Why is China an interesting and exciting Market for Dx?
The growth of the LifeScience sector is expected to be driven by rising demands from an aging population and the prevalence of chronic and communicable diseases. The Chinese market in particular, with its huge population, which has been slowed down for a short time by the one-child policy, but has slipped into a problem of providing care for the elderly, is predestined for the diagnostics and RUO industry.
And as is often the case, the right timing is crucial in life, but also in a growing market – and the Chinese LifeScience market can be labeled as such.
Opportunities exist for both multinational and local pharmaceutical companies through government support for the sector (by increasing health care accessibility, improving quality and controlling costs) and increasing demand (by an aging population and an increasingly affluent clientele).
This combination of a supporting state, an aging population, and a growing economy provide a very good basis for the diagnostics and RUO industry. To quote Linda Pullan from Pullan Consulting: "The transition from generic to real innovation is exploding, because when the Chinese decide to do something, they do it quickly." The potential of the Chinese market leads to an influx of new companies, alongside established multinational cooperation (MNCs). Everyone is trying to gain market share at an early stage of the growth curve, although there are still obstacles and challenges. The biggest innovation hurdle in China's domestic economy remains a series of reforms within the CFDA (China Food and Drug Administration). Thinking about the Chinese future and its ability to compete with established global LifeScience companies, the mistake of downplaying the country's capabilities could be undermined, as has already happened in other industries.
It can be predicted that the Chinese LifeScience market will continue to gain momentum.
Many Chinese study abroad and bring this knowledge, but also the way of thinking, back to their home country, which opens the market further for foreign companies and cooperation. Chinese companies are using these graduates’ potential to develop the industry decisively and overtake the USA as the market leader in LifeScience.
But even if domestic and foreign companies compete with each other, there will be a greater degree of cooperation and consolidation in the future – the possibilities of a win-win situation are available in any case.
the DxPx Team