Chinese Pharma Rebounded to Double-Digit Growth in H1/2016 Despite Challenges
Core business revenues of the Chinese pharmaceutical industry grew 10.14% to CNY 1,363,565 million in the first half of 2016, according to the newly published China Pharmaceutical Guide 2016 (11th Edition) and WiCON | Pharma China (www.pharmachinaonline.com) quoting the official statistics.
WiCON | Pharma China (www.pharmachinaonline.com), the most-trusted English media and source of business intelligence covering the Chinese pharmaceutical space, reported recently that 217 A-share listed Chinese pharmaceutical related companies also saw their revenues and net profit grow by 16% and 22.6% respectively to CNY 447.4 billion and CNY 41 billion in the period, as China performance of pharma MNCs improved generally also. 22 MNCs had combined China revenues of CNY 64,768 million in the first half, up 9.74% on average. 15 MNCs saw double-digit growth in the period, with Takeda being the biggest winner with a dramatic growth of 123.36%.
On the other hand, IMS reported that the Chinese hospital drug sales were up 9.3% in the first quarter of 2016 to CNY 169.0 billion. MNCs (+10.2%) led Domestic companies (+9.1%) in terms of growth rate for in the period. By comparison, official research center CPIIC suggested a even higher 10.53% growth for Chinese hospital drug sales in the same period.
Despite positive data in the first half, pharma industry research firm Sinohealth predicted the growth of Chinese drug market to be around 7.3% to CNY 1,377.5 billion in 2016, down from 7.6% in 2015 and 13.3% in 2014.
Hot off the press, the China Pharmaceutical Guide 2016, an indispensable reference for MNC pharma executives with China responsibilities for more than a decade, provides various data sets on the Chinese pharmaceutical market and drug consumption patterns from respected sources including IMS, SMEI, CPA, Sinohealth, Nicholas Hall and official sources. The publication, from the publisher of well known WiCON | Pharma China and covers all aspects of Chinese pharma/healthcare sector, aims to help HQ and local executives at proactive MNCs feel the dynamic and up-to-date pulse of Chinese healthcare in order to stay in the driver seat of their business in the country.
There is no doubt the country’s ongoing healthcare reform will go on with unchanged ambitions. In reality, with tax and other revenues drying up and under increasing threat of BMI system deficit amid a slowing Chinese economy, local governments are pressured by both the central government and the public to do more with less. Despite its superficial goals, the healthcare reform has so far mostly been hijacked by containment of drug costs and no longer about improving efficiency and fixing structural flaws. Most recently, President XI Jinping took China healthcare under his direct leadership and reset the reform path with new pledges of comprehensive resources and coordinated government support, therefore reenergizing hope to vast future prospects of this sector.
The Chinese economy and its healthcare system are at crossroads and in transition again. This requires both domestic and MNC pharma companies to recalibrate their strategies and business models. A number of new opportunities areas, such as biosimilars and e-commerce as well as positive market conditions from government moves to uphold drug quality and encourage innovation, are beginning to emerge.
Nevertheless, Chinese experts warned recently that the pharmaceutical industry is facing a more complex Chinese marketplace in the near future. There will be lots of uncertainties, unbalances and frailty ahead. The outlook is mixed, while most analysts agree that the market will keep on growing, but most likely at a slower rate, continuing the trend which started two years ago.
Other than growing challenges on the ground in China, there are success stories from all categories of players, whether they are foreign or local, large or small, newcomer or established, private or state-owned. However, to be one of the success stories require a thorough understanding of the sector, ability to face and tackle challenges, flexibility to deal with changes, and skills to maneuver through complex situations.
Now in its 11th edition, China Pharmaceutical Guide 2016 continues to play an instrumental role in helping executives understand, navigate, manage and lead their pharmaceutical businesses in China.
The China Pharmaceutical Guide 2016 (11th Edition) has been completely reorganized into four volumes: 1) Volume I – Overview of the Chinese Pharmaceutical & Healthcare Sectors; 2) Volume II – Chinese Pharmaceutical IP and Regulatory Guide; 3) Volume III – Annual Review, Trends, Opportunities and Strategic Considerations; and 4) Volume IV – Sales & Marketing, Entry Strategies and Case Studies.
The China Pharmaceutical Guide 2016 (11th Edition), which was published in early August 2016, had been thoroughly updated with ample latest data from many reputable sources, abundant analysis by leading industry experts, new regulations and more case studies.
For further information, please contact WiCON International Group to request a free promotional PDF containing the executive summary, the table of contents, the lists of tables and charts, and preface. To download our promotional PDF and a brochure/order form, please visit:
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