Series A-4: Are companies building drugs for the Chinese market or the western/US market?

Mostly Chinese.

 

According to IMS, China’s spending in medicine has been growing fast, reaching $137 billion in 2018[1].

 

 

Another research database shows that in 2018, China’ exports in medicine was $17.4 billion[2] and imports was $29.6 billion[3].

 

Although they might use different sources/measures, we could roughly estimate that in 2018, non-import medicine consumption was 137-29.6 = 107.4 billion and domestic medicine production was 107.4+17.4 = 124.8 billion.

 

Therefore, 86% of Chinese drug companies’ production was for the domestic market while 14% was for exports in 2018.

 

For the more modern (or newly funded) innovative biotech/drug companies in China, they are targeting the global markets. Usually they will divide the commercial rights by regions and retain the greater china rights while sell the rest (another source of funding). Some innovative drug candidates’ global rights ex china have already been licensed/acquired by western/US pharmaceutical companies. Most Chinese biotech companies don’t have the capability to develop/commercialize outside the greater china area.

[1] https://www.iqvia.com/institute/reports/the-global-use-of-medicine-in-2019-and-outlook-to-2023

[2] http://s.askci.com/news/maoyi/20190624/1150071148256.shtml

[3] http://s.askci.com/news/maoyi/20190625/1430421148825.shtml