As CPhI China , one of the largest international events for the pharma industry, is unfolding at the Shanghai New International Expo Centre (SNIEC), Erik Heemskerk, Brand Director for CPhI China, in an e-mail interview with AD Pradeep Kumar, gives an overview of the Chinese pharmaceutical industry, pharma ingredients scenario, CPhI China 2013 event and the outcome of the last year's event.

What are your views on the Chinese pharmaceutical industry?
China is a rapidly growing country and a recent Deloitte report predicts the domestic healthcare markets will grow at 20 per cent or more for the next five years. It’s an exciting market to be part of in terms of domestic production alone. Another additional pull factor has been the improving drug patent protection and as a result foreign companies are increasingly looking for partnerships and facilities in this market to make use of the rising demand.

The Chinese Government has also been a great help in continuing to fund R&D projects that many other countries have let slip as funding from traditional financial markets has been removed in light of the global economic slowdown. However, the main growth area in the Chinese market will be led by its exports over the next few years as regulatory standards begin to mirror those in the west, with price competitive exports of both API and generics driving growth.

What are your views on China's pharma ingredients sector?
The Chinese pharmaceutical ingredients market is undergoing a great deal of change and akin to some of the broader changes taking place within the Indian market with both seeing huge levels of growth and development. Perhaps the main differences currently between the two markets is an increased focus on API production in China, rather than finished dosages and generics in India. However, over the next few years we are likely to see China growing in both areas, and already we have seen an aggressive increase in the number of cGMP facilities matching up to western and FDA standards.

What are the novel features of CPhI China this year?
With a view to enhancing the customer experience and ROI value, we have added high value conferences and live laboratory showcases. The Show Daily is being re-launched at this year’s event to assist attendees in staying on the pulse of the day’s events, topical news and product launches, alongside in-depth features and valuable insight across the Chinese pharma market.

Additionally, we have launched a mobile application – available in both Mandarin and English - that keeps attendees connected with all information they need instantly. This application has been designed to free-up the event experience and is a convenient tool to not only navigate around the exhibition, but also to arrange and manage meetings on the go. One final point for this year is an increased focus on R&D with LABWorld, BioPharma and ICSE all contained in one hall.

What is the nature of the visitors profile and expected participation?
CPhI China 2013 will be host to more than 2,500 exhibitors, and over 30,000 visitors expected from more than 100 countries.

CPhI China is attracting more and more visitors each year. They include specialists from general management, marketing & sales, purchasing, production, quality control, engineering and R&D.

On average, over 70 per cent of all visitors have purchasing power. Decision-makers from all sectors of the pharmaceutical industry will be searching for new products, services and deals.

The top five departments which will be present at CPhI China 2013 are : Marketing/ sales, general management (CEO /President/ Director/ GM), business development, purchasing and pharmaceutical development.

What are your comments on the progress of the co-located events ?
Collectively, these events provide attendees with exposure to packaging suppliers, innovative biopharm companies & pharmaceutical manufacturing- a largely growing and thriving sector in China.

With the Chinese government remaining committed to funding the biotechnology industry, BioPh will provide invaluable opportunities to network and form partnerships with strong biopharma companies within China, so this year’s BioPh event will undoubtedly contribute to the progression of the ever expanding biopharma market.

As China witnesses growing technology and engineering skills and a rapidly expanding pharmaceutical market, CPhI China’s co-located events provide the ideal platform to generate industry collaborations across multiple areas of the industry – whether attending as a supplier, buyer, investor or researcher.

What is the nature of Indian participation in the event?
At this year’s event, and in light of the new trade memorandum between the two countries, we have seen some of India’s largest and most innovative companies (32 in total) taking up space at the event, with prominent industry businesses including Alchem International Ltd, Supriya Lifescience Ltd, Granules India Limited and Hetero Drugs Limited (Nanjing Office).

What are your views on the problems and prospects of active ingredients trade between India and China?
This is an interesting dilemma and it’s an area to watch closely over the next few years, as overall China is perceived has having a cheaper production base than India. Yet despite this, we have seen several Indian companies exporting to the Chinese market. However, overall I think we will see an increasing number of Chinese API manufacturers exporting to India with its more advanced finished dosages and generics sites. The agreement on trade that was recently signed between the two countries should also help increase access in both directions – as at the moment access to India is seen as easier for Chinese companies than vice versa, with clearance taking around a year as opposed to 3-5 years.

What was the outcome of the last year's event?
Last year’s event was a huge success and saw over 29,000 people attend - up 2000 on the previous year, with our exhibitors reporting better sales and a positive outlook for 2013. China, like India, really is a hotbed of growth in the pharma sector and CPhI China has grown to become the essential meeting point for exchanging ideas, contacts and information in the region – we are seen by both exhibitors and attendees as an integral part of this dynamic region’s growth.

What are your views on the progress of CPhI China events in general?
CPhI China’s growth reflects the increased significance of China in the overall global pharmaceutical market, and in fact the Chinese event is now beginning to rival that of CPhI Worldwide in terms of size and attendee numbers. Over the next few years we are likely to see sustained growth as domestic Chinese companies increasingly export and foreign investors increasingly look to exploit the potential new revenue streams.