Continue to bet on China, these European and American giants | China | giants
According to the Wall Street Journal website on July 23, global pharmaceutical companies are resisting a trend in the business world: while many multinational corporations are shifting their focus elsewhere, they are still betting on China.
Western pharmaceutical companies, including Pfizer and AstraZeneca, have recently stated that they will be committed to helping China overcome the challenges posed by an aging population and have reached valuable licensing agreements with Chinese companies.
The actions of these pharmaceutical companies indicate that although the Chinese market may be affected by the escalating tensions between China and the United States, and Washington and some European governments are also working to reduce their dependence on China, the Chinese market remains attractive.
According to reports, the factors driving up demand in the Chinese market include the prolonged lifespan of people with chronic diseases and a rapidly increasing proportion of the total population, as well as a greater focus on health among the middle class.
Kuntai Pharmaceutical Company stated that China is the second largest pharmaceutical market in the world after the United States. Last year, China's drug expenditure reached 166 billion US dollars, and it is expected to increase by nearly 30 billion US dollars in the next five years. At the same time, the trade volume of pharmaceutical products between the United States and China has reached a historic high.
The relevant departments are also showing goodwill to foreign pharmaceutical companies. This month, officials from the Ministry of Commerce told representatives of pharmaceutical companies from the United States, Europe, and Japan, such as Pfizer and General Medical, that foreign pharmaceutical companies can look forward to the development opportunities brought by China's "unwavering promotion of high-level opening-up".
The AstraZeneca booth in the medical device and healthcare exhibition area of the 4th China International Import Expo, filmed on November 7, 2021.
![Continue to bet on China, these European and American giants | China | giants](https://a5qu.com/upload/images/e682939ec56c3e9b03190fc2ae901813.jpg)
Despite the increasing geopolitical risks, Western pharmaceutical companies are still standing still - not just because of the size of the Chinese market.
"In terms of developing and utilizing innovation capabilities, China is also an important market," said Pascal Sorio, CEO of AstraZeneca Pharmaceuticals, during a earnings conference call in April
What makes the Chinese market more attractive is that, according to a report by Setori Asset Management, the time required for Chinese regulatory authorities to approve new drugs has been almost halved in the six years leading up to 2022. At the same time, regulatory standards have been optimized, and the government has been encouraging innovation.
Merck, Johnson&Johnson, and other Western pharmaceutical giants attracted by Chinese experimental drugs have reached licensing agreements with Chinese companies, which could be worth billions of dollars. This month, Bayer announced a partnership with Peking University to explore "more exciting and breakthrough innovations from China.".
Last year, the Chinese market accounted for nearly 9% of Merck's sales and 13% of AstraZeneca's sales.