Which service areas does Deloitte focus on in the life sciences industry, and where does the company see opportunities to expand its market share?

Deloitte offers a range of key services to clients in the life sciences sector. One of the fast-growing areas in China is operational efficiency and strategy consulting services. With domestic players facing increasing competition within the local market, they are also looking to capitalize on opportunities for overseas expansion. Factors such as pricing pressure and regulatory changes create turbulence for multinational companies, driving the need for stronger market strategy operations and compliance services. Deloitte serves both domestic and multinational companies, and its focus on these areas is growing to meet the evolving demands of the market.

What are the top risks for R&D companies seeking to go public in the Chinese pharmaceutical markets?

Pre-IPO R&D companies in the Chinese pharmaceutical markets need to address two key areas of concern: ensuring a sustainable business model and compliance adherence. The pharmaceutical market in China is a sector strongly supported by the government, aiming to position the country as a hub for R&D in the life sciences. China has made significant progress, ranking third in the global R&D ranking scorecard with 33 Chinese life science companies participating in the European Union’s Economics of Industrial Research and Innovation (IRI) project. However, small to medium-sized companies still struggle to find adequate financial support. The pharmaceutical industry typically involves long lifecycles and substantial investments, posing challenges when navigating capital markets. When evaluating a target company, investors prioritize assessing the sustainability of its products in the market and the company’s overall profitability.

How have you observed China taking a stronger stance on environmental protection?

China has faced criticism for environmental negligence, prompting the government to enact stringent regulations for air quality conservation. The introduction of the environmental protection tax law is a necessary measure, particularly in combating pollution hazards that contribute to lung-related diseases in China. Enforcement of these regulations has made it more challenging for pharmaceutical and medical device manufacturers producing low-quality products to continue operations. This emphasis on environmental protection is expected to promote higher industry standards and drive improvements in the overall environmental performance of the life sciences sector.