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China Pharmaceutical Market Outlook - Government Incentives, Healthcare Reform and a Rapidly Ageing Population Provide Strong Stimulus for Growth - Product Image

China Pharmaceutical Market Outlook - Government Incentives, Healthcare Reform and a Rapidly Ageing Population Provide Strong Stimulus for Growth

  • Published: February 2013
  • Region: China
  • 65 Pages
  • GBI Research

FEATURED COMPANIES

  • Harbin Pharmaceutical
  • Jointown Pharmaceutical
  • Nanjing Pharmaceutical
  • Shanghai Pharmaceutical
  • Sinopharm
  • MORE

GBI Research’s new report: “China Pharmaceutical Market Outlook - Government Incentives, Healthcare Reform and a Rapidly Ageing Population Provide Strong Stimulus for Growth” provides in-depth analysis of the trends, issues and challenges facing the Chinese pharmaceutical market. It details the macroeconomic environment of China, providing a background of the financial and demographic situations in the country, as well as identifying key demographics. It covers the pharmaceutical market broken down by market segment, and the popularity of biosimilars and biologics, identifying where the strongest market potentials lie.

It includes information on the regulatory guidelines for the manufacture, development and distribution of pharmaceuticals. The report also covers information on the competitive landscape in the Chinese pharmaceutical market, identifying market leaders and key trends in investment. It also includes the key drivers and barriers of the pharmaceutical market in more detail. It is built using data and information sourced from proprietary databases, primary and secondary research and in-house analysis by GBI Research’s team of industry experts.

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1.1 List of Tables
1.2 List of Figures

2 China Pharmaceutical Market Outlook – Introduction

3 China Pharmaceutical Market Outlook – Macroeconomic Analysis
3.1 General Economics
3.1.1 Gross Domestic Product
3.1.2 Inflation
3.1.3 Exchange Rate
3.1.4 Trade Balance
3.1.5 Foreign Direct Investment
3.2 Demographic
3.2.1 Population Size
3.2.2 Population Distribution
3.3 Health and Healthcare
3.3.1 Healthcare Expenditure
3.3.2 Public and Private Expenditure
3.3.3 Healthcare Facilities
3.3.4 Immunization
3.3.5 Smoking and Alcohol Use Prevalence
3.3.6 Obesity
3.3.7 Life Expectancy
3.3.8 Leading Causes of Death

4 China Pharmaceutical Market Outlook – Market Segments
4.1 Branded and Generic Drugs
4.2 Over-the-Counter and Prescription Drugs
4.3 Biopharmaceuticals

5 China Pharmaceutical Market Outlook – Industry Characteristics
5.1 Pricing Policy
5.2 Regulatory Landscape
5.2.1 Drug Manufacturing Regulations
5.2.2 New Drug Approval
5.2.3 Intellectual Property Protection
5.2.4 Advertising
5.3 Healthcare Overview
5.3.1 Healthcare Reform
5.3.2 Insurance and Reimbursement
5.4 Pharmaceutical Supply Chain

6 China Pharmaceutical Market Outlook – Competitive Landscape
6.1 Domestic Companies in China
6.1.1 Sinopharm
6.1.2 Shanghai Pharmaceutical
6.1.3 Jointown Pharmaceutical
6.1.4 Nanjing Pharmaceutical
6.1.5 Harbin Pharmaceutical
6.2 Macroscopic Domestic Deals Overview
6.3 Foreign Companies in China

7 China Pharmaceutical Market Outlook – Market Drivers and Barriers
7.1 Drivers
7.1.1 Increasing Overweight and Obese Population
7.1.2 High Smoking Prevalence
7.1.3 Aging Population
7.1.4 Government Financial Support
7.1.5 Healthcare Reforms
7.1.6 Increasing Urbanization
7.2 Barriers
7.2.1 Poor Drug Quality
7.2.2 Competition from Neighboring Countries
7.2.3 Popularity of TCM
7.2.4 Increasing Labor Costs
7.2.5 Poor Intellectual Property Protection

8 China Pharmaceutical Market Outlook – Appendix
8.1 Market Definitions
8.2 Abbreviations
8.3 Bibliography
8.4 Research Methodology
8.4.1 Coverage
8.4.2 Secondary Research
8.4.3 Primary Research
8.4.4 Expert Panel Validation
8.5 Contact Us
8.6 Disclaimer

1.1 List of Tables

Table 1: Leading Causes of Death, China, Deaths per 100,000, 2009
Table 2: Branded and Generic Drugs, China, Branded/Generic Price Ratio, 2009
Table 3: OTC Pharmaceuticals, China, Top OTC Product per Class, 2010
Table 4: OTC Pharmaceuticals, China, Top 10 OTC Pharmaceutical Manufacturers, 2010
Table 5: Top Multinational Companies, China, Sales ($m) and Share of the Multinational Market (%), 2011

1.2 List of Figures

Figure 1: Gross Domestic Product, China, Value ($bn) and Annual Growth (%), 2005–2017
Figure 2: Gross Domestic Product per Capita ($), China, 2005–2017
Figure 3: Consumer Price Index, China, 2005–2017
Figure 4: Consumer Price, China, Annual Price Change (%), 2005–2017
Figure 5: Exchange Rate (USD/CNY), China, 2005–2012
Figure 6: Import of Goods and Services, China, Value ($bn) and Annual Growth (%), 2005–2017
Figure 7: Import of Goods, China, Value ($bn) and Annual Growth (%), 2005–2017
Figure 8: Import of Goods and Services Comparison, China, Value ($bn), 2005–2017
Figure 9: Export of Goods and Services, China, Value ($bn) and Annual Growth (%), 2005–2017
Figure 10: Export of Goods, China, Value ($bn) and Annual Growth (%), 2005–2017
Figure 11: Export of Goods and Services Comparison, China, Value ($bn), 2005–2017
Figure 12: Trade Balance, China, Value ($bn), 2005–2017
Figure 13: Foreign Direct Investment, China, Net Investment ($bn), 2005–2011
Figure 14: Population Size, Three Most Populous Countries, Population (billion), 2005–2017
Figure 15: Annual Population Growth, China, Percentage (%), 2005–2017
Figure 16: Crude Birth and Death Rates, China, Rate (Per 1,000 People), 2005–2012
Figure 17: Population Distribution by Age, China, Percentage (%), 2000–2020
Figure 18: Population Distribution by Gender, China, Percentage (%), 2011
Figure 19: Population Distribution by Region, China, Percentage (%), 2005–2015
Figure 20: Population Size by Region, China, Population (million), 2005–2017
Figure 21: Healthcare Expenditure (% of GDP), Global, 2010
Figure 22: Healthcare Expenditure (% of GDP and $bn), China, 2005–2011
Figure 23: Healthcare Expenditure per Capita ($), China, 2005–2011
Figure 24: Healthcare Expenditure, China, Rural and Urban Distribution (%), 2009
Figure 25: Public and Private Healthcare Expenditure, China, Percentage of Total Healthcare Expenditure (%), 2005–2011
Figure 26: Government Healthcare Expenditure, China, Percentage of Government Expenditure (%), 2005–2011
Figure 27: Out-of-Pocket Healthcare Expenditure, China, Percentage of Private Healthcare Expenditure (%), 2005–2011
Figure 28: Healthcare Organizations, China, Distribution (%), 2009
Figure 29: Urban and Rural Hospitals, China, Distribution (%), 2009
Figure 30: Hospital Bed Availability, China, Hospital Beds per 1,000 People, 2002–2011
Figure 31: Physician Availability, China, Physicians per 1,000 People, 2002–2011
Figure 32: Children Immunized against DPT and Measles, China, Percentage (%), 2002–2011
Figure 33: Smoking Prevalence, China, Percentage of Population (%), 2009–2010
Figure 34: Alcohol Use Prevalence, China, Percentage of Population (%), 2010
Figure 35: Alcohol Use Prevalence, China, Total Pure Alcohol Consumption (billion liters), 2007–2017
Figure 36: Overweight Population, China, Proportion of Population (%), 2005–2015
Figure 37: Life Expectancy (Years), China, 2005–2017
Figure 38: Branded and Generic Drugs, China, Market Share by Hospital, 2010
Figure 39: Branded and Generic Drugs, China, Revenue Market Share by Therapeutic Category (%), 2010
Figure 40: Branded and Generic Drugs, China, Sales Quantity Market Share by Therapeutic Category (%), 2010
Figure 41: Generic Drugs, China, Breakdown by Therapeutic Category (%), 2008
Figure 42: Pharmaceutical Market, China, Breakdown by Market Segment (%), 2009
Figure 43: OTC Market, China, Breakdown by Product Type (%), 2011
Figure 44: Biopharmaceuticals Market, China, Breakdown of Product Types by Sales (%), 2010
Figure 45: Domestic Deals, China, Types of Deals, 2007–2012

China Becoming Pharma Production Hub

China remains an attractive target for pharmaceutical research and manufacturing, and major players from around the world are flocking to benefit from cut-price production, states a new report by GBI Research.

The new report* states that China is an attractive option for pharmaceutical outsourcing, as drug development costs approximately 20% less than in the West, and takes less development time. Several multinational players are outsourcing to China and cutting jobs in Western regions, in order to offset financial losses from the impending patent cliff.

The Chinese boasted the third largest pharmaceutical market in the world in 2011, with an estimated value of approximately US$64 billion, and the country also represents the world’s largest exporter of goods. The Chinese pharmaceutical market is currently highly fragmented, but consolidation is increasingly being sought among domestic players. The majority of deals made in the Chinese pharmaceutical industry are mergers and acquisitions, which allow companies to integrate resources and reduce competition, while phasing out independent companies which are unable to keep up.

Many multinational companies are simply placing orders with contract research organizations and contract manufacturing organizations, but some are working closely with top domestic players. A high number of deals have taken place within the biotechnology industry, the majority with foreign companies – for instance, GSK’s co-marketing agreement with Sinopharm for the distribution of its vaccines in China, or ImmunoBiology’s agreement with Sinopharm to co-develop a tuberculosis vaccine. Several multi-nationals are also completing mergers and acquisitions with domestic companies to help integrate themselves into the market. For instance, GSK has purchased Nanjin Melrul Pharmaceutical Company, and Sanofi has purchased Minsheng Pharma in order to improve its presence in the OTC market.

However, poor drug quality and flawed intellectual property laws make companies hesitant to invest in Chinese pharmaceutical firms. Although China has tightened its regulations in recent years, stories of poor drug quality continue to slip through the cracks, and intellectual property rights are also threatened. The Chinese government implemented a new licensing law in July 2012 allowing them to issue compulsory licenses to domestic pharmaceutical companies for the manufacture of cheap generic copies of patented drugs, in the case of emergency or public interest. This could dissuade international pharmaceutical companies from investing in drug development, potentially setting back innovative drug research.

China also faces competition from popular outsourcing neighbor, India. India’s labor costs tend to be lower, making the country an appealing prospect to investors, and posing a threat to China’s pharmaceutical market success.

*China Pharmaceutical Market Outlook - Government Incentives, Healthcare Reform and a Rapidly Ageing Population Provide Strong Stimulus for Growth

The report is built using data and information sourced from proprietary databases, primary and secondary research and in-house analysis by GBI Research’s team of industry experts.

- Harbin Pharmaceutical
- Jointown Pharmaceutical
- Nanjing Pharmaceutical
- Shanghai Pharmaceutical
- Sinopharm

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