Whitepaper

Much Ado About Nothing

Market Research

 

Examining the future of the global pharma industry 

Trade relations between the two superpowers in pharma are deeper than they appear to be. With a lot of investments at stake for US pharma big weights, new regulations (such as Protecting our Pharmaceutical Supply Chain from China Act of 2020) may create hurdles in the long term but not in 2022. Although there are negative sentiments in the market, debates in the political arena, and social media outcry due to COVID-19 and its origin, nothing is really going to change in 2022.

Based on SG Analytics’ research, the Chinese companies have started taking an alternate route and investing in start-ups in the US. In fact, in 2020, Chinese FDI in the US stood at the third position in pharma med-devices at $625 million despite the scrutiny tied to FIRRMA (Foreign Investment Risk Review Modernization Act).

Key Points:

  • According to a new Pew Research Center survey in Q1 2021, 9 of 10 US adults (89%) considered China a competitor or enemy rather than a partner during the pandemic.
  • Still, in 2020, Chinese FDI in the US stood at the third position in pharma med-devices at $625 million despite the scrutiny tied to FIRRMA (Foreign Investment Risk Review Modernization Act).
  • This perception-based negativity will not impact the market. “Go China and No China” will soon be replaced by “No clarity over China.”

To know more...




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