At the National People’s Congress conference, the State Council revealed that China Food and Drug Administration (CFDA), General Administration of Quality Supervision, Inspection and Quarantine of the People’s Republic of China (AQSIQ) and State Administration for Industry & Commerce of the People’s Republic of China (SAIC) would merge, China’s regulatory news and database, Chemlinked revealed on 13th March 2018.
As part of this consolidation, the simultaneous formation of the National Market Supervision and Administration Bureau will replace these three regulatory authorities. As a result, going forward, all cosmetics will be managed and handled by the National Market Supervision and Administration Bureau.
With the regulatory and governance landscape in China getting a makeover, we take a look at the Asian health care industry.
Health care influence
Health care mergers and acquisitions in 2018 are expected to show a healthy increase compared to 2017, which was dogged by the uncertain and volatile environment created in the aftermath of Brexit, China's regulatory changes and India's pricing modifications, BioSpectrum Asia reported.
Approximately $30 bn (€24.4 bn) was spent in M&A deals in Asia Pacific in 2017, with China, India and Australia leading health care collaborations — a sector which influences cosmetics trends and developments.
Typically, three-quarters of M&A deals made were below the $100 mn (€81.3 mn) mark, while excluding Japan, the total region saw a total of 254 M&A transactions for the healthcare sector in 2017.
“We saw some big ticket deals out of China as well as a good number of smaller deals across Asia Pacific. There was a good mix of private equity and corporate deals last year, with the largest coming from India, China and Australia,” Sriharsha Sarkar, Principal, Consulting services, IQVIA, Asia Pacific, stated.
Of the top 10 high-valued M&As in 2017, three of these revolved around Chinese companies, resulting from an increase in technological innovations, along with the demand for government incentives relating to high-quality health care. Concentrating on health, China moves forward with its 'Healthy China 2030' programme, encouraging fresh initiatives.
In 2017, India delivered poor M&A deals in the health care space. Pricing controls, short-term policy measures, the demonetisation of certain currency notes, and the introduction of the goods and services tax (GST) led to this lower M&A rate.
“China will continue to be the main contributor to Life Sciences M&A in APAC followed by Japan and India,” Sathyanath added.
“Complex regulations and restrictions for foreign ownership in many APAC countries are limiting the number of cross-border transactions. Hence, many global companies are forming strategic partnerships with regional and local players. Greater China has consistently contributed to more than half of the deal volume, followed by Japan, India and South Korea,” concluded Sathyanath.