Vaccine Market Access in China – M&A paves the way for foreign companies

Published: November 2011
No. of Pages: 81
  

Introduction

This report presents an overview of the market environment for vaccine makers in China. It discusses vaccine recommendations and coverage, the regulatory situation, pricing an reimbursement and vaccine distribution in China. It analyzes portfolios, pipelines, strategies and local deals of both domestic and multinational vaccine companies and suggests strategies for optimal market penetration.

Features and benefits

  • Review the current regulatory process, pricing, vaccination recommendations and coverage in China.
  • Examine the major drivers and resistors of the current Chinese vaccine market. Understand the key opportunities and threats facing developers.
  • Develop commercial strategies for operating in the Chinese vaccines market.

Highlights

  • China is the largest vaccine consumer in the world. It is a closed market with a strong local vaccine industry, access to which is challenging for Western players. While state-owned companies dominate the category 1 vaccine market, privately owned and foreign vaccine manufacturers play a significant role in the category 2 vaccine market.
  • GlaxoSmithKline is the biggest multinational vaccine player in China, with 23 million doses of vaccine approved in 2010. The company’s most successful vaccines in China are its MMR, hepatitis B and A vaccines. Among domestic vaccine players, CNBG and Sinovac excel in terms of category 1 vaccine supply and strong R&D capacities.
  • In order to penetrate the Chinese market, partnerships with local vaccine companies are crucial for Western vaccine manufacturers. Datamonitor believes that hospitals in second- and third-tier cities will be the next target for multinational companies. New GMP guidelines will further increase M&A opportunities for multinationals.

Your key questions answered

  • What are the key domestic and multinational companies active in the vaccine development?
  • What are the resistors and drivers of the Chinese human vaccine market?
  • How are vaccines categorized in China? What is the regulatory process of vaccine development?

Vaccine Market Access in China – M&A paves the way for foreign companies

Table Of Contents

OVERVIEW
Catalyst
Summary

EXECUTIVE SUMMARY
Strategic scoping and focus
Datamonitor insight into the Chinese vaccines market
Related reports

MARKET OVERVIEW
Key findings
Historic development
Current market situation
In 2009, the Chinese vaccine market was valued at $700m–1,520m, growing at a CAGR of around 15%
More than 1 billion doses of human vaccines were registered and approved by the National Institutes of Food and Drug Control in 2010
According to WHO estimates, 200 million doses of the five main vaccines are distributed in China per year
Regulatory process for vaccines
It takes at least 2 years for an imported vaccine to be approved and launched in China
Domestic vaccine manufacturers have advantages in the approval process with the central and local authorities
The central government has put vaccine development at the heart of its biological products development strategy
New SFDA guidance emphasizes quality and safety as key considerations for vaccine manufacturing
Vaccination recommendations
Vaccines are grouped into two categories in China
Vaccine pricing
Different pricing mechanisms apply to category 1 and category 2 vaccines in China
Prices of category 1 vaccines can fluctuate depending on medical needs
Vaccines from multinational companies enjoy higher prices in China
Local governments have conducted a series of price cuts on Category 2 vaccines
Vaccine reimbursement
NIP vaccines are fully paid for by the government
The human rabies vaccine was the only category 2 vaccine listed on the 2009 version of the NRDL
Vaccine distribution and access
Under new regulations, the number of vaccine distribution sites increased from 143 to more than 700
Vaccination coverage
Official statistics suggest that vaccination coverage is very high in China
In reality, the vaccination coverage for migrant populations and newborns in rural less developed regions is much lower than claimed in the official statistics

KEY COMPANIES ACTIVE IN THE CHINESE VACCINES MARKET
Key findings
Industry overview
More than 50 vaccine manufacturers are registered with the SFDA, with an annual output of more than 1 billion doses
Multinational corporations
GlaxoSmithKline
Sanofi Pasteur
Merck & Co., Novartis, and Pfizer
Local vaccine players
China National Biotec Group
Sinovac

STRATEGIC RECOMMENDATIONS FOR MARKET ACCESS
Key findings
Key future target indications
SWOT analysis of China as a target market for vaccines
Drivers and resistors
Drivers
Resistors
Best strategy for market penetration

BIBLIOGRAPHY
Journal articles
Websites
Datamonitor reports

APPENDIX
Contributing experts
Conferences attended
Report methodology

LIST OF TABLES

Table: Development of the Chinese vaccine industry, 1919–2011
Table: Approved volume of category 1 and category 2 vaccines in China, by type of manufacturer (000s of doses), 2008–10
Table: China: estimated number of vaccine doses distributed for key indications, 20 10
Table: Regulations for the vaccines industry in China, 1982–2011
Table: Examples of category 1 and category 2 vaccines, 2011
Table: Vaccine recommendations and reimbursement status in China, 2011
Table: China: vaccination coverage in different regions
Table: SFDA-registered vaccine manufacturers, 2011
Table: Total number of vaccine doses produced by key multinational vaccine manufacturers’ registered with and approved by the China National Institutes for Food and Drug Control , 2010
Table: GlaxoSmithKline: marketed vaccines in mainland China, 2011
Table: GlaxoSmithKline: pipeline vaccines in mainland China, 2011
Table: Sanofi Pasteur: marketed vaccines in mainland China, 2011
Table: Merck & Co., Novartis, and Pfizer: marketed vaccines in China, 2010
Table: Key local vaccine manufacturers in China, 20 11
Table: China National Biotec Group : human vaccine portfolio, 2011
Table: China National Biotec Group : key vaccine deals and alliances, 2011
Table: Sinovac’s sales breakdown, by product class ($m), 2011
Table: Sinovac markets eight vaccines in mainland China, 2011
Table: Sinovac: pipeline products in mainland China, 2011
Table: Sinovac: key vaccine deals and alliances, 20 11
Table: SWOT analysis of China as vaccine market, 20 11
Table: Summary of the drivers and resistors that will impact the human vaccine market in China, 2011
Table: Main demographic indicators of the two recent nationwide censuses in China, 2005 and 2011
Table: Recent deals and alliances in the Chinese vaccine market , 2009– 11
Table: Vaccines listed on the immunization program of Shanghai municipality, 2011
Table: Number of multinational vaccines listed on the immunization program of Shanghai municipality, 2011

LIST OF FIGURES

Figure: Timeline: key events affecting the Chinese vaccine industry, 1919–2011
Figure: Volume share of state-owned, privately owned, and foreign companies in the category 1 and category 2 vaccine markets in China, 2010
Figure: China: application and approval procedures for imported vaccine, 2011
Figure: SFDA key initiatives in the Notice for Further Strengthening the Supervision of Quality and Safety of Vaccines, 2010
Figure: Vaccination schedule in China, 2011
Figure: China: three ways of drug pricing in China, 2010
Figure: Average vaccine prices in China, by type of company, 2009
Figure: Distribution of category 1 and category 2 vaccines in China, 2011
Figure: Vaccination coverage in China, 2006–10
Figure: The five key multinational vaccine players operating in China, 2011
Figure: Number of approved doses of multinational vaccine manufacturers, 2008–10
Figure: Volume share of the approved vaccine doses by the five multinational vaccine manufacturers in China, 2010
Figure: GlaxoSmithKline’s main vaccine operations in China, 2011
Figure: Sanofi Pasteur’s main vaccine operations in China, 2011
Figure: A brief history of China National Biotec Group
Figure: China National Biotec Group: organizational structure and geographic presence, 2011
Figure: A brief history of Sinovac Biotech , 2011
Figure: Sinovac : geographic presence in China , 2011
Figure: Key future target vaccine indications in China, 20 11
Figure: China: population indicators from 1950 to 2050
Figure: The Shanxi vaccine scandal, 2007–10

Published By: Datamonitor
Product Code: Datamonitor25439


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