The Activities of the Danish Embassy and DCBF in the Medico-Pharma Sector in China

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This optimism with regard to the Chinese market potential within the medico sector is due primarily to two factors. Firstly, the importance of China within this sector is projected to only keep growing, as the Chinese authorities have decided to continuously up-scale its investments in the health area; here the health insurance scheme is a most important element. Secondly, due to the continued growth of the Chinese middle-class and an ageing population, the Chinese market will provide a stable consumer base.

Denmark shares the international optimism regarding the Chinese medico market.

For the Trade Council of Denmark in China/the Royal Danish Embassy in Beijing, the Health industry is classified into 4 major categories: medical devices, pharmaceuticals, assistive technology / rehabilitation equipment, and biotechnology.

From 2000 to 2006, the Danish export of medicine and pharmaceutical products to China has grown in DKK value from 56 million to 329 million respectively.

During the first six months of 2007, medical and pharmaceutical products were Denmark’s third largest export product segment to China. The market for pharmaceuticals in China is estimated at 9 billion USD per year and is expected to grow to the world’s second largest medico market within 6 to 8 years. Foreign companies currently possess around 25 to 30% of the market.

Additionally, many Danish companies have noticed that the Chinese authorities are much more positive towards pharmaceutical companies than authorities in North America and Europe, as they are seen as providers of hi-tech jobs and important technology. At the same time, the companies face the same kind of challenges as in other markets in terms of having their products approved, securing prices and reimbursement etc.

TCD-C spends considerable time on establishing positive relations with Chinese health authorities in collaboration with Danish companies. On 25^th of September 2007, TCD-C and  Danish-Chinese Business Forum arranged a seminar with participants from the Danish Medicines Agency, Danish Ministry of Health, Danish pharmaceutical companies and Chinese officials from SFDA (State Food and Drug Administration) and MoLSS (Ministry of Labour and Social Security).

The seminar was especially intended to inform the Chinese officials about the structure of the Danish health sector. Presentations from the Danish Ministry of Health treated the issues regarding the division of tasks between Danish regions and municipalities while the presentations from the Danish Medicines Agency dealt with issues regarding the structure of the Danish pharmaceutical market, reimbursement, and approval of new pharmaceutical products. Danish medico and pharmaceutical companies were also able to present their products and functions at the seminar.

The Chinese authorities have decided that the rural cooperative medical system should cover 80% of all villages by 2010 and that 300 million urban residents need to be covered by a basic medical insurance. This attempt to secure more equal access to medical services is at the same time an opportunity for Danish companies selling their products in the Chinese market.

In 2008, TCD-C plans on conducting further seminars and events for Danish medico and pharmaceutical companies in order to promote them on the Chinese market. Danish medico and pharmaceutical companies can hardly afford to ignore China, which is one of the fastest growing markets in the world and which can offer very attractive sourcing possibilities. TCD-C can provide useful services to Danish companies pursuing these possibilities and is for instance offering to secure product approvals in collaboration with Chinese specialists.  

Thomas Højlund Christensen, Danish Embassy in Beijing

E-mail: thhchr@um.dk

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