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. 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 mostly
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 phrama 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.
No comments:
Post a Comment