CPhI China Briefings Show Scale of Chinese Pharma Markets

The sixth CPhI China exhibition (www.cphi-china.com), presented June 27-29 inShanghai, offered a showcase for the explosive growth of the Chinesepharmaceutical sector. The sprawling exhibition at the Shanghai NewInternational Expo Center offered 1132 exhibitors (all but 137 of themChinese) in four halls, and drew an estimated 19,000 visitors, up about20% from the previous show.

Minghua Lu, publisher of the eChinaChem.com chemical industry directoryand CEO of Pacific Genuity (San Carlos, CA and Shanghai, www.pacificgenuity.com),organized a press briefing and tour of the Shanghai pharmaceuticalindustry to accompany CPhI.

China is the world's fastest growing large economy, with annualpharmaceutical sector growth of 22%, Lu noted. And, total Chinesepharmaceutical activity, including domestic consumption and exports ofboth finished products and ingredients, will total about $62 billlion(RMB 510 billion) by the end of 2006, according the ChinaPharmaceutical Association figures quoted by Huifang Wu of BeijingOrientbit Technology (Beijing, www.healthoo.com).

China, Lu pointed out, supplies some 60 active pharmaceuticalingredients to the world market, including 70% of the world'spenicillin, 50% of its aspirin, and 35% of its paracetamol(acetaminophen), generally at prices 35-65% lower than Westernsuppliers.

A "clear and complete China strategy," Lu emphasized, "is critical tocapture new sales and cost savings opportunities." The country exportedabout $6.1 billion in pharmaceutical products and ingredients in 2005,and imported about $2.7 billion. And, this growth has happened astightening Chinese enforcement of good manufacturing practice standardshas driven producers out of the pharmaceutical market. In 1998, morethan 7000 companies supplied pharmaceutical products and intermediates,Lu said. By the end of 2005, that number had shrunk to a stillsubstantial 5300, of which 3959 have been certified GMP compliant.