Oncology in China

1. Oncology in China - Better Access to Cancer Therapies for the Rising Cancer Population through Healthcare Reforms Drives the Market

2. The Oncology Market in China is Expected to Witness a High Growth Rate Driven by Growing Cancer Prevalence and Better Drug Access The oncology market in China is estimated to reach $2.2 billion in 2017 from $830m in 2009, indicating a CAGR (Compound Annual Growth Rate) of 12.9% between 2009 and 2017. The major drivers of this growth will be the increasing prevalence population for major cancer indications, increased use of chemotherapy drugs, increasing rate of urbanization and high unmet need in terms of safer and more efficacious medicines. However, the dominance of generics in the local oncology market, the low level of reimbursements for Western, branded pharmaceutical drugs as well as the nuisance of counterfeit drugs are expected to be some of the biggest challenges facing big pharmaceutical companies attempting to establish themselves in the Chinese oncology market. The Top Five Companies in China’s Oncology Market Account for Less than 30% of Market Share The competition in the cancer therapeutics market in China is largely dominated by the big pharmaceutical companies of the US and Europe. However, the market is highly fragmented, with the top five players occupying only 29% of the entire market. There is only one Chinese company, Simcere, which found a

3. place in the top five players, with 5% of the market share, third highest after Roche/Genentech and AstraZeneca. This represents substantial scope for Mergers and Acquisitions (M&A) to improve the competitive positions of the leading players in the market. However, a noteworthy aspect of the competitive landscape is the next five major players in the market, which includes three Chinese companies (Sichuan Jiufeng, Jiangsu LYG Hengrui Pharma and Shanghai Jinhe Biotechnology Company Ltd.) and a Japanese company (Symbio Pharmaceuticals), as well as European company Sanofi-aventis. For further details, please click or add the below link to your browser: http://www.gbiresearch.com/Report.aspx?ID=Oncology-Market-in-China-Better-Access-to-Cancer-Therapies-for-the-Rising-Cancer-Population-through-Healthcare-Reforms-Drives-the-Market&ReportType=Industry_Report&Title=Pharmaceuticals_and_Healthcare Going forward, the competition in the branded oncology drugs market is expected to increase as the Chinese pharmaceutical market opens up to patented drugs. In addition, the growth in the overall oncology market is also expected to attract other major pharmaceutical companies to China.

4. TCM (Traditional Chinese Medicine) and Innovative Biologics will Receive More Favorable Pricing and Reimbursements in Future Period costs (summation of administration cost, sales cost and financial cost divided by the ex-factory price) and sales profits rate (pre-tax profit divided by the ex-factory price) are the two of the most important criteria that are considered while determining the prices for drugs in China. Currently, there are higher upper limits for period costs and lower upper limits for sales profits rate set for innovative as well as generic chemical drugs. On the other hand, there are comparatively higher upper limits for sales profits rate for TCM (Traditional Chinese Medicine) and innovative biologics. This, clearly, indicates that TCMs and biologics are set to receive more favorable pricing and reimbursements in future. While the period costs and sales profits rate should not exceed 45% and 18% respectively for innovative chemical drugs, the limits for generic chemicals are 30% and 8% respectively. On the other hand, for innovative biologic drugs, the ceiling for the sales profit rate is 20%, while the same for traditional Chinese medicines is 23%. Thus, in future, the pricing and reimbursement landscape for drugs in China is expected to be more favorable to innovative drugs, with the top priority being TCMs. As the latest oncology therapies largely include biological drugs with

5. superior efficacy and safety compared to traditional chemotherapy drugs, pharmaceutical companies which are developing such drugs are expected to receive more favorable reimbursements in China. GBI Research, the leading business intelligence provider, has released its latest research report, “Oncology in China – Better Access to Cancer Therapies for the Rising Cancer Population Through Healthcare Reforms Drives the Market”, which provides insights into oncology sales and price forecasts in China until 2017. The report also examines Chinese oncology treatment usage patterns. In addition, the report also includes insights into the oncology Research and Development (R&D) pipeline. The report provides an in-depth analysis of the top five oncology therapeutic indications, which are breast cancer, colorectal cancer, prostate cancer, lung cancer and Non-Hodgkin’s Lymphoma (NHL). It is built using data and information sourced from proprietary databases, primary and secondary research and in-house analysis by GBI Research’s team of industry experts. For further details, please click or add the below link to your browser: http://www.gbiresearch.com/Report.aspx?ID=Oncology-Market-in-China-Better-Access-to-Cancer-Therapies-for-the-Rising-Cancer-Population-through-Healthcare-Reforms-Drives-the-Market&ReportType=Industry_Report&Title=Pharmaceuticals_and_Healthcare

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