The Chinese market for diabetes drugs is around CNY 15 billion annually and it has been growing at about 5% rate in the past few years, according to local newspaper Pharmaceutical Economy. Data from the Chinese Diabetes Association suggest that the country’s diabetes prevalence rate is 2.4% with 31 million diabetes patients.

A hospital drug purchase audit covering 100 hospitals in Tianjin shows the total purchase value of diabetes drugs by these hospitals in the first half of 2007 was nearly CNY 35 million, among the total Western medicines accounted for 86% while TCMs represented the rest 14%. Insulin products represented 44% of all diabetes hospital drug sales in the period.

The leading five suppliers of diabetes drugs to Tianjin hospitals in the first half of 2007 accounted for 81% of the total, and four out of them were MNCs. The following table shows the leading five suppliers and their market shares in the period.

Leading Five Suppliers of Diabetes Drugs to Tianjin Hospitals in 1H/2007

Source: Pharmaceutical Economy

Hospital sales of diabetes drugs in Tianjin is dominated by grade III hospitals which represented 68% in the first half of 2007, while grade II and grade I hospitals accounted 22% and 10% respectively. The leading five hospitals and their market shares are given in the following table:

Leading Five Hospitals by Diabetes Drugs Sales in 1H/2007

Source: Pharmaceutical Economy

The medical expenditure of per diabetes inpatient for each hospital enrollment is CNY 17,912 in 2007, among which drug expenses account for 33%. In comparison, the national average medical expenditure per inpatient for each hospital enrollment is CNY 4,875, among which drug expenses account for 42%.