The Competitive Landscape of Global and Chinese Biomedical Industry

1. Competitive landscape of global biomedical industry

The global biomedical industry currently takes on the situation of concentrated development, and mainly distributes in the U.S., Europe, Japan, India, Singapore and China, etc., wherein, the U.S., Europe and Japan, etc. hold dominant positions.

The U.S. biomedical industry has established intergenerational advantage in the world and is leading the globe in R&D strength and industry development, with bio-drugs having been widely applied to the treatment of cancers, diabetes and chronic diseases. The solid industrial foundation and technical advantages of Europe enable its biomedical industry to follow closely the U.S. in the forefront of the world, and the deepening of the aging of population contributes to the broad market prospect of bio-drugs in the Europe.

Japanese biomedical area grows rapidly and leads in Asia despite starting later than the European and American countries. Besides Japan, the biomedical industry in China, India, Singapore and other countries in Asia also grows fast through the active nurturing and support of government of own country. In addition to North America and Europe, Asia has become another center in the global biomedical industry.

2. Competitive landscape of Chinese biomedical industry

Chinese government has been energetically supporting the development of biomedical industry in recent years, which has taken on the situation of concentrated development through linkage of government guidance and private investment.

Chinese biomedical industry has preliminarily formed the industry spatial pattern of taking Yangtze River Delta and Bohai Rim as the core, with the rapid development of Pearl River Delta and Northeast, etc. Moreover, Henan, Hunan and Hubei in central region, and Sichuan and Chongqing in western region also feature good industrial foundations.

Yangtze River Delta has high innovation ability and international communication level in biomedical industry, possesses the largest number of transnational biomedical enterprises, has large advantages in R&D and industrialization, outsourcing services and international communication, etc., and has gradually formed the biomedical industrial cluster centering on Shanghai.

In Bohai Rim, there is sufficient human resources reserve for biomedical industry, and there are abundant clinical resources and educational resources; provinces and cities have strong complementarity in the pharmaceutical industry chain, and form an industrial cluster with relatively strong innovation ability by centering on Beijing.

With a mature market economic system, Pearl River Delta has huge market potentials. The region has a developed pharmaceutical circulation system, and as it is adjacent to Hong Kong and Macao, it has strong external radiation and active private capital. It has formed a biomedical industrial cluster developed in commercial network by centering on key cities such as Guangzhou, Shenzhen and Zhuhai.

In addition, Chengdu-Chongqing economic circle is active in the innovation of biomedical engineering area, being an important base for converting biomedical achievements in the western region; taking Changchun City as the core, Chang-Ji-Tu region is a vaccine production base with a relatively large scale in Asia; Chang-Zhu-Tan region possesses many biomedical industry bases such as Changsha National Hi-Tech Industrial Development Zone and Liuyang Biomedical Park, and has a solid industrial foundation; Wuhan City Group has gathered more than 300 various R&D institutions and famous enterprises, and formed sound platform and environment to support innovation and industrialized development.

Viewed from the micro perspective, the above regions gather most of Chinese biomedical enterprises leading in technology in China and with relatively large scales. According to the disclosure of list of listed companies by China Securities Regulatory Commission, there were 173 listed companies in the Chinese pharmaceutical industry by 2015, and Yangtze River Delta, Bohai Rim and Pearl River Delta separately gathered 43, 34 and 19 therein, accounting for 55.49% of the total.

But overall, there is still no the situation of several enterprises cornering the market formed in Chinese biomedical industry. Compared to international giants, Chinese biomedical enterprises are generally small in scale, and still have large development potentials. M&A and restructuring opportunities will gradually appear in the industry in the future with the development and growth of those enterprises.



Published by: Biomedical Industry, 14/03/2016

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