Biotech Values

[DewDiligence]

Re: Pharmaceuticals in China (The Global Demographic Tailwind)

As a biotech investor, I’m not particularly interested in how Chinese are reimbursed for healthcare in general; what’s of consequence to me is how Chinese are reimbursed for prescription drugs (and, to a lesser extent, for medical devices such as stents).

The salient point in this thread is that Chinese reimbursement for prescription drugs is, on the whole, quite good. If it were not, Big Pharma would not be spending hundreds of millions of dollars to build out their sales and marketing infrastructures throughout China, including the interior portions of the country.

In short, China’s contribution to the top and bottom lines of multinational drug companies is not something that will become consequential to investors in five or ten years; rather, it is something that is consequential to investors right now and is becoming more so with each passing day.