Chinese pharmaceutical companies have invested over $5.2 billion in foreign health care acquisitions this year. Noteworthy deals include the Humanwell Healthcare’s acquisition of Epic Pharma, a US-based generic drug developing company, for $550 million, and Shanghai Fosun Pharmaceutical’s acquisition of India’s Gland Pharma for $1.3 billion, which gives the Chinese company more access to drug factories that supply the US. China’s pharmaceutical imports increased by 11% in 2015. The rate of imported pharmaceuticals increased $12.9 billion from 2008 to 2014, reaching $17.8 billion in 2014; pharmaceutical exports, however, increased $3.7 billion during the same time period, reaching $6.6 billion in 2014. This discrepancy is largely due to the rapidly growing demand of branded pharmaceuticals in the country, which are outperforming the exports of pharmaceutical ingredients and generic drugs. Chinese companies are also aiming to acquire established manufacturers of APIs in both the US and Europe to have greater control over the ingredients in generic drugs.

Source: Bloomberg