Pharma, healthcare cos to experience growth in China
The pharmaceutical and healthcare companies will be enjoying speedy growth in China, as the sector almost triples in value by the end of the decade, the report from McKinsey said.
The consultancy also estimated that China’s healthcare industry will generate $1 litre per year by 2020, compared with $357 billion in 2011 and $156 billion in 2006.
The consultancy also said, “From pharmaceuticals to medical products to consumer health, China remains among the world’s most attractive markets, and by far the fastest-growing of all the large emerging ones.”
Last year, the pharmaceuticals delivered $71 billion in sales last year, of which the ten top ten multinationals claimed $10 billion.
The traditional Chinese medicines were also worth $13 billion and the medical products yielded $20 billion. McKinsey also said, “It is not surprising that multinationals are flocking to take advantage of the opportunities, but long-term success is by no means assured.”
In the Asian nation, since 2006, some 13 of the 20 biggest pharmaceutical companies worldwide have also created R&D facilities.
The urbanization is also likely to exert a major influence on the future growth as 142 million people migrate from rural regions to cities from 2012 to 2020.
Also, the amount of consumers in the age group of 65 years, will also rise from 122 today to 223 million in 2030.
While assessing the future of the biomedical sector, McKinsey also predicted that indigenous companies will consolidate and climb the value chain, as the standards improve and the government aims to ensure the top 100 pharma companies take 50% of sales by 2015.
The multinationals will also pursue acquisitions and collaborations with domestic companies, as cost pressures and low official reimbursements for premium lines create issues.
