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$183 Million in Funding Set to Transform China’s Diagnostic Market
The Chinese government is spending money and writing policy to help local companies catch up with Western counterparts in sensors and diagnostics, says Lux Research
BOSTON, MA – March 5, 2013 – A sharply aging population with unmet medical needs is driving China’s government to invest in the rapid development of innovative sensing technologies, and emerging Chinese firms are gathering to challenge the more experienced Western players in the sensor and diagnostic market, says Lux Research.
The domestic industry today is relatively immature, with the current market structure dominated by Western companies and multinationals. However, the government is attempting to jump start a homegrown industry, with stated goals in the 12th Five Year Plan (FYP) of improving overall healthcare, especially in rural areas, and increasing funding in a number of key sensing and diagnostic research areas. In the 2011-2012 funding period, $82.9 million was awarded in molecular, biochemical, immunological, and physical diagnostic spaces, and China will spend an additional $103 million on basic research in the sector during the 12th FYP.
“A wide variety of innovative technologies are being developed at the university and research institute levels that are on par with research in more developed nations,” said Zhihao Yu, Lux Research Analyst and the lead author of the report titled, “The Emerging Diagnostic Landscape in China.” “Over the next three to five years, biologics-based diagnostics will catch up and offer strong domestic options to today’s imported Western technology.”
Lux Research analysts closely studied the diagnostic landscape in China and the potential impact from policy. Among their findings:
The report, titled “The Emerging Diagnostic Landscape in China,” is part of the Lux Research China BioPharma Intelligence service.