China's middle class alone number 300 million, equal to the entire U.S. population. It is a potential market for western medicine, considering that with the rise in population and acceptance of a western lifestyle in China, there has also been a rise in western diseases like obesity.
Ray Hill, an analyst of IMS Health in Norwalk, Connecticut, explained, "The most stellar opportunities lies in China, which continues to emerge as a significant healthcare market."
Aside from Chinese preference for plant-based treatments, foreign pharmaceutical companies have to contend with government price controls and a ban on consumer advertising for prescription drugs in China.
In 2006, $14 million worth of drugs were sold in China. Its growth rate is twice as fast compared to the U.S., the IMS said. Given China's population growth, it will become the fifth largest pharmaceutical market in two years, according to PricewaterhouseCoopers.
U.S. drug companies that have seen China's potential have invested more than $1 billion in China the past 15 years. They have hired thousands of drug representatives among locals to convince Chinese doctors to give western medicine a try. Part of their convincing tactics are in the form of research grants and overseas trip sponsorship for medical conferences.
While Chinese patients who have tried western drugs acknowledge it works faster and are more effective for life-threatening ailments like cancer and HIV, they nevertheless prefer Chinese herbal concoctions because of lower costs and lack of toxic side effects.
Pfizer, the world's largest pharmaceutical company, has tripled its Chinese staff since 2002 to 2,460, while firing American workers. It has invested over $500 million in China the past 15 years. Pfizer's efforts are paying off with revenues on its China operations rising by 21 percent to $221 million the past 12 months.
Among the western ailments spreading fast in China are obesity, heart diseases and diabetes. But Chinese are slower to accepting western medicine compared to embracing western lifestyle such as the fastfoods and a preference for cars over bicycles.
There are 112.5 million Chinese with high cholesterol problems, but only 3.5 percent take medication. Another 130 million have high blood pressure, with 28 percent undergoing treatment.
Rachel Wildman, an assistant professor at the Albert Einstein College of Medicine in New York, warned, "If they don't get this under control it will just completely overwhelm the heathcare system."
