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China's pharmaceutical market is the third largest in Asia Pacific, ahead of India and behind Japan.
Combined sales of prescription products and over-the-counter (OTC) medicines reached US$36.99bn in 2008 – a 25.1% increase compared to the previous year. Drug spending accounts for 0.97% of GDP and annual per capita expenditure is US$27.50. Through to 2013, the report is forecasting a compound annual growth rate (CAGR) of 14.92% for the overall pharmaceutical market.
It appears that intellectual property (IP) is being embraced by local drugmakers. It was revealed in April 2009 that the number of submissions and approvals for patent application from domestic players in China's pharmaceutical industry were increasing at a faster rate than those from foreign parties, according to the State Intellectual Property Office (SIPO).
During 2009, Hebei province will pilot the separation of prescribing and dispensing of pharmaceuticals at hospitals. The report believes the main beneficiaries of the change are generic drug manufacturers, pharmacy chains and, most importantly, patients.
Despite lingering questions of quality, efficacy and safety, the significance of traditional medicines in China cannot be overstated. These interventions have a firmly entrenched position in society and generate huge revenues for manufacturers, prescribers and retailers. Such is the popularity of ancient herbs in the world's most populous country that sales of traditional Chinese medicines (TCMs) for the treatment of cardiovascular conditions exceed that recorded by Western pharmaceuticals in certain large cities.
The country has had limited success in Western or allopathic pharmaceuticals, but this situation is changing. In March 2009, Beijing Healthstar Pharmaceutical started commercialising Su Ling (haemocoagulase agkistrodon). The haemostatic is derived from snake venom and will be patented soon.
Su Ling was approved by the State Food and Drug Administration (SFDA) in September 2008 as a ‘Chinese self-developed Class I drug'.
The global financial crisis has benefited the active pharmaceutical ingredient (API) sector. In February 2009 it was revealed that the prices of some Chinese APIs jumped in the first half of the month due to a spike in overseas demand and insufficient supply from scaled-back production.
China Pharmaceuticals and Healthcare Report Q2 2009: http://www.companiesandmarkets.com/r.ashx?id=QLBG22I7W84551
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