Strategies for success in China outlined in new Quintiles-sponsored report by Economist Intelligence Unit
A new Economist Intelligence Unit report sponsored by Quintiles concludes that ‘China is a complex market that can yield profits to those companies that jump in with both feet, adapt to the realities of doing business in China, and actively protect their interests in this dynamic business environment.’
The report, titled Emerging China is the third of four in the Quintiles-sponsored series, Reinventing biopharma: Strategies for an evolving marketplace. Findings are based on surveys of life sciences executives. In the latest report, more than half (56 per cent) said that maximising opportunities in China was one of their company’s top priorities.
The report’s key findings include te fact that China is projected to be the world’s second largest biopharma market as early as 2016, behind only the US.
The report also surmised that a local presence in China has translated into success for biopharma companies as 61 per cent of respondents with operations in China had sales that met or exceeded moderate-to-high expectations in the last three years, compared to just 36 per cent for those with no such operations.
On the challenges front, the report found that low income levels among Chinese households (60 per cent of China’s 403 million households had an annual income over $5,000 in 2011) and patchy market data can create unique challenges for biopharma who are more used to operating in developed markets.
Since the report revealed that companies often find that obtaining approval for new medications can take five years longer in China than in other markets, and innovative strategies are required, proactively adapting to the regulatory environment can save time and money.
“The projected growth rate in China of 19 per cent year-on-year between 2009 and 2016 is due mostly to rising incomes and an ageing population, providing an opportunity that the industry cannot afford to miss,” said Paul Kielstra, Author, EIU.
“The new report’s findings echo our own experience in China – it’s essential to ‘understand local, think local and be local’. We are increasing our own investment and infrastructure in China to help our biopharma customers efficiently enter or expand in this dynamic market of 1.3 billion people” said Ling Zhen, Vice President and General Manager for Greater China Region, Quintiles.
Recent Quintiles initiatives in China have included: agreements to expand lab testing capabilities and establish a regional headquarters for China in Shanghai; establishment of a Center of Excellence in Dalian northeast China, launch of Kun Tuo, a local clinical research organisation for China; expansion of consulting services offered; and the launch of a new Strategic Drug Development organisation.
EP News Bureau
