How COVID-19 Poses a Sharp Challenge on China Biopharmaceutical Contract Manufacturing Market?

China, epicenter of the COVID-19, is the world’s second largest pharmaceutical market and accounts for 20 % of the global output of APIs. With over 25 biologics and biosimilar products approved till date and close to 1,000 clinical trials, investigating a variety of biologics and biosimilars, being underway in this region, China’s biopharma market is growing at a healthy pace. Further, owing to several benefits, such as lower manufacturing costs, availability of cheap and skilled labor, enhanced reimbursement policies and a supportive regulatory landscape, China is becoming an attractive outsourcing destination for biopharmaceutical developers.

But the recent outbreak of COVID-19 has created a prominent impact on how biopharmaceutical contract manufacturers operate in China. Though there has not been any delay in the drug approvals, in fact, National Medical Products Administration (NMPA) has issued more than 70 emergency approvals, including several diagnostic tests that were approved within five days; however, there has been an immediate disruptions / slow-down in clinical trials. In addition, disruptions related to warehousing and distribution of biologic products have also been observed, which require cold chain management. Thus, in the short-term, the outbreak is anticipated to substantially impact the China contract manufacturing market; however, as the outbreak impact abates and biopharma companies resume normal operations, the demand for large-scale contract manufacturing is expected to increase significantly.

The Market Landscape of Chinese Biopharmaceutical Contract Manufacturers

Presently, over 35 contract manufacturers are engaged in the manufacturing of biopharmaceuticals in China; of these, 75% have the required capabilities for manufacturing proteins / peptide drugs.

list of CMOs in China

The Key Hub of Biopharmaceutical Manufacturing in China

Eastern China has emerged as the key biopharmaceutical manufacturing hub in China, having the maximum (over 45%) number of biopharmaceutical manufacturing facilities. It is worth noting that 55% of the overall biopharmaceutical capacity is installed in China is also contributed by facilities located in eastern China.

China - key hub of biopharma manufacturing

Establishment of Multiple Partnerships Between Stakeholders in this Domain

Over 75 partnerships have been established in this domain, between 2016-2020. Interestingly, around 64% of reported deals were established after 2017, while maximum partnership activity was observed in 2018.

China CMOs - Partnerships and Collaborations

Active Involvement of Big Pharma Players in Biologic-Related Initiatives in China

Several big pharmaceutical players have carried out multiple biopharmaceuticals focused initiatives, including acquisitions, facility establishments, joint ventures, partnerships / collaborations, and venture capital funding, in China; of these, over 65% of such initiatives were undertaken post 2010.

China - Big Pharma Initiatives

To get a detailed information on the key players, recent developments, number of grants awarded, number of patents filed, capacity available in this domain and the likely market evolution,

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How COVID-19 Poses a Sharp Challenge on China Biopharmaceutical Contract Manufacturing Market?

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