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?