India Pharmaceutical Companies Collectively Run Into China Trillion Trillion Drug Market Microwave Agitation

Following the signing of the cooperation agreement between AstraZeneca and India sun Pharmaceutical Co., Ltd. in November 2019, the second import fair of Shanghai was responsible for the introduction and promotion of a variety of cancer products in the sun pharmaceutical industry. Recently, the India Pharmaceutical Company Limited (hereinafter referred to as "the Arab guest degree") invested in the Dragon elephant medicine pharmaceutical preparations project in Taizhou. According to incomplete statistics, at present, there are at least 8 pharmaceutical companies in India, including sun pharmaceuticals, West press, Dr Reddy, and Al bin Du, who have entered the Chinese market in the form of joint venture or business cooperation.

In January 7, 2020, the head of the China Pharmaceutical city in Taizhou introduced to the twenty-first Century economic correspondent that the Dragon elephant pharmaceutical preparations project is the second phase of the project in Taizhou, China. "Cooperation with the Arab League has been negotiated for several years, and competition is fierce everywhere."

Since April 2018, the general office of the State Council issued the "opinions on reforming and improving the supply and use policy of generic drugs", and clearly put forward the internationalization of the generic drug industry, and encouraged overseas enterprises to establish R & D centers and production bases in China. India's generic drug companies have stepped up the pace of entering the Chinese pharmaceutical market. According to the data of the State Administration of drug control, the number of imported generic drugs was only 40 in 2017, and reached 65 in the first half of 2019.

According to Zhong Qi, an analyst at Minsheng securities, China's generic drugs must consider the competition of generic drugs in India when the product pipeline layout. Shi Lichen, head of Beijing Ding Chen medical management center, told the twenty-first Century economic news reporter that after the landing of a series of reform policies such as 4+7 procurement, it not only created favorable conditions for the entry of generic drugs including India into the Chinese market, but also intensified the competition of the domestic generic drug market, and the whole industry was facing a shuffle.

India pharmaceutical companies accelerate to China

It is understood that the Dragon elephant pharmaceutical Taizhou Co., Ltd. was registered in China Pharmaceutical city in October 2019, and invested by the top five generic pharmaceutical companies, India al bin Du Pharmaceutical Co., Ltd.

The Dragon elephant pharmaceutical preparations project total investment of 200 million US dollars, is the second investment project in Taizhou. After being put into operation, the annual output of injections is about 200 million bottles, with an annual output value of about 1 billion 600 million yuan and a profit tax of 538 million yuan. The product plan is to be sold to the United States and the European Union market.

The main products of the project are Bortezomib for Injection (antitumor preparation), poxconazole injection, fluviazine injection, sildenafil injection, Dezocine Injection and moxifloxacin hydrochloride injection.

In addition to Arabin, sun pharmaceuticals, West Lake and Dr Reddy also entered the Chinese market in the form of joint ventures or business cooperation.

However, India pharmaceutical enterprises did not develop smoothly in the Chinese market. According to statistics, only in April 2017 -2018 March, India's pharmaceutical exports amounted to 17 billion 300 million US dollars, of which 60% were exported to Europe and the United States and other high-end markets, China accounted for only 1%.

The first India pharmaceutical company, LANBO company, set up a joint venture in China in 1993. Although it has invested millions of rupees and developed more than 40 products, it eventually abandoned its joint venture shares. According to the analysis, the failure of LANBO Xi company is due to many reasons, such as the difficulty of market access, the long time consuming of commercial infrastructure, and the failure of cost competition with local pharmaceutical factories in China.

However, India enterprises have not given up the Chinese market. With the continuous promotion of business negotiations and the release of several policies, India pharmaceutical companies are gradually breaking the ice in the Chinese market.

In April 2018, the general office of the State Council issued the "opinions on reforming and improving the supply and use policies of generic drugs", clearly put forward the promotion of research and development of generic drugs, accelerated the evaluation of the consistency of quality and efficacy of generic drugs, promoted the internationalization of generic drugs industry, and encouraged foreign enterprises to establish R & D centers and production bases in China.

In June 21, 2019, the "Sino Indian drug regulatory exchange" was held in Shanghai. The two sides exchanged extensive discussions on the relevant laws, regulations and policies, technical requirements, drug inspection and compliance guidelines, bidding and procurement process of Chinese medicines, and cooperation between China and India. Since the start of the "Sino Indian drug regulatory exchange" held in less than two months, 4 pharmaceutical giants in India have made a breakthrough in the Chinese generic drug market.

After the "Sino Indian drug regulatory exchange", the first company to start action was Sun pharmaceutical, founded by Dilip Shanghvi in 1983, the largest pharmaceutical factory in the world and the fourth largest generic drug company in the world, followed by India's second ranking generic pharmaceutical factory, India pharmaceuticals Strides Limited pharmaceutical science company and the Fourth Ring Pharmaceutical Holdings Group, which announced the establishment of a joint venture to enter the Chinese market for drug registration and sales. After "I am not a drug God", India Pharma, a prototype manufacturer of India, also announced that it will officially enter the Chinese market.

Scramble for trillion generic cake

The reason why India pharmaceutical companies actively enter the Chinese market is optimistic about the huge market of Chinese generic drugs.

In 2017, the scale of China's generic drug market reached 500 billion yuan, occupying the largest revenue of Chinese pharmaceutical companies. According to the China Pharmaceutical Industry Information Center, influenced by factors such as the increasing prevalence of chronic diseases, aging population and medical insurance charges, it is expected that the scale of China's generic drug market will continue to grow in the future. By 2020, the scale of the market will be able to reach a trillion yuan and reach 14116 billion yuan.

In the licensing agreement between CMS and sun pharmaceuticals on the Tildrakizumab and 0.09% cyclosporin A eye drops respectively, Dilip Shanghvi publicly pointed out that China has more than 65% of the generic drug market, and we will expand its business in China within 6-9 months. This business will contribute a certain proportion to the total sales of solar pharmaceutical 4 billion US dollars in three years, "Dilip said. This cooperation is seen as an important breakthrough for sun pharmaceuticals to enter the Chinese market.

In India pharmaceutical company Strides Limited pharmaceutical science and the Fourth Ring Pharmaceutical Holdings Group announced the establishment of a joint venture, exclusive authorization of the four ring medicine in China registered, declared, commercialized and distributed four products, Strides Limited said that the recent development of drug regulation in China, so that the differentiation of high-quality generic drugs can be quickly approved, and its more than 140 product portfolio is in line with China's application, after the four products, it can choose to further expand the product mix.

The entry of generic drugs companies in India, especially in the context of 4+7 procurement, has made Chinese generic drugs particularly competitive. For example, in September 2019, Shanghai sunshine medicine procurement network announced that the "4+7" expansion will result in the result of being selected. The price of Olanzapine Tablets 10mg, a well-known generic pharmaceutical company in India, is lower than that of hausen pharmaceutical company. Eventually, it thought that the winning bid of 6.19 yuan / film was the first time to enter the siege.

"The development of generic drugs in India has been developing for many years. Many of them are manufactured according to the FDA standard. The quality and price have been recognized internationally, and will have a great impact on the Chinese generic drugs in the future." Shi Lichen said.

According to the official website of the India government, there are more than 500 pharmaceutical factories certified by the US FDA in India. The export data of India show that from 2012 to 2016, the total export volume increased from US $10 billion 100 million to US $16 billion 900 million, and the compound growth rate was 13.73%.

In Shi Lichen's view, under the multiple pressures of local counterparts, foreign capital raw materials, and India's generic drug companies, China's generic drug companies are facing tremendous pressure, but this will also push the domestic generic drug industry chain to upgrade from quality, price to efficiency, and boost the pharmaceutical industry shuffling, transformation and upgrading.

"In the face of competition upgrading, Chinese enterprises should first make their own decisions whether to choose innovative drugs or imitation drugs to make money. In the field of generic drugs, domestic enterprises must take comprehensive measures into consideration from the aspects of product approval, raw material and auxiliary materials supply, etc., focusing on the urgent needs of clinical products, developing high technology barrier generic drugs, extending the cost advantages of upstream raw materials, and innovating the downstream dosage forms." Shi Lichen said.

However, there is also a long track of India pharmaceutical market veteran to the twenty-first Century economic report reporter pointed out that the India generic drug enterprises in the Chinese market development is also facing a series of problems, such as India generic drugs into China, need to have transport fees, tariffs, domestic registration fees, operating expenses and so on may cause its cost to rise sharply. At the same time, India pharmaceutical enterprises from new to GMP certification time is longer, the future market pattern change is difficult to determine.