China's life sciences has gone through a successful development process in the past decade, and the industry has expanded faster than the overall economy. Between 2006 and 2011, China's entire pharmaceutical market grew by between 15% and 30% annually. However, in 2012 and 2013, the growth rate slowed down to less than 20%. In the past two years, the situation has become more severe, and income growth has fallen into single digits in 2015, and the downward trend seems to continue. Part of the reason for the current decline in growth is that the Chinese economy is currently undergoing transformation, but regulatory changes have also played a role, especially in the mid-2015 reform of the drug bidding process. Despite this, most corporate executives who accepted KPMG China’s interviews are still optimistic about the long-term development prospects of this industry in China. Although these respondents saw many obstacles, such as China’s lengthy approval process for drug marketing, ongoing price reforms, and more stringent local regulatory requirements, they also realized that companies still There are a wealth of business opportunities. The Chinese government is working to increase health care spending to meet the needs of an increasingly aging population and a growing affluent population. The Chinese government has also shown its willingness to open up the health care industry and market it. This will benefit multinational companies as they are at the forefront of innovation and R&D in the industry. We hope that this report will be useful for your opening. If you have any suggestions or inquiries, please feel free to contact any of us or your current KPMG China contact. table of Contents First, the main findings Second, China's emerging medical market Third, the impact of China's drug policy reform Fourth, the growth opportunities of multinational companies V. Future prospects of the industry in China Conclusion First, the main findings “Last year, US President Barack Obama announced that the US government will invest $215 million in precision medicine in the 2016 budget. In response, China recently announced that it will include a $9 billion budget for the next five-year plan. Precision medicine will be invested in the next 20 years." - Danny Yeung, CEO of Prenetics Medical issues have always been a priority for the Chinese government. This issue is prominent in the 12th Five-Year Plan for 2011-2015; and during the 13th Five-Year Plan for 2016-2020, how to provide effective care remains a key issue. Specific initiatives within the plan include integrating insurance mechanisms in urban and rural public hospitals and using networked healthcare and other digital optimization methods to manage resources. Although the long-term potential of the Chinese life sciences market is enticing, its short-term prospects are not clear. Businesses operating in China are expected to grow at a rapid rate to offset the limited growth of companies in other parts of the world, and headquarters should communicate with local management to change expectations and strategies accordingly. The reforms launched in 2015 have caused great problems in both supply and delivery. The most important reason is that the new tendering process is the main reason for the decline in sales growth of some multinational pharmaceutical companies. While regulatory changes are not the only reason for this decline, policy reforms are forcing many companies to reconsider existing strategies and practices. Local pharmaceutical companies continue to grow. Their share of the pharmaceutical market has increased by 2.3% over the past seven years. 3 Because most domestic companies operate unbranded generic drugs and compete with other domestic counterparts for price competition, their lucrative profits have prevented their further development. Lower margins of profit also make it difficult to allocate or raise funds for the development of new products. The gap in size and quality between multinational companies and local companies has led to some major acquisitions, but for local companies, opportunities still exist. This is critical for companies that specialize in market segments or have a long-term vision of start-ups with overseas R&D or business backgrounds. Although some changes in recent policies have begun to clear the backlog of applications, the time required to obtain new drug approvals from the State Food and Drug Administration (CFDA) remains a problem. Over time, the speed and transparency of the approval process should improve, which will also drive the quality and effectiveness of the drug. Advances in data analysis and other digital technologies can help companies better manage their operations and enable new companies to break the status quo. This also encourages regulators to keep up with the times. Maintaining high standards of compliance is always the focus of all industry companies. From transparency in supply and distribution chains to relationships with hospitals and healthcare professionals, pharmaceutical companies have focused on improving internal processes and engagement with third parties. Utility Knife,Abs Utility Knife,Aluminium Utility Knife,Plastic Grip Utility Knife Shangqiu City Huashang Zhiyuan Tools Co., Ltd. , https://www.hszytools.com.jpg)
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