in the industry are also analyzed.

- Research and development in the industry, clinical trials in China, and the market for Active Pharmaceutical Ingredients (APIs) are also analyzed in this report, along with a look at the Chinese vaccines market.

Moving on to framework analyses, we analyze the Chinese Pharmaceutical Industry in a SWOT analysis, a PEST analysis, and a Porter's Five Forces analysis.

- An analysis of the generic drug sector in China, biotechnology sector, as well as the ever-prominent traditional Chinese medicine (TCM) sector is included in the report.

- We also carry out an analysis of the medical devices market in China, complete with a market profile, growth drivers, and value chain analysis.

- Competition in the industry is of course fierce, and we dedicate an in-depth section on analyzing the same. The report contains an overall industry competitive profile, the market view of competition, the increasing role of multinationals in the industry along with an analysis of the major strategies of some major foreign players in China. Competition amongst domestic players and amongst pharma companies venturing into biotechnology are also analyzed. With TCM making up a substantial chunk of the market, we take a look at the competition from Traditional Chinese Medicines as well as the competition in the generics market.

- Major industry players are analyzed in two segments - leading domestic companies and leading multinational companies.

An in-depth industry forecast completes this comprehensive and cutting-edge report on the Pharmaceutical Industry in China.
Note: Product cover images may vary from those shown
2 of 5


3 of 5


  • AstraZeneca
  • Eli Lilly (Lilly China)
  • Jilin Aodong Medicine
  • Merck KGaA
  • Pfizer Inc.
  • Sanofi SA
  • MORE
1. Executive Summary

2. Industry Overview
2.1 Industry Definition
2.2 Market Statistics
2.3 Market Value
2.4 Industry Segments
2.5 Industry Structure
2.6 Industry Value Chain Analysis

3. Market Analysis
3.1 Market Profile
3.2 High Growth Market
3.2.1 OTC Market
3.2.2 Market for Prescription Drugs
3.2.3 Generics Market
3.3 Healthcare Reforms
3.3.1 National Essential Drug List
3.3.2 Streamlining of the Purchase Process
3.3.3 Consolidation in the Drug Delivery & Distribution Sector
3.3.4 12th Five Year Plan and Healthcare Reforms
3.4 Unstable and Fragmented Distribution Channels
3.5 Pharmaceutical Sales Channels
3.6 Expansion and Consolidation of Pharmacies

4. Regulatory Framework
4.1 Industry Regulations
4.2 Regulatory Agencies
4.3 Challenge of Intellectual Property Protection
4.4 Challenge of Counterfeit Medicines
4.5 Implementation of Pricing Controls
4.6 Government Imposed Price Cuts
4.7 Drug Reimbursement Regime
4.8 GMP Compliance Certification
4.9 Chinese Pharmaceutical Regulations versus Other Countries

5. Industry Trends
5.1 Overview
5.2 Regional Trends
5.3 Epidemiology
5.4 Trends in Communicable Diseases
5.5 Trends in Non-Communicable Diseases
5.6 Impact of Lifestyle Diseases
5.7 Trends in the Healthcare Sector
5.8 Trends in the Hospital Sector
5.9 High Level of Competition amongst Players
5.10 Foreign Expansion of Domestic Companies

6. Industry Opportunities
6.1 Overview
6.2 Major Pharma & Biotech Outsourcing Hub
6.2.1 Vast Patient Pool
6.2.2 Large Talent Pool
6.2.3 Growing CRO Market
6.3 Reshaping the Quality Standards of the Chinese Pharma Market
6.4 Mergers & Acquisitions
6.5 Requirement of Innovation and R&D Investment
6.6 Incentives and Funding for the Industry
6.6.1 Venture Capital and IPO Prospects

7. Research & Development in the Industry

8. Clinical Trials in China

9. Market for Active Pharmaceutical Ingredients (APIs)

10. Vaccines Market in China

11. China Pharmaceutical Industry: SWOT Analysis
11.1 Strengths
11.2 Weaknesses
11.3 Opportunities
11.4 Threats

12. China Pharmaceutical Industry: PEST Analysis
12.1 Political Factors
12.2 Economic Factors
12.3 Social Factors
12.4 Technological Factors

13. China Pharmaceutical Industry: Porter’s Five Forces Analysis
13.1 Buyer Power
13.2 Supplier Power
13.3 Competitive Forces
13.4 Threat of Entrants
13.5 Presence of Substitutes
13.6 Conclusion

14. Generic Drug Sector in China
14.1 Industry Definition
14.2 Market Profile
14.3 Market Value & Volume
14.4 Industry Segmentation

15. Snapshot Profile: Biotechnology in China
15.1 Market Overview
15.2 China and Biosimilars

16. Snapshot Profile: Market for Traditional Chinese Medicine (TCM)

17. Market for Medical Devices in China
17.1 Market Profile
17.2 Growth Drivers
17.3 Value Chain Analysis

18. Competition in the Industry
18.1 Competitive Profile
18.2 Market View
18.3 Increasing Role of Multinationals in the Industry
18.3.1 Key Strategies of Pfizer in China
18.3.2 Key Strategies of AstraZeneca in China
18.3.3 Key Strategies of Bayer in China
18.3.4 Key Strategies of Eli Lilly in China
18.3.5 Key Strategies of GlaxoSmithKline in China
18.3.6 Key Strategies of Johnson & Johnson in China
18.3.7 Key Strategies of Merck in China
18.3.8 Key Strategies of Novartis in China
18.3.9 Key Strategies of Novo Nordisk in China
18.3.10 Key Strategies of Roche in China
18.3.11 Key Strategies of Sanofi in China
18.4 Competition amongst Domestic Drug Makers
18.5 Chinese Pharma Companies Investing in Biotech
18.6 Competition in the Generics Market
18.7 Competition from Traditional Chinese Medicines

19. Major Industry Players
19.1 Market Share Analysis
19.2 Leading Domestic Companies
19.2.1 China National Pharmaceutical Group Corporation (Sinopharm)
19.2.2 China Greatvista Chemicals
19.2.3 China Nepstar Chain Drugstore Ltd.
19.2.4 China Shijiazhuang Pharmaceutical Group (CSPC)
19.2.5 Harbin Pharmaceutical Group Co., Ltd.
19.2.6 Hubei Biocause Pharmaceutical
19.2.7 Jilin Aodong Medicine
19.2.8 Nanjing Ange Pharmaceutical
19.2.9 North China Pharmaceutical Corporation (NCPC)
19.2.10 Shanghai Pharmaceutical
19.2.11 Simcere Pharmaceutical
19.2.12 WuXi PharmaTech
19.2.13 Yangtze River Pharmaceutical Group
19.2.14 Yunnan Baiyao Group
19.3 Leading Multinational Companies
19.3.1 AstraZeneca
19.3.2 Bayer Schering Pharma
19.3.3 Eli Lilly (Lilly China)
19.3.4 GlaxoSmithKline Plc
19.3.5 Merck & Co
19.3.6 Merck KGaA
19.3.7 Novartis
19.3.8 Pfizer Inc.
19.3.9 Roche
19.3.10 Sanofi SA

20. China Pharmaceutical Industry: Industry Forecast
20.1 Industry Forecast
20.2 Forecast for Healthcare Spending
20.3 Forecast for the Generic Drug Sector
20.4 Forecast for OTC Medicine Sector
20.5 Forecast for Prescription Drug Sector
20.6 Forecast for Patented Drug Sector
20.7 Forecast for Medical Devices Market
20.8 Forecast for Import/Export of Pharmaceutical Products
20.9 Forecast for Healthcare Facilities

21. Appendix

22. Glossary

List of Figures

Figure 1: Market Value of Chinese Pharmaceutical Market (2006-2010) (USD Billion)
Figure 2: Market Segments
Figure 3: Industry Segmentation of the Chinese Pharmaceutical Sector, 2010
Figure 4: China's Share in the Global Pharmaceutical Industry, 2010
Figure 5: Chinese Pharmaceutical Industry Value Chain Analysis
Figure 6: Player Distribution along China’s Pharmaceutical Supply Chain
Figure 7: China Pharmaceutical Industry Stakeholder Profit Margins
Figure 8: Global Pharmaceutical Market Rank
Figure 9: Indexed Growth of China Healthcare Costs
Figure 10: Growth of China's Pharmaceutical Market
Figure 11: Healthcare Reform Blueprint through 2020
Figure 12: Implications of Healthcare Reforms
Figure 13: Domestic Drug Sales by Distribution Terminals
Figure 14: National Reimbursement Drug List - 2004 & 2009
Figure 15: Burden of Disease Projection
Figure 16: Trends in Pharmaceutical M&A in China
Figure 17: China's Share in the Global Generics Industry, 2010
Figure 18: Medical Device Sales vs. Production Ratio in China
Figure 19: Registered Pharmaceutical and Medical Device Manufacturers and Distributors in China
Figure 20: Market Share of Leading Players
Figure 21: Forecast for the Chinese Pharmaceutical Industry (2006-2020)
Figure 22: Forecast for Healthcare Expenditure in China (2006-2020)
Figure 23: Forecast for the Chinese Generic Drug Market
Figure 24: Forecast for the Chinese OTC Medicine Sector
Figure 25: Forecast for the Prescription Drug Market
Figure 26: Forecast for the Chinese Patented Drug Market (2006-2020)
Figure 27: Forecast for the Chinese Medical Devices Market
Figure 28: Forecast for China's Pharmaceutical Trade (USD Million) (2006-2015)
Figure 29: Value of Sales Shared by Different Pharmaceutical Manufacturers in China’s 19 Largest Cities
Figure 30: China Distribution Channels Overview
Figure 31: China to Become the 2nd Largest Drug Market by 2020 (US$bn)
Figure 32: China Pharmaceuticals’ Share of Overall Market Capitalization Higher Than That in the US
Figure 33: New Drug Application Process in China

List of Tables

Table 1: Market Value of Chinese Pharmaceutical Market (2006-2010) (USD Billion)
Table 2: Industry Segmentation of the Chinese Pharmaceutical Sector, 2010
Table 3: China's Share in the Global Pharmaceutical Industry, 2010
Table 4: Some Notable M&A Transactions in 2010 in the Chinese Pharmaceutical Industry
Table 5: Increasing Number of R&D Centers by Foreign Companies
Table 6: China's Share in the Global Generics Industry, 2010
Table 7: Chinese Medical Device Exports and Imports by Device Type, First Half of 2010
Table 8: Major Medical Device Updates in Selected Types of Health Care Institutions Invested in by the Chinese Government
Table 9: Sample Comparison of Import and Export Price for Medical Devices in China, 2010
Table 10: Top 10 Pharma Multinationals in China in Q1 2011
Table 11: Leading Domestic Pharmaceutical Companies according to Market Capitalization Q1 2011
Table 12: Market Share of Leading Players
Table 13: Forecast for Pharmaceutical Sales (2007-2015)
Table 14: Forecast for Healthcare Expenditure in China (2007-2015)
Table 15: Forecast for Government Healthcare Expenditure in China (2007-2015)
Table 16: Forecast for Private Healthcare Expenditure in China (2007-2015)
Table 17: Forecast for Sales of Generic Drugs in China (2007-2015)
Table 18: Forecast for OTC Medicine Sales in China (2007-2015)
Table 19: Forecast for Prescription Drug Sales in China (2007-2015)
Table 20: Forecast for the Chinese Patented Drug Market (2007-2015)
Table 21: Forecast for Sales of Medical Devices in China
Table 22: Forecast for Pharmaceutical Import and Export in China (2007-2015)
Table 23: Primary Sales Channel and Market Drivers for Different Types of Medicine
Table 24: Rationale for Classification of New Chemical Entities in China
Table 25: New Drug Marketing Exclusivity
Table 26: Timeframe for New Drug Review
Note: Product cover images may vary from those shown
4 of 5
- China National Pharmaceutical Group Corporation (Sinopharm)
- China Greatvista Chemicals
- China Nepstar Chain Drugstore Ltd.
- China Shijiazhuang Pharmaceutical Group (CSPC)
- Harbin Pharmaceutical Group Co., Ltd.
- Hubei Biocause Pharmaceutical
- Jilin Aodong Medicine
- Nanjing Ange Pharmaceutical
- North China Pharmaceutical Corporation (NCPC)
- Shanghai Pharmaceutical
- Simcere Pharmaceutical
- WuXi PharmaTech
- Yunnan Baiyao Group
- AstraZeneca
- Bayer Schering Pharma
- Eli Lilly (Lilly China)
- GlaxoSmithKline Plc
- Merck & Co
- Merck KGaA
- Novartis
- Pfizer Inc.
- Roche
- Sanofi SA
Note: Product cover images may vary from those shown
5 of 5
Note: Product cover images may vary from those shown