The Chinese market is attractive to foreign investors for many reasons. It is the world’s third largest market for pharmaceuticals with annual sale of US$71 billion. In fact, it is poised to become the second largest market in 2015 given that its annual growth rate of sales is between 15 and 20%, according to Yanzhong Huang, a senior fellow of global health at the Council on Foreign Relations.
Given these encouraging facts, Big Pharma companies such as Bayer Healthcare and Nova Nordisk consider the Chinese market as one of the top three markets in terms of total revenue contribution. Baxter International has also made the move to relocate its Asia Pacific headquarters to Shanghai.
But the country’s healthcare reforms may be a double-edged sword for foreign companies, writes Jan Wan in this Biopharm International article.