Healthcare spending may double

China's healthcare spending may nearly double in the next three years and pharmaceutical merger and acquisition activities are set to grow in the world's second largest market for such deals, an industry report said yesterday.

By 2015, healthcare expenditure on pharmaceuticals, medical devices, distribution, hospitals, pharmacies and insurance will account for 10 percent of the country's gross domestic product, an increase from nearly 6 percent by the end of 2012, according to the report.

Norbert Meyring, head of KPMG Life Science in China and Asia-Pacific, attributed the increase in spending to robust economic growth, the rising middle class as well as government support, urbanization demand and people's increasing awareness for quality healthcare.

KPMG predicted pharmaceutical M&A activities in China to grow along with the expansion in the market.

Between 2011 and 2012, China registered 132 pharmaceuticals transactions worth US$5.2 billion, surpassing Germany and Japan by both deal number and value, and only lagging the United States as the second largest pharmaceutical M&A market.