Navigation Links
China is an Attractive Option for Pharmaceutical Outsourcing due to Low Development Costs
Date:8/7/2013

DUBLIN, Ireland, August 7, 2013 /PRNewswire/ --

Research and Markets ( http://www.researchandmarkets.com/research/xfgz8k/china) has announced the addition of the "China Pharmaceutical Market Outlook - Government Incentives, Healthcare Reform and a Rapidly Ageing Population Provide Strong Stimulus for Growth" report to their offering.

     (Logo: http://photos.prnewswire.com/prnh/20130307/600769)

China Becoming Pharma Production Hub

China remains an attractive target for pharmaceutical research and manufacturing, and major players from around the world are flocking to benefit from cut-price production.

The new report* states that China is an attractive option for pharmaceutical outsourcing, as drug development costs approximately 20% less than in the West, and takes less development time. Several multinational players are outsourcing to China and cutting jobs in Western regions, in order to offset financial losses from the impending patent cliff.

The Chinese boasted the third largest pharmaceutical market in the world in 2011, with an estimated value of approximately US$64 billion, and the country also represents the world's largest exporter of goods. The Chinese pharmaceutical market is currently highly fragmented, but consolidation is increasingly being sought among domestic players.

The majority of deals made in the Chinese pharmaceutical industry are mergers and acquisitions, which allow companies to integrate resources and reduce competition, while phasing out independent companies which are unable to keep up.

Many multinational companies are simply placing orders with contract research organizations and contract manufacturing organizations, but some are working closely with top domestic players. A high number of deals have taken place within the biotechnology industry, the majority with foreign companies - for instance, GSK's co-marketing agreement with Sinopharm for the distribution of its vaccines in China, or ImmunoBiology's agreement with Sinopharm to co-develop a tuberculosis vaccine.

Several multi-nationals are also completing mergers and acquisitions with domestic companies to help integrate themselves into the market. For instance, GSK has purchased Nanjin Melrul Pharmaceutical Company, and Sanofi has purchased Minsheng Pharma in order to improve its presence in the OTC market.

However, poor drug quality and flawed intellectual property laws make companies hesitant to invest in Chinese pharmaceutical firms. Although China has tightened its regulations in recent years, stories of poor drug quality continue to slip through the cracks, and intellectual property rights are also threatened.

The Chinese government implemented a new licensing law in July 2012 allowing them to issue compulsory licenses to domestic pharmaceutical companies for the manufacture of cheap generic copies of patented drugs, in the case of emergency or public interest. This could dissuade international pharmaceutical companies from investing in drug development, potentially setting back innovative drug research.

China also faces competition from popular outsourcing neighbor, India. India's labor costs tend to be lower, making the country an appealing prospect to investors, and posing a threat to China's pharmaceutical market success.

Companies Mentioned

- Harbin Pharmaceutical
- Jointown Pharmaceutical
- Nanjing Pharmaceutical
- Shanghai Pharmaceutical
- Sinopharm


For more information visit http://www.researchandmarkets.com/research/xfgz8k/china

About Research and Markets

Research and Markets is the world's leading source for international market research reports and market data. We provide you with the latest data on international and regional markets, key industries, the top companies, new products and the latest trends.

Research and Markets
Laura Wood, Senior Manager.
press@researchandmarkets.com
U.S. Fax: 646-607-1907
Fax (outside U.S.): +353-1-481-1716
Sector: Pharmaceuticals



'/>"/>
SOURCE Research and Markets
Copyright©2012 PR Newswire.
All rights reserved

Related medicine technology :

1. China Biologic Reports Financial Results for the Second Quarter and First Half of 2013
2. BD and the College of American Pathologists Announce Strategic Alliance to Support Laboratory Quality and Performance in India and China
3. China Biologic Products to Report Second Quarter 2013 Financial Results
4. MEDTEC China 2013: Floor space sold out!
5. China Heart Valve Market and Heart Lung Machine Industry Global Analysis in New Research Reports
6. Kinex Pharmaceuticals Will Take the Lead in the Orascovery Program Development in China
7. Life Technologies Signs Licensing Agreement with Suzhou Ribo Life Sciences for Development of siRNA Therapeutics in China
8. China Pharmaceutical Guidebook: Latest Chinese Regulations for Imported Drug Registration
9. Bristol-Myers Squibb and Simcere Enter Partnership to Co-Develop and Co-Commercialize Orencia(R) SC (abatacept) in China
10. Research Report on Chinas High-End Medical Treatment Industry, 2013-2017
11. China Biologic Waived Application of Preferred Shares Rights Agreement
Post Your Comments:
*Name:
*Comment:
*Email:
(Date:2/22/2017)... A research report by Arcview Market Research focused on cannabis ... changing landscape of the legal market reveals that regulated cannabis sales ... , a 30% increase from 2015. According to the research ... 2021 representing a 26 percent compound annual growth rate. The use ... Canada is gradually becoming more mainstream thanks ...
(Date:2/22/2017)... LONDON , Feb. 22, 2017  Based ... therapy market, Frost & Sullivan recognizes SnooZeal, Inc. ... SnooZeal is a highly innovative product that intelligently ... training the tongue muscles through the clinically proven ... over-the-counter (OTC) status, SnooZeal is one of the ...
(Date:2/22/2017)... Feb 22, 2017 Research and Markets ... Devices Market (Thermometers - Digital, Infrared, Mercury; Trend Indicator):Analysis By Region, ... ... Market is forecasted to grow at a CAGR of 5.33% during ... prevalence of infectious diseases along with surging demand of digital thermometer. ...
Breaking Medicine Technology:
(Date:2/22/2017)... ... February 22, 2017 , ... In a 2012 survey, over ... not filling a prescription because they could not afford to pay for it. ... were 30-60%*. At the same time, hospitals, pharmacies, manufacturers and nursing ...
(Date:2/22/2017)... Colorado (PRWEB) , ... February ... ... the availability of their newest advanced absorption cannabidiol (CBD) serum, “NANOCALM 300” ... delivery system®, which provides instant absorption from the mouth into the bloodstream. ...
(Date:2/22/2017)... WV (PRWEB) , ... February 22, 2017 , ... ... awarded a contract to Quality Insights to help small practices in Delaware, New ... Payment Program, established by the Medicare Access and CHIP Reauthorization Act of 2015 ...
(Date:2/22/2017)... (PRWEB) , ... February 22, 2017 , ... ... communications company, launched a new media platform connecting healthcare technology professionals and other ... be followed by a quarterly publication starting on March 1, announced Michael J. ...
(Date:2/22/2017)... ... February 22, 2017 , ... Pet obesity in the U.S. continued to steadily ... the Association for Pet Obesity Prevention (APOP). During the ninth annual survey, APOP also ... the benefits of corn and grains, value of raw and organic diets, and the ...
Breaking Medicine News(10 mins):