The pharmaceutical industry have showed an increase in sales growth rates in the recent past years and due to some factor this tend will continue in future. First, due to recent development in science and technology, including health care industry, Life expectancy has also increased in developed economy. As proportion of elderly people grows it will help in further growth of demand for healthcare products.
Although developing countries have a small portion of worlds pharmaceutical sales, these countries have a significant potential for the pharmaceutical manufacturing industry in the future. As a result, of which the manufacturing cost in developing countries will reduce, thus helping the industry to sell medicines at a low price. Fastest growing economy in Asia and Europe tells that an increase solvency of population will make these market more attractive for big player in the pharmaceutical industry.
Legislation system in those regions, especially in Asia and Europe are also helping in patent protection issues. The contribution of pharmaceutical industry is to turn fundamental research into innovative treatments which are widely available and easily assessable. The development of new medicines has helped us in fighting against previously fatal diseases (e. g. smallpox, syphilis, diphtheria, tuberculosis and polio).
It has also made progress in fighting with diseases including HIV-AIDS, Cancer, Nervous disorders, ulcers, hypertension, stomach and Asthma. There are rebates at every step of distribution chain. There are also various drugs list which exists at the same time and these lists can be changed by local government which makes it difficult for manufacturers to survive and thus this increases corruption in Chinese economy. Accounting standards: China’s accounting standards are different from international standards as they follow their own standards (CAS).