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3rd Pharmaceutical & Biotechnology Pioneer Forum 2010
Highlights of PBPF2010:
China’s Evolving Pharmaceutical Market
The new healthcare reform has put China in the spotlight. China's pharmaceutical market capacity is projected to exceed 310 billion RMB by 2011 and $220 billion by 2020, overtaking France, Germany, Japan to become the second largest following the United States. The Chinese central government continues to push through reform and encourage pharmaceutical innovation to meet healthcare demand growth. The preferential drug pricing policies for innovative drugs and tax incentives also suppot China in becoming a world R&D base. China is uniquely positioned to compete in the global innovative medicines industry.
Biopharma Leading the Pack
China’s biopharma industry is entering its “Golden Age” and the primary drivers will be antibodies, vaccine and protein therapeutics. In June 2009, the State Council issued several policies of accelerating the development of bio industry in China and pointed out that the biopharma field is the vital one for the development of modern biotechnology. NDRC arranged additional 442 million yuan RMB central investment to support biological medicine, bio-breeding, the construction of special biomedical engineering high-tech industrialization project and special construction project of national biological industry base conditions for public service. The Chinese central government plans to continue investments in the biopharma sector to help it become one of the leading industries in China by 2020.
New drug discovery is increasingly important, but the R&D process has never been more complex. Big pharma's thirst for external innovation is set to persist amidst the blockbuster drought. Also global economics, market pressures from payors and patients and a need to reduce internal infrastructure costs are forcing pharmaceutical companies to seek more international technology transfer and cross-border licensing opportunities. Technology transfer, especially licensing and cooperative development, has become a vital business development strategy for pharma industry. The Chieese Government is also making great efforts to support technology transfer and promote technological innovation. The Provisions for Registration of Drug Technology Transfer effect from August 19, 2009 will bring along a new wave of technology transfer in China.
Growing importance of CROs
Bioservice is another fast-rising segment in the Chinese biopharma industry. Currently there are several hundred CROs operating in China offering integrated or specialized services and China's CROs devoted to late-stage research will boom along at an 18% annual growth rate, with revenue projected to grow from $145 million to $240 million by 2012. Increasingly, CROs are evolving from one-off study vendors to become viable, strategic long-term partners in tune with the goals and objectives for companies both big (to help improve productivity) and small (to help maximize licensing opportunities by achieving proof-of-concept without high infrastructure costs). The role of CROs as a regulatory resource has also grown significantly due to the current regulatory landscape in China.
Greater Genetic Competition
Although the Chinese Government is taking initiatives to create a regulated market for fair competition of generics and innovative medicines, China’s pharmaceutical market is still generics dominated with over 5,000 generic companies. Expiring patents are even a bitter pill for big pharmas. A record number of drug patents will expire over the next few years, which should heighten competition from generic drugs and force down prices. In 2011, $58 billion of sales are at risk from patent expiries.
Centered around the topic of "New R&D Metrics", PBPF2010 will track various focus points on open innovation and licensing opportunities, preclinical and clinical developments, RNAi, antibody and protein therapeutics, and point to the best opportunities for R&D partnering, providing you with the unique platform to review, examine and take advantage of these key issues. It will also help to fuel your company’s dynamic growth in China. |
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