Updated on 28 January 2013
This newfound support for innovation and research will surely pay off in China given the rapidly increasing demands of the population. Not only are better medical care and more effective drugs now expected, but also with China's middle class continually expanding, more people than ever can afford this improved care. China's middle consumer class is estimated to hit 600 million by 2020.
But to fully reap the rewards of this growing market, it is important for companies to understand the ways in which the entire industrial chain can be used to improve growth. For example, Roche Holding has found a way to sell its cancer drugs to millions of Chinese who couldn't otherwise afford them by first selling them insurance.
The world's biggest cancer medicine producer is collaborating with Swiss Re, the world's second-largest re-insurer, and is on track to sell bring in 10 million clients this year, with expected growth of 20 percent in 2013. This shows the potential for growth right across the healthcare value chain in China.
With a combination of China's growing market and the resources and support of the right area, the world's most innovative biotech and pharmaceutical companies have a bright future in China.