Chinese pharmaceutical raw material companies should learn from the pharmaceutical industry of India

Jan 12 08:53 2012 David Yvon Print This Article

Government of India developed an ambitious’ development of the Indian pharmaceutical industry for 15 years planning’ in the mid-1980s and made a number of the corresponding supporting measures, including credit funds support for export-oriented pharmaceutical companies and tax rebates for companies of preparation products and so on.

For the actual effect,Guest Posting the Indian's encouragement for pharmaceutical products has become a great success.

To API (generic), for example, issued by the U.S. FDA DMF file has 648 Indian pharmaceutical raw materials, about China DMF certificate has been issued to the U.S. FDA to 2.2 times the number of pharmaceutical companies. Moreover, the Indian exports to the U.S. market have become the country with the largest variety of pharmaceutical preparations. Even as Asia's number one power in the Japanese pharmaceutical industry, its exports to the U.S. are not pharmaceutical preparations such as India and more varieties. According to the European Medicines Commission statistics, the Indian pharmaceutical companies received the COS certificate issued by the European Union has exceeded 600; end of last year, 617 copies in India shared the COS certificate, this figure is about the pharmaceutical companies to obtain COS country more than six times the number of certificates.

As we all know, much higher than the profits of export agents export of bulk drugs products, but many companies still follow the Chinese export of bulk drugs in exchange for a large number of old foreign exchange, and do not want a breakthrough in the export of agents. Because of U.S. export finished products to invest huge sums of money to plant and production equipment modification and transformation of other hardware and software, etc., corresponding to the export of bulk drugs is much simpler, provided they meet the quality standards on foreign lines. In fact, this is a short-sighted short-only map. As the international pharmaceutical market is fiercely competitive, China's export of bulk drugs in a lot of ‘fair average quality’ varieties, the export price of around U.S. $ 10 per kg, while the Chinese pharmaceutical companies if the U.S. FDA's CGMP certificate, once processed into bulk drugs formulations export, its price will turn a few times or even a hundred times.

Throughout the Indian pharmaceutical industry's strategy, there are many places worth to learn from Chinese pharmaceutical companies. First, India has the strength of the pharmaceutical companies to actively ‘go out’in the international pharmaceutical industry mergers and acquisitions. This can not only gain a foothold in the U.S. or Europe the land, but also European and American pharmaceutical companies to direct absorption of drugs in research and development of advanced concepts; Second, after the acquisition of Western pharmaceutical companies will be able to get on the market in Europe and valuable marketing network marketing experience, and this is something lacking in the Asian pharmaceutical companies.

Since 1996, India has three major pharmaceutical giants with Germany, Britain, the United States, Canada and Switzerland, pharmaceutical and other advanced countries to set up wholly-owned or joint venture pharmaceutical company, for which India has invested billions dollars on pharmaceutical. Indian companies have been able to export so many formulations developed markets in Europe and America, which merged with the European and American pharmaceutical companies large pharmaceutical companies are not unrelated. Such as the U.S. market, sales of 65 anti-HIV drugs, there are 60 pharmaceutical companies in India manufacturing and exports, while China only an anti-HIV drugs to the U.S. exports. Comparing the two, China's exports to the U.S. pharmaceutical preparations are obviously inferior to Indian companies.

United Nations Department of Health bids every year, which supply some of the less developed Third World countries free delivery drugs, including anti-diarrhea medicine, anti-inflammatory drugs, children's cough syrup, anti-AIDS drugs and other developed countries urgently needed medicine. Over the past decade, the Indian pharmaceutical companies such tender by the United Nations on the export of generic drugs often win, and the Chinese pharmaceutical companies in addition to artemisinin and other antimalarial agents made there is some advantage in exports, the export of drugs in the United Nations on the tender lost most of the Indian pharmaceutical companies. India's low labor costs and pharmaceutical companies in India to obtain a large number of U.S. pharmaceutical companies DMF, CGMP certificate, the objective for the Indian pharmaceutical companies to win tenders generic drugs United Nations Department of Health provides a great deal of help.

India's exports to the success of the pharmaceutical industry, a considerable part be attributed to China's massive exports of bulk drugs in India. In recent years, India has replaced Japan as China's largest buyers of bulk drugs. Bulk purchase of Chinese-Indian penicillin G potassium salt ,7-ACA, erythromycin thiocyanate and other bulk products, shipped back to China after the preparation or processing into other products exported to reap huge profits, while Chinese companies are becoming India's "raw materials drug vassal state. " Although India's exports of pharmaceutical products in the total amount can not be compared with China is still on, but in the export of bulk drugs or formulations Chinese companies profit margins are not as good as India. Indian pharmaceutical companies have a variety of hands far more than the number of certificates of Chinese enterprises, Chinese pharmaceutical companies no alternative but to take the "export to India and other countries a lot of bulk drugs," the road.

In addition, to further expand the international pharmaceutical market in the Indian pharmaceutical influence on the Government of India has come out in Mumbai held for three consecutive India CPHI. Held last December in Mumbai at the third CPHI India, a total of more than 600 manufacturers in 80 countries participating. In this session, officials of the Indian Commerce and Industry claimed that the Indian pharmaceutical industrial output value in 2015 is expected to scale than it is now 4 times, $ 25 billion.

Learn from the development experience of the Indian pharmaceutical industry, the Chinese pharmaceutical docetaxel companies should understand the profound lessons, because export of bulk drugs can only get a small profit in most cases. It is even worse that the production of bulk drugs produced much higher than the production of environmental pollution preparations. Cheap raw materials made in China, foreigners bought drugs and pollution will remain in China. Chinese pharmaceutical companies should learn from the successful experience of the Indian pharmaceutical industry, and strive to put more agents into the European market and other countries, not only have access to higher economic returns, but also reduce the production environment caused by API pollution.Source:http://www.cospcn.com

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David Yvon
David Yvon

MHC INDUSTRIAL CO., LTD is a high-tech enterprise which complements in technology and management. The company is a manufacturer of raw materials for global healthy industry . It specializes in providing stable quality, safe and reliable active substance for pharmaceutical.

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