China Pharmaceuticals and Healthcare Report Q2 2012

Published: Apr 13, 2012

NEW YORK, April 12, 2012 /PRNewswire/ -- announces that a new market research report is available in its catalogue:

China Pharmaceuticals and Healthcare Report Q2 2012

Includes 3 FREE quarterly updates

BMI View: 2012 is a very important year for the country as the government look to carry on their

achievements following the healthcare reform in 2009. We highlight that the expansion of the National

Essential Drug List (NEDL) slated to happen this year will bring strong opportunities for pharmaceutical

companies especially domestic firms while multinationals will benefit from the increase in medical

insurance coverage in the National Drug Reimbursement List. China's 12th five-year healthcare plan, if

executed smoothly, will allow the country to maintain its position as the world's most attractive emerging

pharmaceutical market.

Headline Expenditure Projections

- Pharmaceuticals: CNY432bn (US66.7bn) in 2011to CNY520bn (US$81.3bn) in 2012; +20.4%

in local currency and +21.6% in US dollar terms.

- Healthcare: CNY1,876bn (US$290bn) in 2011 to CNY2,073bn (US$324bn) in 2012; +10.5%

in local currency terms and +16.6% in US dollar terms.

- Medical Devices: CNY140bn (US$21.6bn) in 2011 to CNY158bn (US$24.7bn) in 2012;

+13.3% in local currency terms and +14.5% in US dollar terms.

Risk/Reward Rating: China's score of 62.5 is a decline from Q112, causing it to slip in ranking from

fourth on our proprietary index to fifth, ahead of Taiwan but behind Singapore. The country lags behind

Singapore in terms of per-capita pharmaceutical and health expenditure.

Key Trends And Developments

- In February 2012, Pfizer signed a framework agreement with Chinese company Zhejiang Hisun

Pharmaceutical to set up a joint venture (JV) to develop, produce and commercialise generic

pharmaceutical products in China and other markets. According to the agreement, the JV will be

called Hisun Pfizer Pharmaceutical, with Hisun owning 51% and Pfizer owning 49%. The

aggregate investment and registered capital will total US$295mn and US$250mn respectively.

Both parties could contribute some existing products, cash, manufacturing sites and other assets

after the formation of the JV, which is subject to closing conditions, including the approval of the

authorities in China.

- In January 2012, the State Food and Drug Administration approved Novartis' wet (neovascular)

age-related macular degeneration (AMD) treatment Lucentis (ranibizumab). Wet AMD causes

blindness and severe vision loss in patients over 50 and there are about 300,000 new cases

diagnosed a year in China alone. Novartis will also launch its oral type 2 diabetes treatment

Galvus (vildagliptin) in China as an additional medication to complement metformin. Type 2

diabetes affects 75mn Chinese people; more than in any other country. The release of both

treatments indicates Novartis' commitment to providing innovative healthcare solutions to

emerging markets.

BMI Economic View: The spike is China's headline consumer price inflation figure in January to 4.5%

year-on-year (y-o-y), while a concern, appears to mask the underlying trend of disinflation evident in core

inflation and producer price inflation. With money supply growth still historically weak, and housing

market weakness gathering pace, we maintain our average CPI forecast of 3.1% for 2012, and still see

two 25 basis points interest rate cuts as growth and inflation fall further.

BMI Political View: China faces myriad economic, social and environmental challenges over the coming

decades that could seriously test the Communist Party's ability to govern. The best-case scenario for any

eventual political transition would entail an elite-led liberalisation of the authoritarian system, while the

worst case scenario would involve a violent change of regime.

Executive Summary . 5

SWOT Analysis . 7

China Pharmaceuticals And Healthcare Industry SWOT .. 7

China Political SWOT ... 8

China Economic SWOT . 9

China Business Environment SWOT .. 9

Pharmaceutical Risk/Reward Ratings .. 10

Table: Asia Pacific Pharmaceutical And Healthcare RRRs, Q212 .. 10

Rewards ... 11

Risks 11

China Market Summary .. 12

Regulatory Regime . 14

Intellectual Property Issues . 16

Counterfeit Medicines .. 18

Pricing Regime 19

Price Cuts 20

Reimbursement Regime 22

Industry Trends and Developments . 24

Epidemiology ... 24

Communicable Diseases .. 25

Non-Communicable Diseases .. 25

Healthcare Sector 27

Hospital Sector 28

R&D Activity 29

Selected List Of MNC With R&D Bases In China 30

Clinical Trials Activity . 32

Biotechnology Sector ... 34

Active Pharmaceutical Ingredients .. 36

Vaccine Sector . 37


Forecast Scenario

... 39

Overall Market Forecast.. 39

Table: Pharmaceutical Sales Indicators 2008-2016 40

Key Growth Factors Industry 41

Table: Healthcare Expenditure Indicators 2008-2016 . 41

Table: Healthcare Governmental Indicators 2008-2016 . 42

Table: Healthcare Private Indicators 2008-2016 42

Key Growth Factors Macroeconomic Forecast 44

Table: China Economic Activity, 2011-2016 47

Prescription Drug Market Forecast . 48

Table: Prescription Drug Sales Indicators 2008-2016 49

Patented Drug Market Forecast .. 50

Table: Patented Drug Market Indicators 2008-2016 ... 51

Generic Drug Market Forecast 52

Table: Generic Drug Sales Indicators 2008-2016 ... 53

OTC Medicine Market Forecast .. 54

Table: OTC Medicine Sales Indicators 2008-2016 .. 56

Medical Device Market Forecast . 57

Table: Medical Devices Sales Indicators, 2008-2016 .. 59

Pharmaceutical Trade Forecast .. 60

Table: Exports and Imports Indicators 2008-2016 .. 61

Other Healthcare Data Forecasts 62

Key Risks To BMI's

Forecast Scenario


Competitive Landscape . 64

Pharmaceutical Industry .. 64

Top 20 China Or Hong Kong-Based Pharmaceutical Companies According To Market Capitalisation . 64

Recent Pharmaceutical Industry Developments ... 65

Traditional Chinese Medicine .. 66

Company Profiles ... 70

Leading Local Companies 70

Sinopharm 70

China Shijiazhuang Pharmaceutical Group (CSPC) ... 72

North China Pharmaceutical Corporation (NCPC) . 74

Hubei Biocause Pharmaceutical .. 76

Shanghai Pharmaceutical 78

Leading Multinational Companies 80

GlaxoSmithKline .. 80

Pfizer ... 82

AstraZeneca . 85

Merck KGaA 88

Sanofi ... 90

Novartis ... 92

Roche ... 95

Eli Lilly (Lilly China) ... 97

Merck & Co . 99

Bayer Schering Pharma ..101

Country Snapshot: China Demographic Data ... 104

Section 1: Population ..104

Table: Demographic Indicators, 2005-2030 ...104

Table: Rural/Urban Breakdown, 2005-2030 ..105

Section 2: Education and Healthcare .105

Table: Education, 2002-2005 .105

Table: Vital Statistics, 2005-2030 ...105

Glossary 106

BMI Methodology . 108

How We Generate Our Pharmaceutical Industry Forecasts 108

Risk/Reward Ratings Methodology .109

Ratings Overview 109

Table: Pharmaceutical Business Environment Indicators ..110

Weighting 111

Table: Weighting Of Components ...111

To order this report:

Drug and Medication Industry: China Pharmaceuticals and Healthcare Report Q2 2012

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Nicolas Bombourg
US: (805)652-2626
Intl: +1 805-652-2626

SOURCE Reportlinker

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