China Healthcare Industry Presentation Outline Market Background Regulatory
China Healthcare Industry Presentation Outline Market Background Regulatory Environment Industry Issues Intellectual Property Rights Growth Sectors Conclusions China Healthcare Consulting 1
China Healthcare Industry NOTICE from CHCC Only Selected Slides are Shown on our website Detailed Slides and Presentation can be available upon request China Healthcare Consulting 2
China Healthcare Industry China- the fastest growing market in the world China Healthcare Consulting 3
China Healthcare Industry China- Import vs Export China Healthcare Consulting 4
China Healthcare Industry Strong Hard Currency Reserve China Healthcare Consulting 5
China Healthcare Industry Increasing U. S. Direct Investment into China Healthcare Consulting 6
China Healthcare Industry China Pharmaceutical Industry Output & Growth Rate ---A Large and Growing Market China Healthcare Consulting 7
China Healthcare Industry China Pharmaceutical Commercial Sales & Growth Rate (Billion Yuan) China Healthcare Consulting 8
China Healthcare Industry Rank of Drug sales in 14 major area 2001 China 2001 2000 Company 1 1 Shanghai Roche 2 3 Shanghai BMS 3 2 Dalian Pfizer 4 7 Merck Sharp & Dohme 5 6 Glaxo 6 8 Beijing Double-Crane pharm. 7 10 Sino-Swed Pharm Corp 8 4 North China Group 9 5 Sandoz 10 12 Harbin Pharm. Group 11 16 Novartis 12 9 J&J 13 11 Astra-Zeneca 14 17 Bayer 15 34 Shandon Lu Nan Pharm. China Healthcare Consulting 9
China Healthcare Industry Problems in Healthcare System Lack of Stable Budget Resources Great Variability in Ability to Pay by Employers Casual Attitudes toward Medical Expenditure Incompatible with New Ownership Structure Deferred Payment Causes Resentment and Social Problems China Healthcare Consulting 10
China Healthcare Industry SDA Merger of 3 Former Governmental Departments Composition v Department of Drug Registration • Synthetic, Biological and TCM Divisions v Department of Medical Devices • Standards, Product Registration and Supervision Divisions v Department of Safety Supervision v Department of Market Compliance China Healthcare Consulting 11
China Healthcare Industry IPR Counterfeiting of Trademarks Lax Enforcement of Law and Protection of Local Industry WTO Accession Exempts China From Giving Immediate Patent Protection Administrative Protection (AP) is Rumoured to be Phased Out in Favour of 20 -Year Patent Pre-AP Local Generics Considered Legal Requirement of Large Generic Prints on Labels China Healthcare Consulting 12
China Healthcare Industry WTO Challenges (1) Regulatory Environment v More in Line With International Standards v More Transparent Administration v ICH Guideline Increasingly More Relevant v Administrative Barriers to Offset WTO Requirements China Healthcare Consulting 13
China Healthcare Industry Biological Products Types v Biochemical, Biological and Genetically Engineered Products Science and Technology Driven Average Growth Rate 12. 5% Worldwide Compared with 8% for Pharmaceuticals US$ 20 Billion in 2000 with 100+ Products China Healthcare Consulting 14
China Healthcare Industry OTC Market in China • • 700 OTC, 70 % will be registered as OTC Urbanization. Large migration from rural Sales by chain pharmacies in coastal cities increased by 45% in 2001. Foreign companies allowed to run OTC distribution China Healthcare Consulting 15
China Healthcare Industry TCM: Traditional Chinese Medicine TCM Source Materials Number Over 12, 000 TCM Industry Produces 5, 000+ TCM Preparations in Large-Scale Production TCM Sector Outperforms Average Medical Industry’s Performance Indicators Ride on the Back of Strong Worldwide Demand for Natural Medicines China Healthcare Consulting 16
China Healthcare Industry MORE Chinese Hospitals China’s healthcare system China Healthcare Consulting 17
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