China Market Causes Headache for Big Foreign Drug Companies

(Beijing) – After enjoying years of rapid growth and high profits in China, pharmaceutical multinationals are facing challenges with slow sales, expired patents and policy changes, forcing them to adjust their business strategies.

With abundant patent holdings and strong pricing power, international drug makers have for years dominated China's pharmaceutical market, which had estimated revenue of 926 billion yuan in 2010, a recent report by the Chinese Academy of Social Sciences said. The country's top 10 market players are mainly multinationals and their joint ventures, the report said.