Healthcare and Life Science

Pharmaceuticals in China

The Chinese pharmaceutical market is the second largest in the world, however this is mainly a consequence of the large population. Per capita pharmaceutical spending in China remains low at 50USD in 2011 and the market is yet to mature.

CountrySpending Per Capita (USD)CAGR 2012-2015
US1033.42.5%
France631.20.5%
Germany550.61.5%
Spain481-2.5%
Italy471.71.5%
UK343.21.5%
South Korea245.14%
Brazil15213.5%
Global1374.5%
Russia110.611.5%
China49.616.5%
India11.515.5%

Sources: World Bank (population); IMS Institute (spending and growthforecast); Stenvall Skoeld analysis

Key drivers in the development of the market is increasing consumer purchasing power and regulatory changes.

China is in the beginning of a sweeping healthcare reform, with the government wanting to establish a universal health care system providing affordable healthcare to the entire population by 2020.

We work with global, specialty and generic pharmaceutical companies as well as financial investors to understand China’s pharmaceutical industry dynamics, and to capitalize on opportunities through organic and M&A strategies, including acquisitions, joint ventures and alliances.

We work along the value chain and examples of our support include:

Research & Development: Conducting due diligence on Chinese CRO (contract research organizations)

Portfolio Management: Identifying China licensing partners

Manufacturing: Search and screening of API producers (Active Pharmaceutical Ingredients) for a potential acquisition or joint venture

Branding: Evaluating the competitive advantages of new brand / product group, and determining whether it is positioned to win.

Marketing and Sales: Identifying and screening OTC companies with strong sales to channels to leading pharmacy chains

Distribution: Developing distribution and regional growth strategies

To find out more about our work within Pharmaceuticals please contact Per Stenvall (email)

Relevant case studies: