The pharmaceutical industry in China is worth over $110 billion, and ranked as the world’s second largest pharmaceutical market, after the US. When it comes to pharmaceutical sales, China’s pharmaceutical industry jumped from $21 billion sales in 2008 to over $50 billion in 2012. Several leading pharmaceutical companies are currently dominating the market in China over the recent years.

Here are the top Pharmaceutical Companies in China:

1.    Shanghai Pharmaceuticals: a company listed on both the Shanghai and Hong Kong exchanges, combines a major pharmaceutical operation with one of China's two largest distribution networks. Their business covers pharmaceutical R&D, manufacturing, distribution and retailing. In 2015, the Company had reportedly the business revenues of RMB 105.5 billion. It also owns over 1,700 drug stores in total. It allocates 5.4% of its manufacturing revenues to R&D, and produces western style drugs for critical needs, along with modern TCM products and medical devices.

2.    China National Pharmaceutical Group/Sinopharm is a state-owned company. CNPG comprises 22 wholly-owned subsidiaries, including three Shanghai-listed companies, Beijing Tiantan Biological Products Corporation Limited (BTBP), China National Medicines Co. (CNCM) and Shenzhen Accord Pharmaceutical Co. CNPG has a wide-ranging set of companies that run the gamut from generic drug enterprises to research-based innovative entities.

3.    Jiangsu Hengrui Medicine established in 1970 and headquartered in Lianyungang, Jiangsu Province, is a leader in China’s innovative medicine sector. The company devotes 10% of its $1.7 billion in revenues to R&D. In 2015, Hengrui started construction on a $137 million biologic drug manufacturing facility in Suzhou. It establishes partnerships and signs in-licensing to acquire additional products, including biosimilars. Hengrui Medicine is the first China pharmaceutical enterprise to sell domestic injectable products overseas to Europe, US, and Japan. The company's 2016 revenues were $1.7 billion and its market cap $20 billion, a high multiple of 12X sales.

4.    Shanghai Fosun Pharmaceutical (Group) is a part of Fosun Industries, one of China's major conglomerates. Through its subsidiaries, the Company manufactures genetic medicines, Chinese traditional medicines, diagnostic products, and medical instruments, provides technology, marketing, and advertising services, as well as invests in import and export trading. Last year, the company agreed to pay $1.3 billion for an 86% in India's Gland Pharma, a maker of small volume parenteral drugs. It was the largest ever China-India pharma deal by several orders of magnitude. In 2016, the company produced revenues of $2.3 billion and has a market cap of $10.6 billion.

5.    Huadong Medicine makes drugs that include western style and TCM products. It also has a distribution system in China's eastern coastal region. The company's products include immunosuppressive preparations, diabetes drugs, drugs for digestive system diseases, blood drugs, drugs for bone injuries and active pharmaceutical ingredients. The company also makes medical devices for domestic and overseas markets. In 2016, Huadong reported revenues of $3.4 billion and a market cap of $6.7 billion.

6.    Yunnan Baiyao Group Co.,Ltd is a one of the oldest traditional Chinese medicine companies originally founded in 1902. The majority of its products are Traditional Chinese Medicines, along with APIs for chemical products. The company also has a distribution operation. In 2016, Baiyao reported revenues of $3.3 billion, and its market capitalization is currently $13.7 billion.

7.    Guangzhou Pharmaceutical Holdings makes TCM and western medicines. It produces anti-toxic and diabetes drugs along with medicines for arthritis and gastric diseases. In 2007, Guangzhou Pharmaceutical Corporation, a distribution subsidiary, accepted $50 million from Alliance Boots for a 50% share in its China distribution business. Guangzhou Pharmaceutical Corporation claims to be the largest JV in China and also the third largest drug distributor.  

8. China Meheco is a Beijing enterprise listed on the Shanghai Stock Exchange, is controlled by China General Technology (Group) Holding, a state-owned company. In the international market, it imports and exports pharmaceutical chemicals and related products along with China-made medical equipment. It also offers TCM and herbal products in China. Its interests span the entire industry chain, from R&D, cultivation and processing, manufacturing, distribution, logistics to international trading, academic promotion and technical service. Its most recent 12-month revenues were $470 million, and its market cap was $3.8 billion.

9. Harbin Pharmaceutical Group is a state-controlled Sino-foreign equity joint venture, which operates through at least nine subsidiaries. Its major product is antibiotics, along with small-molecular drug preparations, OTC and healthcare products, modern Chinese medicines and biopharmaceuticals.

10. Kangmei Pharmaceutical founded in 1997 and headquartered in Puning, China, is a significant maker of TCM products. It also produces antibiotics and other western style drugs. The company generated $3.4 million of revenues in the most recent twelve months; its market capitalization is $15 billion.