Healthcare and Medical

Analysts expect China’s medical market to grow nearly 10-fold over the next decade as the country aims to overhaul its medical system.

China’s medical market is forecast to be worth $80 billion annually by 2013, and $220 billion by 2020, versus about $25 billion in 2009.

China, with 1.3 billion people, holds great promise for foreign drug makers, especially those with patents on drugs with no ready alternatives.

China’s plan to broaden the list of medicines eligible for a rebate from July is also expected to benefit Western drugmakers.

Pharmaceutical spending currently accounts for less than 5 percent of China’s GDP but analysts say it could grow by 18 percent annually, offering opportunities for foreign manufacturers over the next 3 – 5 years.

Beijing plans to spend about $125 billion to develop China’s healthcare system over a 3-year period, aiming to establish a platform for universal healthcare access by 2020 and plans to build thousands of hospitals and clinics to make it more accessible to the general public, particularly in rural areas.

The promise of China’s healthcare sector is causing a state of deals and share offerings. Since the start of 2010, 23 pharmaceutical and health-related companies have gone public in mainland China and Hong Kong, according to Dealogic. Interest in takeovers has picked up as well.