Keeping ahead in China means adapting to a shifting market, analysts say

April 1, 2013 by Arezu Sarvestani

Analysts at PricewaterhouseCoopers say that life sciences companies that are ready to evolve along with China's shifting landscape will be in the best position to capitalize on what's projected to become a $1 trillion healthcare market within the decade.

China with flag overlay

Many medical device companies have their eye on China - and with good reason - but the country's approach to healthcare is shifting, and companies that hope to capitalize on the China's exponential growth must be prepared to change with it, according to analysts at PricewaterhouseCoopers.

China's healthcare market is an irresistibly attractive one, given recent spikes in healthcare spending and more surges projected down the line, but "the rules to succeed in China's new economy are changing, and companies that are able to adapt may be well positioned to realize the benefits of participating in this important market," PwC researchers said.

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China's healthcare market is booming, fueled in part by aggressive government spending on healthcare reforms to expand insurance coverage and healthcare access, as well as by an aging population with strong underlying economic growth. Patients in China are seeing more chronic disease, but they are also developing larger margins of disposable income and demanding higher-quality healthcare, PwC reported. Together, those elements represent a recipe for rapid growth and an alluring market for medical device makers.