Pharmaceutical and Biotech Sectors Experience Surge in China

Over the last two decades, Lindsay Rosenwald has funded an array of small biotechnology firms, and he has sold several of these companies to large pharmaceutical corporations. Today, Lindsay Rosenwald draws on this experience in his work as co-manager of the asset management firm Opus Point Partners in New York City.

In recent years, health care spending has increased dramatically in China. In 2006, only 43 percent of the Chinese population had health insurance, and the average health care spending per person was $119. Five years later, 95 percent of the population had health insurance, and spending had jumped to $261 per person.

In response to the country’s increasing commitment to health care, pharmaceutical companies have started making inroads in the Chinese market. Major firms such as Sanofi, Novo Nordisk A/S, and Eli Lilly and Company have helped grow the pharmaceutical market size to more than $71 billion. Additionally, these corporations are collaborating with and investing in an array of local partners.

China also boasts a burgeoning biotechnology industry; thanks to more than $160 billion in investments, the sector has developed 12 new drugs. Presently, the country is focused primarily on producing therapies to treat cancer, and it places a significant emphasis on biologics rather than small molecule drugs. By 2020, officials hope to bring 100 new therapies to market.