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.
Zhejiang Jiuzhou Pharmaceutical primarily manufactures active pharmaceutical ingredients and is transitioning to a contractor for drug development. The firm has partnerships with numerous international pharmaceutical companies, including Novartis, Gilead, and Zoetis. Its products have gained regulatory approval from multiple countries including the United States and Australia. Overseas markets contributed to more than 70% of the company’s revenue in 2016.