Report: International Pharma Shows Confidence in China

July 5, 2016

International-domestic pharma partnerships will drive next wave of growth in China, according to new CPhI report on China.

A new report on the Chinese pharma economy shows confidence of international companies planning to expand in the Chinese market, as well as shifts in market forces and government influence. The CPhI Pharma Insights China 2016 Market Report, produced by CPhI Worldwide, is based on research collected from 223 international and 71 domestic companies of the Chinese pharmaceutical industry.

Of the international companies surveyed, 85% believe that China is set to have the fastest growing biologics sector over the next decade and 65% predict patented new chemical entities (NCEs) will be discovered and developed within the country within 5 years. The driving force behind these findings is the growing biotechnology and R&D industry, which is supported by the Chinese government, according to the report. 

Nearly three-quarters of international companies are looking to ‘increase or initiate’ partnerships with local companies, the report finds.; 90% of domestic companies are also searching for international partners.

More than half of the domestic respondents believe the Chinese manufacturing sector will advance manufacturing capabilities in complex formulations and biologics to levels comparable to those in the West within the next 3–5 years. More than 60% of companies surveyed report that they are already implementing GMP standards; 40% are using quality by design, 40% are using continuous improvement, and nearly 20% are using either Six Sigma or OPEX. 

More than 50% of the respondents believe commercial manufacturing can be competently outsourced within China. Moreover, nearly 30% believe both contract manufacturing activity and clinical drug supply and formulation services can be competently undertaken by Chinese companies. More than one-quarter (27%) believe US and European drug supply can also be completed by manufacturers within the country. 

The report concludes that the chief driving force behind rising standards within the Chinese market is an increased awareness among domestic consumers and the desire for more tightly regulated, higher-quality drugs.

The report also concludes that in five years, the Chinese pharma market will look very different; generic drugs and APIs will still be exported in large numbers, but there will also be a well-established biologics and research industry, with multinational CMOs.

The report is available for download.

CPhI and BioPharm International are UBM plc brands.