Actuality and Future - China's Pharmaceutical

Only two decades ago, China was a poorof traditional Chinese medicines (TCMs). The TCM
agricultural country; now it becomes themarket is estimated at around US$6.9 billion. The
third-largest economy in the world, with a GDP ofsize of the market for western-style
more than $2, 108 billion in 2006. Experts forecastpharmaceuticals, therefore, can be reckoned at
that by 2020, China will be the world's largestaround US$20.8 billion, equal to around US$16 per
economy.capita. This makes China one of the largest
1, China's pharmaceutical marketmarkets in the world, and second only to Japan in
The Chinese pharmaceutical market has shownAsia. China is expected to become the fifth
impressive growth in recent years, in tandem withlargest drug market in the world by 2010. Growth
the country's rapid economic expansion.will be driven by factors such as an increasingly
Pharmaceutical sales in China (excluding Hongageing population, large market size (urban and
Kong) were estimated at US$27.7 billion in 2005,rural), government support in restructuring the
an increase of around 8.5% over the 2004 year.highly fragmented industry, IPR policies, as well as
The figure is distorted, however, by the presenceincreasing life expectancy.