Biopharma Contract Manufacturing Market in China: Covid-19 Impact

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, the biopharma contract manufacturing 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 players engaged in the biologics contract manufacturing, worldwide.

But the recent outbreak of COVID-19 has created a prominent impact on how players engaged in the biopharma contract manufacturing 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 support from the cold chain market for pharmaceuticals. Thus, in the short-term, the outbreak is anticipated to substantially impact the China biologics contract manufacturing market; however, as the outbreak impact abates and biopharma companies resume normal operations, the demand for large-scale biopharma contract manufacturing is expected to increase significantly.

The Market Landscape of Chinese Biopharma Contract Manufacturing Market

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

list of Biopharma CMOs in China - some of these firms will face challenges

The Key Hub of Biopharmaceutical Manufacturing in China

Eastern China has emerged as the key biopharma contract 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 by type of biologics

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 analysis by year and partnership model, type of biologics as per Roots Analysis

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 includes expansion of current facilities as well as opening new facilities.

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, you can also download the SAMPLE REPORT on biopharma contract manufacturing by Roots Analysis.


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