| By Daisy Zhang, Asia Manufacturing Pharma |
| Friday, 23 May 2008 |
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In recent years, a series of challenges, including the expiration of branded drug patents and increasing research and development costs, have forced transnational pharmaceutical producers to cut costs by outsourcing their |
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manufacturing and R&D to developing countries, including China, creating an enormous pharmaceutical outsourcing market.
U.S.-based Pfizer, one of the world’s largest pharmaceutical manufacturers, has been optimizing its global operations through an extensive restructuring over the last three years. The company plans to close or sell 45 of its 93 plants |
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worldwide by the end of this year.
In addition, Pfizer will outsource approximately 17 per cent of its products by that time, compared with 10 per cent three years ago. The company is expected to increase that figure substantially to 30 per cent by 2010. Statistics show that the global pharmaceutical outsourcing business is currently growing at an average annual rate of 30 per cent.
In light of the pharmaceutical outsourcing market boom worldwide, China’s pharmaceutical firms are seeking to acquire international certifications, in an effort to win production and R&D orders from foreign companies.
The pharmaceutical outsourcing business encompasses the outsourcing of pharmaceutical intermediates, active pharmaceutical |
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ingredients (APIs) and pharmaceutical preparations. Leveraging their rich experience in the production of pharmaceutical intermediates and non-patent APIs, as well as the cost advantage, China’s pharmaceutical firms have lured a number of foreign heavyweights. The country’s pharmaceutical producers are expected to make a great stride toward the goal of globalization by receiving outsourcing orders, industry analysts say.
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China, an increasingly important contract research outsourcing destination
Demand for specialty APIs growing as branded drugs come off patent |
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