Ongoing medical reforms will benefit large Chinese pharma companies

 16-Apr-15, Moody's Investors Service 

Moody's Investors Service says that continued strong growth in China's pharmaceutical sector will mainly benefit those pharmaceutical companies that can meet heightened industry standards and market practices under the ongoing medical reform.

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"To rationalize China's healthcare system, control public healthcare costs and promote the upgrading of the country's pharmaceutical sector, the Chinese government launched a series of medical and healthcare reforms, which are credit positive for large pharmaceutical companies," says Ivan Chung, a Moody's senior vice-president.

For example, the expansion of the National Essential Drug List (EDL) in 2012 and the introduction of a drug tendering system at provincial level have helped divert fragmented medicine consumption to the institutional market and standardize medicine procurement by medical institutions.

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