China is expected to become the third largest pharma market in the world by 2011 on the back of government’s increasing efforts to improve its healthcare infrastructure.
A latest research by IMS Health projects that China will be the world’s third largest pharma market in 2011, as per the news published by in-Pharma
IMS marked that China’s pharma revenue is growing at a high speed, which is expected to push the market to double by 2013. It also said that there will be a growth of $40 Billion through 2013 in drug revenue.
According to the statistics released by the Ministry of Industry and Information Technology, Chinese pharma industry’s value-added output recorded year on year growth of 14.9% in 2009. In fact, the medicine sector saw combined net profit of RMB 89.6 Billion in the first 11 eleven months of 2009, representing year on year growth of 25.9%.
The pharma market of the country is witnessing this growth due to the government’s efforts to improve the healthcare infrastructure and its aim to attain near-universal health coverage. In addition to this, the current realignment going on in the market has also been backed by the considerable shifts in the economic and healthcare landscape-taking place at the global level (including increasing levels of healthcare funding and access) as well as changes in generic and innovative products.
Here it is noteworthy that the annual growth of pharma sales in mature markets of Western Europe and the United States has retarded to low single digits in past few years. Global recession has definitely been the biggest reason responsible for this, but there are several other critical reasons also, like increasing use of generics, patent expiration of several branded drugs, government’s tighter restriction on the pharma market and reduced investment in the field of biotechnology.
Discussing China’s pharma market in further detail, leading market research firm RNCOS
says in its report titled “Emerging Pharmaceutical Markets Globally
” that generic drugs and other copied products continue to dominate the country’s pharma market, where patented brands account for a small chunk. The report, however, projects that the share of patented drugs is expected to increase in future.
According to a Research Analyst at RNCOS
, “Although market for Traditional Chinese Medicine enjoys the major share in China, prospects are bright for western drugs in future as these drugs are now being promoted by the government. Thus, international pharma players should now focus on China to tap this potential.”
Related Market Research Reports:
Russian Pharma Sector Forecast to 2013
Global Pharmaceutical Market Forecast to 2012
Asia Pacific Pharma Sector Analysis