China's Vaccine Market Poised for Takeoff
Stimulated by the recent SARS crisis, China's market
for vaccines is set for rapid growth. A Merrill Lynch
reports states that the global market for vaccines, which
stood at US$5.4 billion in 2001, will grow to US$10 billion
by 2006.
According to Wang Hexiang, secretary general of the China
Society for Preventive Medicine, China's market will grow
at an annual rate of 15%, which is significantly higher
than the global average of 10%. This faster than average
growth will be largely due to the economic effect the
SARS crisis has had on China.
China's market for vaccines is divided into two groups:
vaccines for children are handled through the national
budget, and vaccines are produced in state-owned factories.
Since these are handled through the national budget, with
current regulations, it is impossible for foreign companies
to participate.
The other group is vaccines which are paid for by the
patient. This group has shown rapid growth in the past
few years as China's middle class has become more affluent,
and pays more attention to health-related issues. Spending
in this area has far surpassed the level for most developing
countries, and it is estimated that it now stands at more
than UA$3 billion annually.
China has budgeted US$1.2 billion for the development
of epidemiology related infrastructure and research. On
April 23, the government allotted another US$2 billion
for the development of a SARS study and prevention center.
One of the tasks it will work on is a SARS vaccine.
European pharmaceutical makers have already established
development and packaging centers in China, mainly in
Shanghai. All of these new projects are joint ventures
with Chinese partners.
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