|By Marketwired - Medical and Healthcare|
|Tuesday, 15 October 2013 15:03|
Transformation in China is likely to disrupt business. To better understand how these disruptions could play out, McKinsey & Company interviewed 50 top pharma execs for a report titled, "In Search Of New Growth Models For Big Pharma In China," to be unveiled during the PharmAsia Summit Shanghai, Oct. 21.
MNCs are facing headwinds from regulatory and policy challenges, including lack of reimbursement for innovative drugs, fragmented tenders and intensifying price pressure, and a slow registration process for new products. Innovative products and new commercial models are increasingly important for China's dynamic pharma market, which reached $70 billion in 2013, and growing at a healthy 20%.
There is "a lot of anxiety" about the impact of the Essential Drugs List, with most respondents in the survey viewing it more of a threat than an opportunity, noted McKinsey & Co. Partner Franck Le Deu. Companies realize that relying on older off-patent products to drive growth is "increasingly challenging, and nobody knows for sure when cost containment measures will start to significantly affect companies' revenues."
According to the survey, shifting demographics and growing disease prevalence were seen as the top two trends driving market growth. Available treatment options have grown with improved patient access to targeted therapies and biologics, and patients in lower-tier cities are seeing expanded access to many therapies for the first time thanks to major upgrades in facilities and public insurance coverage.
All conference attendees will receive a complimentary copy of the report.
For further information, please visit: http://www.PharmAsiaSummit.com.
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