A Recap Of Large Scale Globalization Of China’s Pharma Industry

A Recap Of Large Scale Globalization Of
China’s Pharma Industry
Executive Search CHINA – ASIA || simon-wan@cornerstone-group.com

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.
ExecutiveSearchCHINA– ASIA
Tel : +86-21-6474-7064 | simon-wan@cornerstone-group.com

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.

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 mo1stly carried out in the field of generics.

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 pharma 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.

A Recap Of Large Scale Globalization Of China’s Pharma Industry

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A Recap Of Large Scale Globalization Of China’s Pharma Industry