Abstract
With the evolution of chemical and biological technology, the pharmaceutical industry has split into two parts by originality standard. Generally, big business prefers creation while the small ones will participate by being copyists to the pioneer. Until now, the gambling game between the two opposite groups is a great magnet for researchers all over the world. This paper starts with the analysis of two threats which were facing by transnational pharmaceutical corporations in China. One kind is blooming patent expiration of blockbuster drugs, the other kind is tightening policy stirred by China’s medical reform. The statistical study demonstrates so far in China the patent cliff has not shaped, meanwhile, price reduction, which owes to policy has loomed. With a deep view of specialists, this paper deploys SWOT and policy trend analysis based on issues of medical care insurance management and cost controlling policy. It is predictable that more tightening policies will be published in China and cripple the benefit of transnational pharmaceutical corporations. Subsequently, with the basic pharmaceutical life cycle theory, a picture of advanced curve suitable for China is drawn, to illustrate a series of time-ordered management strategies for transnational pharmaceutical corporations in China.