BMI's Executive Summary

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Despite only achieving fifth place on BMI's completely overhauled Business Environment Rankings for the Asia Pacific, China is far and away the most exciting regional market. The main attractions include double-digit growth, an improving operating climate and increase in chronic diseases, such as diabetes. Drawbacks include low per capita consumption and a vast rural population that cannot afford even the most basic medications. We currently calculate the value of the pharmaceutical market – patented products, generic medicines and over-the-counter (OTC) preparations – to be just over US$31bn.

During Q307, BMI's impression of China's regulatory environment improved after the State Food and Drug Administration (SFDA) announced plans to eradicate sub-standard medical devices and to pull unsafe drugs from the marketplace more swiftly. In addition, the threshold to qualify for a Good Manufacturing Practice (GMP) certification was subsequently raised.

In a populist move that will reduce drug prices, the Chinese central government intends to phase in the separation of pharmacies from hospitals and end the generous 15% mark-up on drugs available in healthcare facilities. This will reduce the conflict of interest whereby prescribers and dispensers work for the same institution and promote competition between drugstores. BMI welcomes these developments as lower pharmaceutical costs will benefit patients, particularly rural ones.

Chronic obstructive pulmonary disorder (COPD) is the top killer in rural areas. More than 1mn succumb to the condition each year, with as many as 70% of sufferers unaware that they had it. The leading causes of COPD in China are smoking and the use of biofuels. Meanwhile, an increasing taste for Western-style junk food and sedentary lifestyles have caused the rate of breast cancer among urban Chinese women to jump sharply over the past decade. In Shanghai, 55 out of every 100,000 women have the disease, a 31% spike since 1997.

The traditional Chinese medicine (TCM) sector received a boost in November 2007 when a pilot programme to lift the ban on TCM doctors treating patients in pharmacies was announced. TCM practicing in drugstores was banned in 2001 after some pharmacies illegally over-sold drugs and medical apparatus under the guise of free treatment provided by TCM doctors.

BMI's Country Pharmaceuticals and Healthcare Reports - Sample Contents Page

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Chapter 1 - Executive Summary

China Pharmaceuticals & Healthcare Industry SWOT

China Political SWOT

China Economic SWOT

China Business Environment SWOT

Chapter 2 - China: Business Environment Ranking

Table: Asia Business Environment Rankings

Business Environment Ranking

Economics - Long-Term Risk

Politics - Long-Term Risk

Regulatory Barriers

Domestic Sector Threat

Market Growth Potential

Market Size Ranking

Chapter 3 - China: Market Summary

Chapter 4 - Regulatory Regime

Intellectual Property Issues

IP Disputes

Counterfeit Activities

Pricing & Reimbursement

Pricing & Reimbursement Developments

Price Cuts

Other Regulatory Developments

Chapter 5 - Industry Trends & Developments

Healthcare Sector

Health Status

Domestic Pharmaceutical Sector

Recent Developments In The Local Pharmaceutical Sector

Foreign Company Activity

Acquisitions

Establishment And Expansion Of Local Operations

Medical Devices

Traditional Chinese Medicines

R&D Activity

Table: Major Multinationals With R&D Facilities

Clinical Trials Activity

Biotechnology Sector

Recent Biotechnology Sector Developments

Active Pharmaceutical Ingredients

Chapter 6 - Industry Forecast Scenario

Overall Market Forecast

Table: China - Drug Market Forecasts

Key Growth Factors - Industry

Table: China - Health Expenditure Forecasts

Key Growth Factors - Macroeconomic

Table: China: Macroeconomic Data And Forecasts

Prescription Market Forecast

Table: China - Prescription Drug Market Forecast

OTC Market Forecast

Table: China - OTC Market Forecast Indicators

Generics And Branded Market Forecasts

Table: China Generics And Branded Market Forecasts

Export/Import Forecasts

Table: China - Drug Export/Import Forecasts

Other Healthcare Data Forecasts

Table: China - Hospital Data Forecasts

Key Risks To BMI's Forecast Scenario

Chapter 7 - Competitive Landscape

Table: Competitive Landscape In China

Table: China: Disclosed FDI By US/European Pharmaceutical Firms, 2006

Chapter 8 - Company Profiles

Leading Multinational Companies

GlaxoSmithKline

Pfizer

AstraZeneca

Merck KGaA

Sanofi-Aventis

Novartis

Roche

Merck & Co

Bayer

Financial Performance

Indigenous Manufacturers

North China Pharmaceutical Corporation (NCPC)

China Biopharmaceuticals Holdings (CBH)

Hubei Biocause Heilen Pharmaceutical Co

Aida Pharmaceutical Holdings

Chapter 9 - BMI Forecast Modelling

How We Generate Our Industry Forecasts

Technical Process

Pharmaceutical Industry

Sources

Chapter 10 - Appendix: Regional Demographic Data

Table- Manufacturing Wages (ave per annum), US$

Table - Population

Household Spending Per Capita, US$

Private Consumption Per Capita, US$ PPP

Market Size, GDP, US$bn

Chapter 11 - Country Snapshot: China Demographic Data

Section 1: Population

Table: Demographic Indicators (2005)

Table: Rural/Urban Breakdown

Section 2: Education & Healthcare

Table: Education

Table: Healthcare: Vital Statistics

Table: Healthcare Expenditure

Section 3: Labour Market And Spending Power

Table: Employment Indicators

Table: Consumption and Stratification

Table: Wages Per Year

Competitive Landscape for Asia Pharmaceuticals and Healthcare: Sample of Companies Ranked

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Cross-border analysis of regulatory systems comparing the patenting environment, summarising regional pricing and reimbursement factors and monitoring the growth of the Pharmaceuticals sector across the region. Company SWOTs cover leading multinational and national drug companies operating in each market.

Network of Asian Pharmaceuticals & Healthcare Sources

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BMI's Asian Pharmaceuticals Healthcare Reports are based on an extensive network of multilateral organisations, government departments, pharmaceuticals & healthcare industry associations, chambers of commerce and company reports. Information sources include: