The 9th Annual China Pharma, Life Science & Healthcare industry summit was held recently in Shanghai, China.Shenling Yang was given the opportunity to meet key officials and industry leaders to obtain first hand information on all the recent regulatory changes, new reform initiatives, future industry trends and successful strategies as well as solutions for continuous growth and profitability in China. Shenling writes:
"Although China’s pharmaceutical market has continued its rapid expansion in recent years and projected to grow at over 20% CAGR during the next four years, many challenges remain in the local market. Stricter drug regulations, increased pressure on price vs. cost, changing demographics and emerging issues brought by the new health system reform will significantly alter the playing field in the years to come. In 2008, China’s pharmaceutical sector grew by 26%. US $125 billion incremental government funding is targeted for improvement to the nation’s healthcare infrastructure and near universal health coverage by 2011. By 2013, China is projected to become the third largest Pharma market right after US and Japan."
Among 137 guest speakers and delegates, there were State Food and Drug Administration (SFDA) officers (5%), industry players (Both MNCs and Domestics, 58%) and solution providers (37%). Emerson was the only automation vendor attending this year’s meeting.
Executives from BMS, Pfizer, Novo Nordisk, GSK, Roche, Johnson & Johnson, Merck, Novartis, Eisai shared their insights. The focus was on winning strategies and future outlook for various life science industry segments in China for the next decade. Many of them participated in building their company’s first plant in China.
Four SFDA directors discussed upcoming regulatory changes on drug administration, registration, safety surveillance, GXP supervision and hospital reform.
The Chinese government announced continued plans to invest RMB 850 billion stimulus package on healthcare through 2011. Healthcare reform plans in China covers five areas:
- Basic medical insurance system – increase coverage of medical insurance coverage up to over 90% of population by 2011
- National Essential drug (EDL) system – essential drug list will be centrally purchased and distributed by the government
- Primary health care provision – more investment in Community Healthcare Centers (CHC), drive primary care patients from hospitals to CHCs
- More basic healthcare provision – enlarge new rural cooperative medical insurance system, build more county hospitals
- Public hospital reforms – pilot reforms in public hospitals with zero mark up and roll out by 2011
According to the director of Policy & Regulations for Ministry of Health, the new SFDA GMP guidelines will be out by end of this year. In order to receive the GMP certificate, maintaining and increasing drug quality will have to be a central theme for manufacturers. Consistent manufacturing, new equipment and systems will need to be purchased, people need to be trained, and SOPs and Batch Production Records need to be maintained.
Emerson will maintain a vigilant eye in these areas as our platforms (field instruments, DeltaV, Syncade, and PAT) provide considerable business value and stands apart from the competition. Shenling is facilitating a multi-portfolio strategy as the China market continues to mature and customers require broader based solutions. Thanks Shenling and good selling!
