thereview,smoothedandextrapolatedinto2016.ThetotalpharmaceuticalmarketisforecasttogrowataCAGRof16.1%(±4.0%)duringtheperiod2011-2016.Keypositiveforecastdrivers:•Continuedgovernmentfocusonhealthcareunderthe12thFive-YearPlanfor2011-2015,meaningincreasedgovernmentinvestmentinhealthcareservicesandthehealthcareinfrastructure.•ratethenextlevelofprovincialcitieswhichofferstrongergrowthprospectsinthelightofrapideconomic,infrastructureandhealthcareexpendituregrowth.Keynegativeforecastdrivers:•RepeatedroundsofpricecutsfordrugslistedontheNRDL,resultinginastep-wisereductionofthepricedifferentialbetweenoff-patentoriginatorbrandsandlocalgenerics.•Expansionofbudgetandvolumecontrolsinhospitalsinmajorcities.•Regulationstocurbantibioticprescribing.©2012IMSHealthIncorporatedoritsaffiliates.Allrightsreserved.9