China - The New Go-To Market
Updated: Dec 7, 2018
After conducting several projects in recent years in China, along with other emerging markets in Asia and Latin America, Access Infinity has made a conscious decision to need to dedicate some of our resources in the Far East. As with the expertise developed in EU5 and US markets, China has been a focus for many of our clients. It stands out as an attractive, unconventional and important market for several reasons:
Year on year growth in terms of per capita spending on healthcare currently stands at around $750.
A higher spending on pharmaceuticals in comparison to other developed markets makes it lucrative for pharmaceutical companies.
Whilst boasting free pricing, the reality of this market is one which employs a huge discounting strategy.
Pricing referencing among provinces at net prices makes it extremely challenging yet interesting to develop a launch sequence and provincial focus strategy.
There is huge disparity among different provinces in the healthcare benefits provided as well as affordability of its population.
It is one of very few countries which brings together Western Medication and Chinese Traditional Medication in the same mix of funding and treatment development.
There are approx. 70% western drugs and 30% Chinese medicines in the essential drug list of 520 products.
In the NRDL the distribution is nearing 50:50 (987 Chinese and 1140 Western medication)
Access Infinity aims to further develop its current expertise on China and work with several pharmaceutical companies in their pricing and market access strategies including conducting
1-1 payer research, advisory boards and discounting strategies. We have developed several local partnerships as well as dedicated resources in China to achieve this ambitious goal. As part of this endeavour, Access Infinity team members from global office in London and as well as its APAC office are spending a week there. China, here we come!
- Shrinivas Mukku.