China is the largest producer of pharmaceutical raw materials in the world. China is a big producer of chemical APIs, capable of producing about 1,600 varieties of APIs. China ranks first worldwide in output of several bulk APIs including penicillins, vitamins and antipyretic analgesics, and holds a significant share of the featured APIs like statins, prils, sartans in the world.
Chinese pharma companies over the years have reinforced their production capabilities with support from the government initiatives, better infrastructure and lenient safety regulations. Along with the USA, Europe and India’s dependence on China for antibiotics and other medicines has been steadily rising. Some leading Chinese pharma companies that historically focused on generics have started building capabilities and making investments in innovative drugs.
Made in China 2025
As part of Beijing’s “Made in China 2025” industry plan, President Xi Jinping identified the pharmaceutical sector as one to push, with the focus on innovation and homegrown research and development. Chinese pharmaceutical manufacturing is concentrated in two geographic regions: Eastern China and Southern China. China is on its way to becoming the major global player in drug development, commercialization and distribution. Even with China’s current economic slowdown and trade war with the USA, the annual growth rate of pharmaceuticals is quite impressive. It is projected to grow at up to 9% through 2020.
Possibilities of Sourcing Chinese Pharma Products–
China has quietly become a surprisingly important supplier to the global pharmaceutical industry. The immense potential of pharmaceutical distribution industry has attracted the inrush of capital in recent years, and mergers and acquisitions occurred frequently. Currently, many pharmaceutical ingredients are not manufactured anywhere else but China. The reform has already brought significant improvements. Many of the drugs that Americans depend upon, including birth control pills, antibiotics like penicillin, vitamin C and even cancer drugs, are made in China. This country is the largest exporter of ciprofloxacin, an anthrax antidote. The possibilities of sourcing pharma products are hugely profitable.
Over the last couple of years, Chinese government has enormously upgraded pharma industry. China pharmaceutical R&D has picked up speed over the past few years, spurred by several factors. Chinese government introduced a round of policies and measures, including drug control, adjuvant drug monitoring, two-votes system, drug price negotiation, pay by diseases, etc. China will continue to benefit from the significant investment from the innovative pharmaceutical industry.