BRI: Biotechnology – Three Emerging Positive Trends to Watch in China: Opening Up Huge Long-term Market Opportunity

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Biotechnology – Three Emerging Positive Trends to Watch in China: Opening Up Huge Long-term Market Opportunity

— Michael Yee, Jefferies U.S. Equity Research – Healthcare, Biotechnology

Jefferies took a deep-dive look at the opportunities for U.S. biopharma in China, which has historically been closed to U.S. biopharma. The Chinese government, however, has recently shifted from a primarily “closed” network towards a more “open” and pro-innovation stance. Jefferies believes over time an estimated $20-25 billion “branded” drug market could grow to $50-100+ billion. AZN and Novo Nordisk currently generate $3 billion and $1.5 billion, respectively, in sales in China, and Jefferies estimates that if AMGN or GILD are able to generate 20-50% of that amount, it would be ~5% accretive to revenues per year over the next 3-5 years. FULL REPORT