As the world’s second-largest healthcare market, China spends about $575 billion a year on the sector, roughly equivalent to Sweden’s GDP. But because of China’s large population, that translates into only $420 in per capita healthcare spending, just 4% of what an average American spends. This healthcare supply shortage is exacerbated by rising demand from wealthier Chinese who seek quality care, better insurance, and diverse services.
On the regulatory side, the Chinese government continues to reform the healthcare sector by allowing doctors to work
outside the public hospital system, encouraging the privatization of hospitals, and expanding public healthcare insurance to cover private hospitals.
The significant mismatch between supply and demand, coupled with policy changes to support the sector, have incentivized private investment to flock into areas ranging from advanced pharmaceuticals and medical devices to primary care clinics, elderly care, and insurance products.
Hangzhou Tigermed Consulting is a contract research organization that offers full clinical trial services. The firm has clinical centers in South Korea, Hong Kong, Australia, Malaysia, and Singapore, with foreign markets contributing to more than 60% of its 2016 revenue.
Canada Australia Japan Malaysia South Korea India Singapore Hong Kong Taiwan
Frontage Laboratories, Inc. 700 Pennsylvania Dr Exton, PA 19341 610.232.0100 Tigermed-Bdm Inc. 100 Franklin Square Dr Somerset, NJ 08873, 609.843.0159
In 2016, the company invested $1 million through its US subsidiary Frontage Laboratories Inc. to establish a joint venture, FJ Pharma LLC, with Zhejiang Jiuzhou Pharmaceutical Co., Ltd. The new venture focuses on medical intermediate development and manufacturing, and is based in Exton, Pennsylvania. In the same year, the company also acquired manufacturing facilities in Philadelphia from Sun Pharmaceutical Industries Ltd. for $23 million.
In 2015, the company acquired 98.14% stake in DreamCIS Inc. for roughly $26 million. The target is a leading clinical research organization in South Korea.