Despite Global Downturn, Generics Makers Stand to Reap Great Rewards in China's Evolving Pharmaceutical Market

Abstract

For generics pharmaceutical makers, the decision to enter the Chinese market is almost a foregone conclusion. Despite a deepening global financial crisis, China remains a tempting target for the world's struggling drug companies. Thanks to aggressive government stimulus in the health-care sector, China will continue to enjoy double-digit growth. Given the strong demand for inexpensive drugs, generics makers can benefit significantly in this landscape. Yet, the challenges posed by increased local competition, growing government intervention and uncertainty around the health care reforms make the road to China far from smooth - worthy of intensive study and creative planning. For generic drug makers, a combination of carefully chosen portfolios, clearly defined target sectors and strategies, and cooperation between local companies and multinationals can pave the way to success in this promising market.