China’s Pharmaceutical Market Growth
According to IQVIA, China remains the world’s second-largest pharmaceutical market, expected to reach $250 billion by 2025. With an aging population surpassing 350 million by 2030, demand for affordable and effective medicines continues to grow.
Government’s Stringent Implementation of New Policies
- Centralized Drug Procurement: The government has expanded its bulk-buy program, covering more cities and more drug categories. As a result, 60-70% of hospital drug orders are now controlled by centralized purchasing, pushing manufacturers to lower costs.
- Cancer Drug Pricing & Access: With over 4.5 million new cancer cases annually, China is making oncology treatments more affordable by fast-tracking foreign drug approvals and increasing domestic production incentives.
Support for Local Drug Manufacturers
- Tax Breaks for Generic Drug Producers: The Generic Consistency Evaluation (CGE) policy encourages local manufacturers to meet international quality standards. Companies achieving this will continue receiving 15% corporate tax rates, compared to 25% for others.
- Innovation & R&D Focus: The government is pressuring domestic firms to invest in research, reducing reliance on sales-driven models that previously dominated the market.
Opportunities for Foreign Pharmaceutical Companies
- Easier Market Access: Regulatory reforms now allow faster approvals for foreign-made drugs.
- Import of Essential Medicines: In 2024, China approved 50+ new imported drugs, with oncology treatments being a top priority.
- Price Competition: While foreign brands maintain premium pricing, demand for cost-effective alternatives is rising, opening doors for companies that can balance price and quality.
What This Means for Your Business
If you operate in healthcare, pharmaceuticals, or medical devices, understanding China’s evolving policies is critical for market success.
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