Accenture Health & Life Sciences

Table of Contents:

4 Executive summary
5 Introduction
6 China’s dramatic growth: Hype or reality?
8 China’s health care business environment
8 The rush to China – Will the current boom last?
9 Transitioning China’s health care system
12 Health care provision: Antibiotics and overcrowding
13 Regulatory climate: Slow improvements amidst complexity
17 China’s pharmaceutical industry: Impressive growth in the early 21st century
18 Industry dynamics: Growth opportunities, stiff competition
19 Over-the-counter, under the table: Self-medicated evolution
20 Traditional Chinese medicine: Partner, not competitor
22 The next decade: Ten trends, opportunities, threats
34 Sustainable growth and profitability: A 10-step critical path
42 Where next?
44 Appendix I: Research study design
46 Authors

With the compelling trade opportunities that exist between multinational
pharmaceutical companies and China, pharmaceutical executives worldwide
are wondering how to maximize profits and minimize risk in a market that is
undergoing revolutionary market change at an almost incomprehensibly rapid
rate. At Accenture, we believe China is simply a step towards something more
encompassing—global market intelligence combined with intimate local
knowledge, enabling the accelerated creation of innovative pharmaceutical
products for all geographies, disease areas, and market niches.

A global consulting firm committed to helping its clients succeed in international
markets, Accenture conducted a comprehensive study to understand
the true situation in China. The study involved conducting a comprehensive
review of existing research and articles, examining our own deep geographical
and industry specific knowledge and experience, and interviewing senior
executives responsible for their organization’s China operations at 15 major
pharmaceutical firms. Research for this study was carried out over a threemonth
time frame culminating in early 2005.