Advisory and Corporate Services

Medical Device & Pharmaceutical







Opportunities in China’s Medical Device and Pharmaceuticals market

Business activity in the Medical Device and Pharmaceuticals sector in China is growing increasingly robust. Mergers and acquisitions activity is especially active, both domestically and from a cross-border perspective. Top international and domestic Chinese Medical Device and Pharmaceutical companies, as well as a host of smaller players, are moving to secure market share along with drug and device development permissions and capabilities in the context of China’s evolving regulatory regime. The prospect of greater protection for intellectual property is also a factor in the broader context of what is emerging as the world’s next great market for medical devices and patented drugs.

Companies who might have hesitated before now see that China is moving past its phase as a supply market for ingredients, materials  and generic finished products and drugs, and on to a new phase as the world’s second-largest health care market within this decade.

Organic market growth, driven by a combination of shifting age, wealth, and urbanisation demographics, is a second factor that has  whetted the appetite of industrial health care players. Many multinational organizations who have regarded China only as a source of raw materials or research are now contemplating China market entry. Others who have previously entered the market through joint ventures with Chinese companies and research institutes are now ready to ramp up their growth through acquisitions, where the right matches can be found. Key hurdles remain, among them discerning which targets have the desired capabilities, and which present unacceptable risks discoverable only through professional due diligence.

Serica focuses in particular on Medical Device companies, both domestic and foreign, and their activities in the China market—all from the viewpoint of prospective investors.



Case – Medical Device sector