Drug Market Prospects For Greater China

The pharmaceutical market in "Greater China," which comprises the People's Republic of China, Hong Kong and Taiwan, reached a value of $5 billion in 1993, excluding bulk drugs and traditional Chinese medicines, estimates a new study from the IMS Pharma Strategy Group.

The PRC accounted for 75% of the market, even though per capita expenditure on pharmaceuticals during the year was very low, at $3.16, compared with $49.88 in Taiwan, the second-largest market with 21% of total market share last year.

The report notes that the PRC is by far the dominant market within the region, and is home to 22% of the world's population, but foreign pharmaceutical companies have very little representation or experience there. It is still a developing country, currently in transition from a planned state to a market economy, and the government is implementing strategies to enable it to compete on world markets, such as the introduction of Good Manufacturing Practice standards and improved patent protection.