Although new regulations in Beijing have required leading global pharmaceutical companies to lower prices for certain products, China has also broadened state insurance and began processes to fast-track approvals that have spiked sales in the country, the second largest drug market in the world. AstraZeneca and Pfizer are among the largest overseas pharmaceutical companies in China in regards to sales, and both companies reported a 24% increase in sales in the last quarter. The American Chamber of Commerce in Shanghai reported an 87% optimism level among US pharmaceutical companies, a 40% increase, over the past year.

Last year, China’s pharmaceutical sector brought in $123 billion in sales and is forecast to grow over 5% through 2022 due to a growing wealthy and aging population. In recent years, the sales growth of multinational companies have slowed due to the new pricing regulations, which required hundreds of branded off-patent drugs to be added to state copayment processes; however, drug manufacturers are finding that the state insurance processes are helping grow sales, as they are getting reimbursements for many new products.

The removal of the duplicate clinical trial law, which required foreign drugmakers to re-conduct trials in China to launch drugs that were already approved in their country of origin, has also helped accelerate drug sales in China. In 2017, 39 imported drugs were approved for sale in China, which is more than in the last 3 years combined. So far, in 2018, over 15 imported drugs have been approved.

Source: Financial Times