It seems that China is all set to shine in the pharmaceutical frontier. With the return of native scientists from abroad, trained staff, investment in research facilities by multinational companies, growth of contract research companies in Shanghai and support from the government, the Chinese pharmaceutical industry is all set to grab a lion's share of the global pharmaceutical market.
In what can be termed as advantage China, Chinese scientists, who have spent decades in abroad, are returning in large numbers to home country to inject world-class practices into its pharmaceutical business. As a result, Chinese pharmaceutical industry, already known for its active pharmaceutical ingredients (APIs) and bulk drugs, is gradually shifting focus to research and development activities.
However, the return of the natives is only one among the host of favouring factors that continue to transform the face of the Chinese pharmaceutical industry. On its part, the Chinese Government has been helping a great deal in terms of policies to support innovative research in the country. It has helped China to turn to preclinical services, development of drug leads and collection of animal data for promising drug candidates.
While domestic players like Bicoll Biotechnology and Medicilon have made reasonable impact on its R&D scenario, attracted by low cost environment, multinational companies like Novartis, Roche and AztraZeneca are all set to establish their presence in the country. While Roche already has an R&D facility in Shanghai, Novartis and AztraZeneca are in the process of setting up their respective research plants in China. Analysts believe that these multinational companies will enhance the country's capabilities in R&D.
Notwithstanding the new developments, APIs and intermediates continue to dominate the Chinese pharmaceutical market. China is known for its active pharmaceutical ingredients for prescription and over the counter medicines. The demand for APIs is on the rise as most of the APIs meet current good manufacturing practices. Also, as China is expected to be more vigilant on Intellectual Property Rights Protection pursuant to its entry into the World Trade Organisation in 2001, multinational companies like Pfizer and Alpharma are turning to China to outsource some of their APIs.
Though currently limited to basic APIs and intermediate production, China is expected to become a hot destination for more complex, on patent API and biologics contract manufacturing in the long run. As of now, the Chinese drug ingredient manufacturers are raising production capabilities to make it big in the global market.
The country's APIs market makes up significant part of international medical trade, accounting for more than 50 per cent of total medical exports. China has over a thousand pharmaceutical companies focusing on APIs, exporting numerous active pharmaceutical ingredients to all over the world. If we are to go by statistics, Chinese pharmaceutical industry accounts for exports of 70 per cent of penicillin, 50 per cent of aspirin and 35 per cent of paracetamol active pharmaceutical ingredients to the global market.
"The Chinese API business is driven by strong R&D ability, powerful technical supporting system and state-of-the-art production facilities and equipments," said an industrial expert. The major players in the APIs business include Hengdian Group, located south of Shanghai, Zhejiang Shanghai Pharmaceutical Co and Zhejiang Hisun Pharmaceutical.
The country is noted for low cost and large-scale production of APIs. Presently, the EU, US, India and Japan together form 60 per cent of China's export market. While the country exports bulk drugs like vitamins, amino acids and sweet taste agent to the US, it exports vitamins and antibiotics to Europe. Though a tough competitor, China exports antibiotics and hormone intermediates to India, while it sells enzymes and primary amino acids to Japan. According to market pundits Chinese bulk drug market is expected to grow further in terms of profit, advanced technology application and generics.
With every segment of the pharmaceutical industry is poised to make a big leap forward, China is projected to become the fifth largest drug market in the world by 2010. At present, Chinese pharmaceutical market holds 22 per cent of global market share with annual growth rate exceeding 15 per cent. While the country's annual output stands at 800 thousand tons, its export turnover is at US $600 million, according to sources.
The big strides made by China in the pharmaceutical sector is not known to all nations or multinational companies. Well aware of this fact, Sinopharm and Reed Exhibitions have come together to host one of the mega pharmaceutical events in China - API China - to appraise global market of its progress in the fields of bulk pharmaceuticals, fine chemicals and intermediates, excipients and drug formulation, pharmaceutical packaging material and machinery and food and cosmetic additives.
API China, also known as China International Pharmaceutical Ingredients Fair, is the country's leading exhibition for the pharmaceutical manufacturing sector. The event is being supported by Ministry of Commerce of the People's Republic of China, People's Government of Nanjing Municipality, China Pharmaceutical Industry Association and China Pharmaceutical Packaging Association.
58th edition of API China will be held at Nanjing International Exhibition Centre, China, from May 15 to 17, 2007. The three-day exhibition cum conference event will familiarize the complete spectrum of domestic pharmaceutical manufacturing products, including raw material, fine chemical, intermediate, ingredients, processing machinery and packaging machinery to the international buyers.
The event will also help one to source the whole spectrum of bulk pharmaceuticals, pharma chemicals and allied industrial products, meet all major Chinese domestic pharmaceutical ingredients manufacturers, importers and exporters and learn the latest Chinese pharmaceutical industry and market developments, the organizers said.
API China will also act as a platform where international buyers can meet and interact with Asian sellers especially Chinese ingredients manufacturers. The event will feature about 1,195 manufacturers, 35 thousand professional visitors and 1,772 booths, the organizers added.
As usual, Interphex China would also be held along side API China. A three-day event, it will exhibit packaging machinery and materials, processing machinery and services, sterilization systems, filtration/purification equipment, air conditioners, dust collection equipment, clean room equipment, isolators, wipers, drying equipment, emulsifiers, granulators, homogenizers, classifiers, separators, process inspection and testing detectors, testing devices, filling equipment, clinical research, IT-solutions for pharmaceutical manufacturing and logistics.