NatureFirst USA

Drug Industry
World Top 20 Pharmaceutical Companies Building Factories in China

February 6, 2004

Of the top 500 foreign invested companies in China, 14 were
pharmaceutical companies. 13 of these were controlled by foreign
investors. As China's pharmaceutical market grows at an annual rate of 15%
to 20%, the world's top 20 multinational pharmaceutical companies have
already set up joint ventures in China. And of all the 50 best-selling
drugs in the Chinese market, 40 were produced by foreign drug
makers.Statistics showed in 2000, the world's annual per capita drug
consumption in 2000 was 50 USD. In particular, the figure was 300 USD for
Americans and less than 10 USD for the Chinese. Despite such a huge gap,
China's drug market is full of potential. It will be growing at an annual
rate of 15% to 20% in the coming 5 years. '

As predicted by analysts, China
will beat the US and become the world's largest drug market in 2020 with a
market capacity of 120 billion USD.It is precisely the enormous market
potential of China that has attracted a horde of foreign drug companies
with increasing investment. For example, AstraZeneca, one of the world's
top 5 drug companies, is spending 100 million USD building Asia's largest
drug plant in Wuxi, China. Another leading drug maker, Novo Nordisk, set
up its first overseas R&D center out of its origin of Denmark. The share
of its Chinese business in its global sales exceeded that of its Indian
operation this year, making China its largest market in Asia second only
to Japan.

The company already set its next year's goal for its China
operation of overtaking its Australian operation. Another drug company
from the world's top 20, Boehringer Ingelheim International Group
headquartered in Germany, built a new plant in Zhangjiang High-tech Park
in Pudong, Shanghai last March. With this 41-million-USD plant as the
company's second largest plant in Asia, Boehringer Ingelheim is planning
to further reinforce its production network in Japan, Indian, South Korea
and Chinese Taiwan province. (FDI)



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