A Platy Overview Of Large Scale Globalization Of China’s Pharma Industry

Being the highest populated country across the globe, the demand for health care and pharma services in China has always been quite high. However in the recent years, this demand has grown even further, thanks mainly to the fact that the aged middle class country within the country is now the highest in the world. In fact the pharmaceutical market in China has grown to emerge as the second largest in the world. This growth has resulted due to the innovations in this industry, a significant rise in its global profile and ongoing as well as proposed structural change. This has naturally created a huge demand for life sciences professionals, which, the top headhunting firms in China, are trying their best to fulfil.

Changes That Have Ensured Growth Of The Industry

As mentioned before, the pharma industry in China has been expanding and has also experienced an improvement in its global profile in the recent times. This change has been made possible mainly due to the Chinese government’s decision to s promote consolidation of the industry. In order to ensure the same, the government has not only raised the quality standard for drugs but has also taken the necessary steps towards improving the regulatory infrastructure within this sector. These steps are aimed at enhancing the efficiency and speed of drug development. This has led to a considerable increase in the overall investment in the life sciences sector through both local and foreign investors.

Another major change that has ensured the growth of the pharma industry in China is the huge influx of life science talent into the country from abroad. In fact, the life science executive search firms in China have been recruiting western professionals with extensive experience in various multinational pharma firms in large numbers. In addition, they have also been able to attract Chinese executives, who had left the country to gain education in west and now are looking for great career opportunities in their home country. This is in addition to the local talent available in the country, who are now getting better and wider range of opportunities for a successful career in the pharma sector.

Challenges Still To Be Overcome

Despite the growing support and financial backing from the government and private investors, the phrama sector in China still needs to overcome several other hindrances to ensure optimal growth. One of the biggest challenges is the slow pace at which the industry is consolidating, which has restricted the number of truly innovative firms to only a handful. In addition, the fear of loss of business amongst the small drug manufacturers and distributers is something that the government has to take into consideration. However, despite these challenges, the sheer size of the local market is likely to prove a major advantage for the growth of the industry. In fact, most experts within the industry believe that this single factor can help the industry to overcome all barriers and give it a big competitive advantage within the global marketplace. But for now the consistent pharma growth is something that is being celebrated by and all in China.

Understanding The Structure Of China Pharma Industry

Despite having been responsible for serving one of the largest populations in India, the pharma industry in China was not very well organized until only a few years back. In fact, even today a major section of the industry is highly fragmented and comprises of countless small manufacturers and distributors. The primary objective of these manufacturers and distributers is to cheap, generic medications which provide them a huge profit margin. They lack the inclination to invest funds in innovation and R&D, with less than 5% of the sales being directed to R&D, which is mostly carried out in the field of generics.