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Pharmaceuticals
Manufacturing
Sector
China
January 2013
Produced by:

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Sector Forecasts
Sector forecasts

Highlights

2012f

2013f

2014f

2015f

2016f

Number of Enterprises, units

4,859

4,082

3,592

3,233

3,039

Revenue, RMB bn

1,796

2,263

2,897

3,679

4,562

193

235

294

356

420

Total Profits, RMB bn

Total Assets, RMB bn

1,573

1,919

2,380

2,832

3,427

Gross Industrial Output Value, RMB bn

1,868

2,316

2,941

3,706

4,521

Chinas pharmaceutical manufacturing sector is

expected to continue its double-digit growth of over
25% year-on-year in the next five years. There are no
doubts that the government will continue its efforts
and investments in the healthcare system.
According to a healthcare strategy report released in
August 2012, the government has set a goal of raising
life expectancy from 74.8 years in 2010 to 77 years in
2020, and lower the infant mortality rate from 12% in
2011 to below 10% in 2020. To do this, the
implementation of the second phase of the healthcare
system will be critical.

Revenue Growth, RMB bn

4,562

Pharmaceutical manufacturers will have to deal with a

more regulated market in the next five years, with
higher control on drug prices, more standardized
procurement of drugs included in the Essential Drugs
List for hospitals, and about 500 more drugs included
in the list. All this centralized procurement and price
regulation will favor the domestic producers, which are
expected to grow faster and establish stronger market
positions in the near future.

3,679
2,897
2,263
1,796

2012

2013

2014

2015

2016

Source: ISI Emerging Market Insights

Any redistribution of this information is strictly prohibited.
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