India and China compete for API market

India and China compete for API market

According to the Indian PRINT website, the Indian government has approved in principle the establishment of API manufacturing bases in Himachal Pradesh, Telangana, Andhra Pradesh to counter China’s leading position in this field. According to the plan, the government intends to provide 70% of the total cost or no more than 1 billion rupees (approximately RMB 98.01 million) to each base.

The so-called APIs, also known as active pharmaceutical ingredients (APIs), are substances that are prepared by chemical synthesis, plant extraction, or biotechnology, but cannot be taken directly by patients. Generally, they are made directly after being processed by adding auxiliary materials and other processing procedures. drug. According to statistics, China can produce more than 1,500 kinds of APIs, with a total output of one million tons and an export volume of over 60%. India’s “Business Standards News” said that although India’s bulk drug market has achieved significant development in 2019, it still needs to import about 60% of APIs from China.

Data shows that the global API market size increased from US $ 119.6 billion to US $ 155 billion from 2013 to 2017, which is higher than the growth rate of drugs in the same period. According to industry agency analysis, the global API market size will rise to $ 225 billion in 2021.

Speaking of the reasons for the Indian government to provide policy guarantees for the development of APIs at this time, an official from the Indian Pharmaceutical Industry Association told the Global Times reporter that China ’s APIs are unmatched in price. It is often 1/3 cheaper than similar products on the market. India imported nearly 7 billion US dollars of APIs in 2018. However, due to China ’s increasing emphasis on environmental protection in recent years, many Chinese pharmaceutical companies are upgrading their industries. India’s API market supply poses some challenges.

In addition, India ’s Money Control website also shows the reason why India is vying for the API market. It is reported that the cost of APIs in China is facing rising risks, or it will further stimulate the Indian government to introduce policies to encourage the localization of APIs.

An official from the Indian Pharmaceutical Association told reporters that for China, the government’s policy of promoting environmental protection supervision will help the API industry to take the opportunity to optimize its product structure and upgrade its industry, and to transition to the development of high-end APIs. In addition, because developed countries in Europe and the United States basically adopt the “drug master file” (DMF) management method for bulk drugs, China can also use this upgrade and transformation to achieve a management mode transition and eliminate some small pharmaceutical companies that do not meet market competition standards. Achieve centralized scale development.

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