Interest from China
Why you should consider China’s healthcare market
The Chinese government has taken on a renewed commitment to improve healthcare access, creating millions of new pharmaceutical customers for your company. China’s middle class – the world’s largest – is projected to grow from 300 million to 700 million by 2020. China is forecasted to become the world’s second largest drug market by 2015.
Domestic pharmaceutical companies are jostling to be the most important and influential.
– Those in the Top 20 need to differentiate to compete.
– Those outside the Top 20 need new avenues of growth to break through.
Both groups have identified international products and technologies as an immediate opportunity to achieve their goals.
– Sales, marketing, and distribution is already in place.
– Funding of registration costs and clinical studies is not a barrier.
Large healthcare funds have been established in partnership with public healthcare companies to inject more capital and speed into the race.
Navigating a complex and highly competitive market is already difficult, but with the added challenge of a distinctly different business culture, it’s clear why choosing the right partner is key to successfully tapping the Chinese market.
Healthcare Industry in China
The Chinese healthcare industry is very fragmented.
– Over 3,000 healthcare, pharmaceutical, life sciences, and medical device companies in China
– Shakeout: Firms are competing to be the leader.
Chinese firms have too many similar, low-end products.
– Short product life cycle due to commoditization
– Shrinking profit margin despite sales growth
– R&D spending is much lower than Europe and the US; companies lack innovation.
China’s IPO boom has created a windfall of capital.
– Investors will soon begin to demand growth plans to match valuations.
– Deals will become the currency of those who lead the markets.
– Chinese firms are looking outside the country to find immediately available innovation.
Current Market Interest
Companies are seeking unique products with:
- Major indications (cancer, diabetes, etc.)
- Large target populations
- Mass market pricing
- Broad distribution
The immediate focus for the majority of domestic healthcare companies is the amount of time to revenue. They are all looking to build larger portfolios of products that generate cash flow to both support public listings and rapidly establish a market reputation.
For this reason, based on time-to-market, prioritization is as follows:
Connect with us to discuss opportunities in China.