Monday, 17 December 2012

Medical research in China is a $7 billion industry

In 2012, the Medical Research industry in China is expected to generate $6.8 billion. Annualized growth over the past five years period has been about 14.3%. Over half of industry revenue is derived from government funding.
The Medical Research industry is beginning to mature and competition for government funds and private funds has increased. IBISWorld estimates that profitability is low in 2012 due to the high costs for medical research and commercialization difficulties. Profitability varies among different participants in the industry, however. Biotechnology companies tend to be profitable, while medical research institutes are more likely to suffer losses.
In 2012, the combined market share of the top four companies in the Medical Research industry in China – Chinese Academy of Sciences, WuXi AppTec, Shanghai Institute of Pharmaceutical Industry, and the Academy of Military Medical Sciences – is estimated at 19.7%. This low concentration level is due to the existence of a large number of non-profit medical research institutions and small-scale biotechnology companies. Non-profit medical research institutions rely heavily on government funding.
With increasing importance attached to research and development, the Medical Research industry in China is expected to develop steadily over the next five years. More research institutions are expected to restructure into for-profit enterprises or establish their own enterprises. Further, biotechnology companies will continue to increase in size.
Source: IBIS World

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