China’s Intravenous Solution Producers Expect Fair Fight With Foreign Competitors
This article was originally published in PharmAsia News
Executive Summary
Baxter recently announced an additional $146 million investment to expand its intravenous solution capacity in China (PharmAsia News, May 18, 2009). The move marks foreign corporations' strategy to tighten their monopoly on the top-grade hospital market, further putting the squeeze on domestic firms. Currently, most of China's 400-plus intravenous solution providers comprise workshops with low-end products such as nutrient fluids. While MNCs enjoy high profits, locals fight based on price cutting. Industry analysts believe that the healthcare reform brings huge opportunity to mid- and low-end producers, spelling a fresh round of competition that will lead to a shake-up. However, others point out that domestic firms cannot contend against international players if healthcare policies remain preferential for the latter. (Click here for more - Chinese Language)