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San Francisco, CA (PRWEB) December 16, 2012
In 2012, the Medical Research industry in China is expected to generate $6.8 billion. Annualized growth over the past five years period has been about 14.3%. Over half of industry revenue is derived from government funding.
The Medical Research industry is beginning to mature and competition for government funds and private funds has increased. IBISWorld estimates that profitability is low in 2012 due to the high costs for medical research and commercialization difficulties. Profitability varies among different participants in the industry, however. Biotechnology companies tend to be profitable, while medical research institutes are more likely to suffer losses.
In 2012, the combined market share of the top four companies in the Medical Research industry in China Chinese Academy of Sciences, WuXi AppTec, Shanghai Institute of Pharmaceutical Industry, and the Academy of Military Medical Sciences is estimated at 19.7%. This low concentration level is due to the existence of a large number of non-profit medical research institutions and small-scale biotechnology companies. Non-profit medical research institutions rely heavily on government funding.