About RHEI

The China Market

In 2005, the average spending per person in China on drugs was $10 a year,, compared with $900 for each American. This difference is disappearing quickly. China’s exploding pharmaceutical market currently ranks 6th in the world, with an annual growth rate of nearly 20%. Drug sales in China, at $14 billion in 2006, are rising twice as fast as in the US, according to IMS. This means that by 2010, China will constitute a $40 billion pharmaceutical market and by 2020, China is expected to surpass the US. Private payer contribution for total healthcare was $23 billion in 2005 and is estimated to surpass $80 billion in 2015.

Penetrating this fast-growing Chinese market is crucial for the drug makers, as China’s middle class of 300 million already matches the entire US population and will double in three years. At the same time, prosperity is fuelling an explosion in Western-style diseases, including an epidemic of obesity that now affects 90 million Chinese. With poor air quality and 350 million smokers, asthma, cancer and lung disease are surging.

Currently, most Chinese pharmaceutical companies focus mainly on generics. As the diagnosis of cardio-vascular, metabolic, cancer and neurology diseases is accelerating, there is a great need for novel therapies to address these varieties of medical conditions. The growing demand for innovative therapeutics in China, the ability to obtain patent protection, as well as the growth in China’s economy and middle class population present an unprecedented opportunity for RHEI’s unique capabilities. With a regional high population density, risks for infections and self-increased awareness also fuel accelerated spending in areas such as dermatology and infectious diseases.