China is the 3rd largest pharmaceutical market globally. The market continues to grow fast, but it is still a self-pay market. Generics dominate the market by volume with lower price, and the market share of value keeps growing. There is often one product with dozens of manufacturers. The Rx market represents a majority of the market share, but the OTC market is growing rapidly. A typical China Rx “blockbuster” is about $100 million USD in annual sales.
Hospitals are the main channel of drug dispensing, and the hospital market is shifting to medium and small cities. The level of spending per patient is significantly higher in large hospitals. Low pricing and kickbacks to doctors are the major marketing strategies for most local companies.
For more information about the regulatory process for drugs in China, please see Pharmaceutical and API Product Registration in China.
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