Chinese pharma growth slowed again in 2014 but still impressive
25-Jan-15, Virtual-Strategy Magazine
In general the Chinese pharmaceutical sector saw slower but still double-digit growth in 2014 despite a host of challenges stemmed from slowing Chinese economy, regulatory shakeups, cost containment measures and price cuts, as well as healthcare reform turbulence. The Chinese drug market (at retail price level) is estimated to have grown 13.4% in 2014 to reach CNY 1,245.7 billion, according to China Pharmaceutical Guide 2014 (9th Edition) quoting SMEI data.
The slowing Chinese pharma growth has, to a large extent, been driven by: 1) falling government healthcare investment growth as a result of staggering economy; 2) cost containment and activities against healthcare corruption; and 3) intensive and often irregular competition.
Following nearly a decade of healthcare reform, life of the old Chinese pharma business model, which has been overly sales driven and heavily dependent on face-to-face promotions to physicians, is finally coming close to an end.
