Diabetes in China a booming market for profit
Type II diabetes has more than tripled in China over the past decade to well over 97 million, and growing at more than two million new cases every year...
By 2030, 40 million more Chinese will have diabetes, bringing the conservative estimate to 140 million.
This is creating a 20%-a-year growth in drug sales and straining health services and drug companies stoking the “need” for newer and costlier medications.
An average of $194 a year is spent treating each diabetes patient in China.
An average of $5,000 a year is spent treating each diabetes patient in the U.S.
Chinese diabetes costs $28 billion a year in medical costs and this is forecast by some to get to $100 billion by 2030.
China’s health spending is forecast to almost triple to $1 trillion from 2012-2020.
Chinese doctors want to augment the current 50-year-old pill with newer medicines, such as Januvia from Merck, which helps to stabilize blood-sugar, according to an April 2012 paper in the journal Diabetes & Metabolism.
Merck has applied to have their Januvia drug added to China’s National Drug Reimbursement List.
Addition makes it available to the masses and can bolster sales, with 12 of the top 15 multinational drugmakers deriving more than half their sales in China from subsidy-eligible medicines.
“China’s diabetes drugs market will expand 20% annually to reach 20 billion yuan ($3.2 billion) by 2016, spurred by guidelines that set higher treatment standards and China’s pharmaceuticals market overall will increase 15%-18% a year to reach as much as $165 billion over the same period” said Yan Shangjun, a Shanghai-based consultant with IMS Health Inc., in July 2012.
As reported by Business Week on November 4, 2012.