The Confederation of Indian Pharmaceutical Industries (CIPI-ssi) and the China Pharmaceutical Manufacturers Association (CPMA) will soon sign a Memorandum of Understanding (MoU) to boost bilateral business relations in the field of pharmaceuticals.

The MoU will involve efforts to increase investment in both the countries, trade delegations to India and vice versa, joint ventures, joint research possibilities and technology transfer, mutual market development etc. The draft is being readied and the two associations will soon finalize the MoU, T S Jaishankar, chairman of CIPI told Pharmabiz.

He said the development follows his trip to China to attend the just concluded API China, organized by Reed Sinopharma Exhibitions. The CIPI chairman was an invited speaker to the conference attended by the cream of pharmaceutical industry professionals in China and top-level leaders of CPMA.

"The Chinese are keen to know the progress India made in the field of drugs, especially drug research. Though China has huge API capacities, most are underutilized. Further, they had neglected the importance of drug research, which is now worrying them. Our MoU will involve mutually beneficial co-operation in the areas where India and China have strength," he said.

While forty per cent of the regulatory filings for bulk drugs are from India, the Chinese account for only 15 per cent. More than 80 per cent of the prescription drug market in China is controlled by multinational companies, and not the Chinese companies. "This is one area where the Indian companies can tap China. Now our drug relations with China are only in API sourcing. While some Indian companies have set up joint ventures in China, the Chinese companies are yet to come to India," he noted.