Prognosis
Five Stocks to Watch as China Breaks Into Global Drug Market
- Chinese government wants to build homegrown pharma champions
- Problems at small vaccine maker brought drug stocks tumbling
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Many of China’s most innovative drug firms have ambitions to be global leaders in the next generation of medicines for cancer, hepatitis and other diseases. While the industry is still at a nascent stage, more companies are attempting to develop their own blockbuster therapies.
The MSCI China Health Care Index surged to a 14-year high in June and then started tumbling, a correction that gained momentum in July after a small local vaccine producer, Changsheng Bio-Technology Co., was found to have sold substandard vaccines. President Xi Jinping’s government has pledged more scrutiny of the entire industry.