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Chinese Drug Makers Cede Local Innovative Market To MNCs

This article was originally published in PharmAsia News

Executive Summary

China's pharmaceutical industry has the ability to become a major global player with innovative drugs if the government can make major reforms in its health care system, according to a report. Lin Ying, a political scientist, says the industry itself failed to promote innovation in favor of producing generics and relied on state-owned hospitals as sales sources. He said in his paper local drug makers allowed multinational corporations to become dominant in China because the locals were unwilling to invest in research and development. But now foreign companies are establishing R&D facilities in China, solidifying their dominance in innovative drugs and leaving Chinese firms to produce generics, which comprise 97 percent of all the drugs they produce. (Click here for more



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