Struggles ahead in China for pharma companies
02-Sep-15, Phys Org
China's economic downturn plus other factors, including overcapacity and tightening regulations, mean the next two to three years could be challenging for the foreign chemical and pharmaceutical companies located there.
To survive in China as it adjusts to a slower pace of growth, businesses will likewise need to adapt, reports Chemical & Engineering News (C&EN), the weekly newsmagazine of the American Chemical Society.
%20Want%20China%20Times.jpg "Struggles ahead in China for pharma companies (c) Want China Times")
Image: Want China Times
Jean-François Tremblay, a senior correspondent at C&EN, notes that owing to reforms initiated in 1978, China has been a profitable place for chemical and drug companies to grow. But a corruption scandal, major layoffs and slower sales within the past year have derailed the upward trajectory. And the recent stock market turbulence has forced them to re-evaluate their positions.
Some experts advise foreign companies to specialize their products to keep ahead of local competition.