The head of Swiss Pharmaceutical giant Novartis Joe Jimenez said on Wednesday that demand for pharmaceutical products in China will continue to outshine Europe and the US despite the ongoing economic slowdown and other critical factors like falling drug prices and regulatory challenges.  

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"China has the potential over the next 10 years to become a major force in global pharma," Jimenez told the Financial Times. He was speaking at the opening ceremony of Novartis' new state-of-the-art research facility in Shanghai. This is the company's third research and development center alongside its research centers in Basel and Cambridge.     

Jimenez said Novartis and other pharmaceutical companies would benefit from China's aging demographics. China is set to have one of highest 'old age' population in the world.

"Within 35 years there are going to be 200m more Chinese over the age of 65 than there are now ... so there will be 340m people over the age of 65. That's similar to the total population of the US," Jimenez said.

Jimenez also cited China's burgeoning middle class as one of the key factors that will continue to propel demand for pharmaceutical products. Analysts say that Novartis chief's encouraging statement clearly demonstrates the resilience of China's pharmaceutical market.

However, new tough regulatory rules and rising regulatory costs continue to cast a shadow on pharmaceutical companies in China. In 2014, GlaxoSmithKline was fined Rmb3bn ($488m) for non-compliance with regulatory laws.

Multinational pharmaceutical companies in China have reportedly altered their marketing practices to avoid facing regulatory penalties.

Tagschina, Novartis, Joe Jimenez, Gsk Glaxosmithkline