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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.

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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
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