Singapore, July 16, 2010: In the Asia Pacific Pharmaceuticals and Healthcare Business Environment Ratings (BERs) for Q3 2010 published by Business Monitor International (BMI), China has maintained fourth position among the 16 markets covered in Asia Pacific region, with an above average pharmaceutical rating of 61.3.

China scores higher for pharmaceutical market (67) and market risks (67), but is lower in country risk (55) and country structure (43). In the Asia Pacific matrix of countries, China falls below Australia and Japan, but above Singapore and Taiwan. Globally, China is ranked 17th (as is Brazil), falling below the Netherlands and Spain and above Portugal and Poland.

The proprietary Drug Expenditure Forecast Model reveals that the value of China's pharmaceutical market is set to surpass several developed countries, including France and Germany, over the next few years. The reasons for this include an ambitious $124.5 bn (CNY 850 bn) healthcare reform program. China plans to widen insurance coverage to include many more of its vast rural population, as well as to build thousands of community healthcare centers over the next three years.

Additionally, the key driver of China's pharmaceutical market over the medium term is the booming economy. Although partially reliant on exports for economic sustenance, considerable domestic consumption means that real GDP growth in 2009 was a respectable 8.7 percent. Although down against previous years - 2008 (9%), 2007 (13%) and 2006 (11.6%) - this figure still stands well above the global average of -0.1%.

The reform of regulations on foreign direct investment (FDI) has seen pharmaceutical regulation in particular undergoing considerable change in recent years. Many processes have become increasingly aligned with international norms, making the operating environment increasingly transparent for outside investors.

The BMI market report indicates that drugmakers have recognized the opportunities present in China's fast growing pharmaceutical market. In April 2010, Sanofi-aventis expanded its R&D presence in China by opening a new R&D center. In March 2010, Eli Lilly announced plans to launch 15 new products in China over the next five years. Reuters reports the Indianapolis-based firm's Chief Executive, Mr John Lechleiter, describing the company's strategy as being 'investing aggressively in China' at a pharmaceutical conference in Shanghai, China. The shift in investment to an emerging market is invariably linked to austerity plans revealed by European governments, which intend to cut the prices of patented drugs.