By large the Chinese pharmaceutical sector still saw double-digit growth in 2013 despite a host of challenges stemmed from slowing Chinese economy, regulatory shakeups, cost containment measures and price cuts, as well as healthcare reform turbulences. Revenue and profit growth last year inherited the downtrend from 2012, although their rates were still considered robust compared with the global pharmaceutical industry and most of other Chinese industries.

Plagued by structural flaws, inadequate government financing as well as conflict of interests among different agencies and stakeholders, China’s ongoing healthcare reform remained to be bottlenecked in 2013 despite some superficial progresses.

In early 2013, the new Chinese leadership engineered a major reorganization of China’s healthcare regulatory regime to streamline jurisdictions and processes and to improve efficiency and strengthen regulation. Developments were across many different areas of drug regulation last year with the newly-created CFDA remaining to be preoccupied with promotion of drug quality and registration/evaluation efficiency.

On the front of drug pricing, NDRC, which was minimally affected by the government reorganization, is still overwhelmed by stakeholder disputes and has failed to make up its mind about the reform direction for another year.

In fact, 2013 had a good start with renewed optimisms, but business climate for the pharmaceutical industry in China made a sudden turn in late May when dramatic police investigation of GSK corruption scandal began with arrests and later public parades on TV of the company’s senior executives, consultants and related travel agents.

Confidence cracked by not shaken by recent drawbacks, MNCs seem ready to stay committed at least for now with its original plans of investments, R&D and manufacturing expansion as well as strategic alliances in China.

There are no easy solutions for MNC players in China. Companies will need to boost compliance structures, reform business models, refocus China strategies, form more R&D and business partnerships with local companies, target diseases prevalent to China, leverage China’s R&D and manufacturing capabilities globally, and integrate commercial investment plans with government objectives.

Even with the new Chinese leadership and the communist party recently reinstating its pledge to continue broad economic and healthcare reforms, the near future remains clouded by uncertainties and challenges ahead, which are underlined by the unrelenting Chinese economic slowdown.

There is no doubt the healthcare reform will go on with unchanged slogans. In reality, both central and local governments will be more financially strapped this year to achieve original reform objectives and they will be forced to rely on cost containment even more. The aftermath will be fallen quality of healthcare, increased safety incidents and reduced overall healthcare efficiency, potentially leading to social unrests in a period of political sensitivity.

Given the present market environment, it is generally anticipated that pharmaceutical industry and market growth in the near future would no longer match the high rates seen in 2010 and 2011. But don’t be discouraged prematurely. Most experts continue to agree that China is set to become the second-largest pharmaceutical market by 2020, and ultimately, the largest one in the world.

The Pharma China Annual Forum 2014 is an English language annual pharma industry event oriented for foreign drug companies in China. The event’s emphasis is on healthcare policies, drug regulations, market access issues as well as potential impacts of upcoming changes on the Chinese pharma industry. In addition, various trends in M&A and industry consolidation, R&D and licensing, and healthcare landscape, as well as future market outlook will be explored and discussed.

At least 11 leading experts will share their knowledge, insights and expertise. The presentation will be followed by an interactive panel discussion with speakers and other experts.