Strengthening tie-ups with Chinese companies is another strategy that allows a foreign company to enter into China. Swedish company, NeuroVive decided to grant Sihuan Pharmaceutical an exclusive license to develop, market and sell CicloMulsion and NeuroSTAT in China, as well as the intellectual property rights and know how in connection with the products to pass clinical trials. Both CicloMulsion and NeuroSTAT are currently undergoing phase II and III clinical trials respectively.

The investments pouring in China are streamlined with the government's plan to boost the pharmaceutical industry of the country in its 12th Five Year Plan (2011-15), which was announced in 2011.

In 2011, China adopted a national goal of encouraging Chinese pharmaceutical market and sharpen the industrial advancement. The 12th Five Year Plan is focused on encouraging pharmaceutical companies to consolidate domestically and build its market share and technologies to strengthen the business. To achieve significant growth, China needs investments to possess cutting-edge technologies and skills to operate them. The plan is encouraging private capital investments into healthcare services and continuation of existing healthcare reforms.

KPMG states that medicine manufacturing in China will receive boost from the government in terms of funding support as well as policies, tax and R&D incentives. The national emphasis is on building China into a strong drug manufacturing country, capable of independent innovation, increased exports and a global pricing power.

Golden Meditech, a leading integrated healthcare enterprise in China, reported financial results that were in line with management expectations for the six months ending September 30, 2012. During the interim period, the group increased the total revenue by 6.4 percent to $28 million.

Similarly, China Cord Blood revealed its preliminary unaudited financial results for the second quarter and first half of fiscal year 2013, ending September 30, 2012. The revenue for the second quarter of fiscal 2013 increased by 30.5 percent to $20.4 million.