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The pharmaceutical industry is one of the leading industries in the People's Republic of China, covering synthetic chemicals and drugs, prepared Chinese medicines, medical devices, apparatus and instruments, hygiene materials, packing materials, and pharmaceutical machinery. China has the second-largest pharmaceutical market in the world as of 2017 which is worth US$110 billion.[1] China accounts for 20% of the world's population but only a small fraction of the global drug market. China's changing health-care environment is designed to extend basic health insurance to a larger portion of the population and give individuals greater access to products and services. Following the period of change, the pharmaceutical industry is expected to continue its expansion.[2]
China, as of 2007, has around 3,000 to 6,000 domestic pharmaceutical manufacturers and around 14,000 domestic pharmaceutical distributors. The most often-cited adverse factors in the marketplace include a lack of protection of intellectual property rights, a lack of visibility for drug approval procedures, a lack of effective governmental oversight, poor corporate support for drug research, and differences in the treatment in China that are accorded to local and foreign firms.[3]
Research and development are increasing, with Shanghai becoming one of the most important global drug research centers. Most notably, Novartis is expected to establish a large Research and development base in Shanghai that will be a pillar of its drug development.[4]
China's thousands of domestic companies account for 70% of the market, the top 10 companies about 20%, according to Business China. In contrast, the top 10 companies in most developed countries control about half the market. Since 30 June 2004, the State Food and Drug Administration (SFDA) has been closing down manufacturers that do not meet the new GMP standards. Foreign players account for 10% to 20% of overall sales, depending on the types of medicines and ventures included in the count. However, sales at the top-tier Chinese companies are growing faster than at Western ones.
^"Top 10 Pharmaceutical Companies in China (2018)". 21 July 2017.
^于小明. "Fast growth in China's pharmaceutical market to benefit foreign firms: report – Chinadaily.com.cn". chinadaily.com.cn. Retrieved 14 January 2020.
^"China's Pharmaceutical Industry Lacks Innovation, Lags Behind", China Watch, Washington, D.C., United States: Worldwatch Institute, worldwatch.org, retrieved 3 January 2012
^Dyer, Geoff (5 November 2006), "Novartis to open Shanghai research arm", Financial Times, retrieved 3 January 2012 ← No-charge registration required to reach this content.
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