Biopharmaceutical Opportunities

An Expert's View about Medical, Health and Cosmetics Products in China

Posted on: 27 Nov 2011

The biopharmaceutical industry in China has experienced impressive growth in recent years. Driven top down by state prioritization as a key high growth sector, it has benefited from a significant amount of government investment and policy support.

Sector briefing Biopharmaceutical Opportunities in China Why China? The biopharmaceutical industry in China has experienced impressive growth in recent years. Driven top down by state prioritization as a key high growth sector, it has benefited from a significant amount of government investment and policy support. Investment to date has resulted in a major network of showcase science parks; top universities; Clinical Research Organisations (CROs) partnering with multinationals; and the best of its manufacturing facilities operating to international standards. The biopharmaceutical market is expected to maintain double digit growth of approximately 20-25% and to be th worth over $ 35 billion by 2015. The 12 Five ?The biopharmaceutical Year Plan also sets forth a government strategy to invest RMB 40 billion in the market is expected to biopharmaceutical sector. This rapid growth maintain double digit growth will contribute to China becoming the world?s of approximately 20-25% second largest pharmaceutical market by 2015. and to be worth over $ 35 You can find general information on the billion by 2015.? Chinese market conditions on UKTI?s website. The Doing Business Guide for China gives an overview of China?s economy, business culture, potential opportunities and an introduction to other relevant issues. UK Trade & Investment Sector briefing: Bio pharmaceutical opportunities in China Opportunities The steady rise in household income, a progressive broadening of public and private Due to China?s continued growth as a market healthcare insurance coverage, an ageing for biopharmaceuticals and as a source of R&D population and the convergence in disease talent globally, the sector has transformed in profile of the west have resulted in a rapid the past 6 years to being a major opportunity increase in demand for a wider range of quality for the UK biopharmaceuticals value chain, in healthcare and medication. particular with the significant increase in multinationals R&D investments in China. However, China?s 1.3 billion population currently only accounts for 7% of the global There are over 500 biotechnology companies in biopharmaceutical market of which 95% is in China. The current value of biologic drugs is $8 generics. These figures are changing and will billion, accounting for approximately 20% of provide immense sales revenue potential to China?s total drug market. This figure is companies that tap into the rapidly increasing changing as China moves away from a reliance purchasing power in the Chinese market. on the manufacturing of (off patent) generics. The convergence in disease profile of China Research and Development (R&D) and the west provides opportunity for the sale of popular western medicines. However a Foreign significant opportunity is in the development of drugs designed specifically for the Multinationals originally entered the market in Chinese/Asian market. sales & marketing as China first opened up, but in the last few years have shifted, first to Clinical Trials clinical, and then (around 2007) to pre-clinical R&D. The main reasons for this include: The rapid development of the CRO industry in i) the global size and projected growth of the China has been possible because of the domestic pharmaceutical market; reduction in cost in clinical trials of up to 20%. ii) quicker market entry for new drugs to A large and diverse patient population, modern maximise return on patents through increased clinical trial facilities and lower costs make early stage research; China a suitable place to develop drugs. iii) availability of top talent; and iv) the possibility of tailoring drugs to local There is potential for UK CROs to partner with needs. Chinese counterparts but also to sell their services to Chinese Biopharmaceutical As global multinational R&D restructures, cities companies seeking to utilise UK CRO expertise, such as Shanghai are becoming a major centre especially those developing innovative drugs for R&D, equivalent to those in the UK and US. and with a strategy to export. The spill over of staff from multinational R&D centres may speed the creation of a domestic Further Opportunities biotechnology market based on western biotechnology principles centred on Shanghai. ? Partnering with China supplying ?Research skills? to complement China?s Domestic ?Development abilities? through clinical trials to commercialisation, with Chinese At present Chinese R&D is in its early stages, government support with many Chinese companies reinvesting minimal revenue mainly into improved ? Supplying expert advice and innovation production process and generics R&D. consultancy to government, However, state policy and company strategy to universities/institutes/hospitals become more innovative will soon signal significant changes in domestic R&D capacity. ? Supplying equipment to multinational and domestic R&D centres Chinese companies are keen to work with experienced foreign biopharmaceutical companies throughout the value chain. Customer Base: UK Trade & Investment Sector briefing: Bio pharmaceutical opportunities in China ? Advanced biotech and applications from UKTI contacts US, Japan and European players are in great demand. Key domestic players are Oliver Hayakawa willing to form partnership agreements Senior Trade & Investment Officer with new entrants, especially those with British Consulate-General Shanghai strong capability to innovate. Tel: (0086 21) 3279 2000 Email: oliver.hayawkawa@fco.gov.uk Events www.ukti.gov.uk Jing Li BIO China International Conference Trade & Investment Officer Shanghai British Consulate-General Shanghai www.bio.org/biochina Tel: (0086 21) 3279 2000 Time: 12-13 October 2011 Email: jing.li@fco.gov.uk www.ukti.gov.uk ChinaBio www.ebdgroup.com Time: May 2012 Carol Wang Trade & Investment Officer China Bioindustry Convention British Embassy Beijing www.bioindustry.cn Tel: (0086 10) 5192 4473 Time: June 2012 Email: carol.wang@fco.gov.uk www.ukti.gov.uk CPhI www.cphi-china.com Time: June 2012 Find full details of all events in this country and sector on the UKTI website. New export events are added daily to the site and you can register to be alerted to them on a daily, weekly or monthly basis UKTI?s Tradeshow Access Programme (TAP) provides grant support for eligible Small & Medium Sized Enterprises (SME's) to attend trade shows overseas. Find out more about UKTI support for attendance at overseas events UK Trade & Investment Sector briefing: Bio pharmaceutical opportunities in China Next steps - How UKTI can help ? Arranging appointments British companies wishing to develop their ? Organise seminars or other events for business in the Chinese market are advised to you to meet contacts and promote your undertake as much market research and company in the Chinese market planning as possible in the UK. UKTI?s team in China, with its wide local knowledge and This work is available via our Overseas Market experience, can provide a range of services to Introduction Service (OMIS) a chargeable British-based companies wishing to grow their service which assists British-based companies business in global markets. wishing to enter or expand their business in overseas markets. This can include: ? Provision of market information To find out more about commissioning this ? Validated lists of agents/distributors work, or accessing other UKTI services and ? Key market players or potential specialist advice, please visit the UKTI website customers in the Chinese market to find contact details for your local UKTI ? Establishment of interest of such office. contacts in working with you Whereas every effort has been made to ensure that the information given in this document is accurate, neither UK Trade & Investment nor its parent Departments (the Department for Business, Innovation & Skills, and the Foreign & Commonwealth Office), accept liability for any errors, omissions or misleading statements, and no warranty is given or responsibility accepted as to the standing of any individual, firm, company or other organisation mentioned. Published 2011 by UK Trade & Investment. Crown Copyright © You may reuse this information (not including logos, images and case studies) free of charge in any format or medium, under the terms of the Open Government Licence. To view this licence, visit www.nationalarchives.gov.uk/doc/open-government- licence/ or write to the Information Policy Team, The National Archives, Kew, London TW9 4DU, or email: psi@nationalarchives.gsi.gov.uk This publication is also available from our website at www.ukti.gov.uk or for more information please telephone +44 (0)20 7215 8000. UK Trade & Investment Sector briefing: Bio pharmaceutical opportunities in China
Posted: 27 November 2011

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