For multinational corporations in the pharmaceutical industry, the large China market has been an indispensable part of their global plans for decades – and this factor is becoming even more important now than ever before, mainly due to the country’s pursuit of high-quality development, experts and business leaders said. That pursuit has showcased five factors working in China’s favor: the ever-growing market size, strong industrial and supply chain resilience, well-thought-out policy support, deepening healthcare industry reform and high-standard opening-up. These five factors figured constantly in discussions among top executives of pharmaceutical and medical device companies at the 6th China International Import Expo (CIIE) in Shanghai in early November. Many such companies chose the CIIE to launch or showcase their newest medicines, products and first-in-class therapies. Others sought to increase their visibility at the event, with some confirming their participation in future editions of the CIIE. Clearly, China is an all-important market for these MNCs.
For instance, U.S.-based biopharmaceutical company Gilead Sciences increased its exhibition area at the expo by five-fold this year, just one year after its CIIE debut in 2022. Gilead said it wanted to fully demonstrate innovative products in virology, oncology and other disease areas, as well as the innovative technologies behind many of its star products. U.S.-based life sciences company Cytiva either debuted or showcased a series of products and solutions, including one to manufacture lipid nanoparticle medicines. Switzerland-based Alcon, a global eyecare product and service provider, unveiled new surgical, vision care and dry eye syndrome intervention innovations at the CIIE, which included “wavelight plus”, a next-generation refractive surgery system launched first in China with additional markets to follow. “China represents a significant need when it comes to eye health, and a very important market for Alcon,” said Rick Kozloski, President of Alcon China. “Since entering the Chinese market in 1995, we have steadily increased our investment to make innovative eyecare products, treatments and services more accessible to Chinese people.”
Flora Zhu, Director of China corporate research at Fitch Ratings, said: “China is the world’s second-largest pharmaceutical market and the demand for high-quality drugs, where the global pharmaceutical companies have a competitive edge, is strong and will continue to grow, driven by China’s aging population, increasing disposable incomes, growing health awareness and rising medical insurance coverage. “We believe global biopharma companies are likely to benefit from more government support as China is spurring foreign investment in biopharmaceuticals.” Zhou Mi, Senior Researcher at the Chinese Academy of International Trade and Economic Cooperation, said China is becoming increasingly attractive to global pharmaceutical investors because they are confident of achieving stable and long-term growth in this market. “China has a huge market that is expanding fast, which provides a firm ground for global pharmaceutical companies to increase their profitability.
Multinational pharmaceutical companies also benefit from the Hainan Boao Lecheng International Medical Tourism Pilot Zone in Qionghai, Hainan province, the first and only special medical zone in the country with an independent regulatory system to optimize the approval, Customs clearance, use and supervision of imported medical devices and drugs. And there are other advantages besides China's massive market. Zhou with the CAITEC said China’s digital field, especially its e-commerce, has boosted pharmaceutical supply chain efficiency in China. Also, the country’s huge population offers numerous advantages for developing rare disease drugs. The low cost and convenient supplies of active pharmaceutical ingredients also enhance China’s attractiveness for pharmaceutical investors, he said. Edward Zhou, President of Cytiva China said China is becoming a global powerhouse for pharmaceutical manufacturing at an accelerated pace. So, accelerating localization in China has become an important pillar of Cytiva’s global growth strategy.
According to the latest edition of the Global Biopharma Resilience Index published by Cytiva earlier this year, China is a fine example of how robust government policy, coupled with a strong scientific culture, can power the growth of the bio-pharma sector. The report findings were based on a survey of 1,250 biopharma and pharma executives in 22 countries. They rated countries’ capabilities in five key areas: supply chain resilience, talent pool, research and development ecosystem, manufacturing agility, and government policy and regulation. Among all the developing countries, China scored highest, with outstanding supply chain resilience and excellence in manufacturing. “In the global biopharmaceutical supply chains, ingredients for many drugs are produced in China. If any production problems arise in China, supply chains in many areas could be disrupted. China’s position in the global supply chain is becoming increasingly important,” Zhou of Cytiva said, as reported by the China Daily.
