From Yahoo Finance: 2025-03-26 11:06:00

Multinational pharmaceutical companies in China’s vaccine market face challenges due to regulatory scrutiny, domestic competition, and shifting consumer behaviors. Sales for Gardasil and Shingrix have dropped significantly as domestic manufacturers offer lower-cost alternatives. The anti-corruption campaign in China has also impacted foreign companies like AstraZeneca. Foreign vaccine makers are now forced to rethink their strategies in a changing market landscape.

In response to market headwinds, MSD announced a 17% decrease in Gardasil sales in Q2 2024, attributing it to price competition and anti-corruption crackdown. GSK’s distribution deal for Shingrix was restructured with reduced annual volumes. China’s anti-corruption campaign has led to more stringent regulations and increased scrutiny on foreign companies in the healthcare sector.

The anti-corruption campaign in China has slowed down hospital procurement and impacted pharma sales. However, the campaign is not specifically targeting MNCs, aiming to eliminate corruption. Chinese consumers have long had issues with mistrust due to past vaccine scandals. Domestic vaccine companies are challenging MNCs with lower-cost alternatives, reshaping the competitive landscape.

Changing consumer behavior is also affecting the market dynamics. Initial surge in demand for vaccines is normalizing with stable supply and affordable alternatives. The market size is declining as pent-up demand is depleted. Factors like stigma around cervical cancer and HPV play a role in shaping consumer attitudes towards vaccines. China prioritizes boosting domestic capability and market. The association between sexual behaviors and traditional societal norms in China impacts HPV vaccine uptake, particularly in rural areas. Despite some provinces offering free HPV vaccination programs, uptake remains low due to social barriers. Local governments are incorporating HPV vaccines into free vaccination programs, affecting the market share of self-paid products. China’s economic slowdown also impacts consumer spending on vaccines not covered by the national immunization program. Foreign vaccine manufacturers face challenges in China due to regulatory enforcement, domestic competition, and changing consumer dynamics. Building government relations is crucial for gaining insights into regulatory changes in China’s vaccine market. The anti-corruption campaign in China may be a long-term shift, impacting the pharmaceutical industry. As China prioritizes its domestic pharmaceutical industry, foreign vaccine manufacturers must adapt to the increasingly complex and competitive market.



Read more at Yahoo Finance: Big pharma faces headwinds in China as vaccine sales decline