(Yicai Global) Dec. 19 -- Investment in China's pharmaceutical industry will continue to rise next year, with fixed asset investment expected to jump 10 percent to CNY678.2 billion (USD98.3 billion), according to a new report.

Three factors will drive the investment, the National Information Center said in a sector-specific development report published recently. They are: mergers and acquisitions pushed by the government's reform policy; increased research and development by listed firms to capture market share; and, a further opening of China's medical sector, which will boost foreign investors' confidence.

Profit at medical businesses climbed 11.5 percent to CNY230.6 billion (USD33.4 billion) in the nine months through September, though the growth rate slowed 6.9 points. Aided by government regulation of medical expenses, adjustments of some value-added tax and increases in R&D spending, this trend will continue next year though with growth expected to cool to about 6 percent. 

Innovative drugs, meanwhile, have entered a new development stage, ushering in a preliminary harvest. Since the China Food and Drug Administration issued a priority review policy in February 2016, 34 batches of 710 new drug applications have been included for review as of October, with 80 approved for production, the report added.

Based on a priority review, new drugs take just under nine months on average from being publicized to being approved. China will make new breakthroughs in innovative drugs, the report said, urging investors to support R&D and pay attention to leading listed drug companies.