Healthcare Innovation in China

Many investors would be surprised to learn that China is transforming its healthcare ecosystem into one that is incubating a promising culture for future healthcare innovation.

In fact, China is one of the world’s fastest-growing major healthcare markets with a 5-year compound annual growth rate of 11%, or almost triple the U.S. rate of 4%—and these estimates don’t account for the significant enhancements since the coronavirus outbreak.

The long-term growth opportunities in the Chinese healthcare sector are driven by several dynamic trends:

• An aging population
• An increasing prevalence of chronic diseases, particularly cancer
• Growing wealth to afford medical care
• Regulatory reform, and
• An influx of capital and talent

 

In this [i3] webinar co-hosted with Jennison, Sara Moreno, emerging markets portfolio manager, shared research perspectives on the structural changes in China’s healthcare system and the long-term growth potential.

Transcript (with timings)

3:22       China is leading the way on growth in many areas of innovation, but particularly in healthcare. Why is this so?

4:56       How did the Chinese government influence this change?

6:46       Generic medicine in China has changed in recent years. What has driven this change, and will it continue?

8:14       China has experienced an increase in chronic disease, which has had an effect on the local biotech and pharma industries.   How does this relate to the global industry?

10:58    What’s the difference between a chemical drug and a biological drug? Do they interact differently with cancer?

12:22    Of all the clinical trials in the world, biological drugs are now the bigger piece of the pie.

13:35    How do pharmaceutical companies in the emerging markets relate to the more well-known US and European companies?  Are there synergies and/or opportunities?

17:31    What’s a CDMO and CRO and where do they fit in the biotech process?  Do they present investment opportunities?

19:32    How do globalisation and geopolitics impact the Chinese industry and market opportunities?

22:30    There are some differences between diseases in China and the US, how does that effect the way the industry operates?

23:17    The impact of geopolitics on the semi-conductor industry and race for 5G is well-known. Is it a similar situation for biotech and pharma?

25:23    COVID-19 has shone a light on supply chains

26:40    What effect has COVID-19 had on the biotech sector?

29:12    It’s been said that COVID-19 vaccines don’t necessarily offer an investment opportunity set given the desire to make them available for the public good.

31:06    COVID-19 has brought about changes in the health sector more broadly, eg. how do you interact with your doctor now?  Where’s China on that journey?

32:53    How is the medical technology industry evolving?

35:17    India is the other big emerging market economy. Are they experiencing similar change and growth as compared to China?

39:00    Other ASEAN countries: Are they focusing on this industry?