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    Home > Medical News > Medical World News > What are the possibilities of localization of Indo-American API?

    What are the possibilities of localization of Indo-American API?

    • Last Update: 2021-03-05
    • Source: Internet
    • Author: User
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    1990s, India has been one of china's important markets for API exports. According to import and export statistics released by the General Administration of Customs of China, China's exports of API to Asia reached 5.4461 million tons last year, and Asia has become the largest market for China's API exports, while India is China's largest export destination for API in Asia.

    China and India have become pharmaceutical co-prosperityIt is reported that 70% of the raw materials needed by the Indian preparation industry come from China. In particular, paracetamo, aspirin, ibuprofen and other Indian market consumption of huge amounts of anti-heat analgesics, dexamisone and other hormone drugs, vitamin C, vitamin E, vitamin D and other commonly used varieties are basically exported from China. In addition, many commonly used antibiotic raw materials, such as Qingdamycin, hydrochloric acid tetrycline, streptomycin, penicillin salts, cephalosporins, large ring esters and carbon penicillin, blood pressure-lowering drugs and other raw materials products, India also bought from China, shipped back to the domestic processing into preparations. It can be said that the Indian pharmaceutical industry has been inseparable from China's raw materials.In the past few years, the European Union gradually raised the "threshold" for API to enter the European market, the same is true of the United States, so China's exports to Europe and the United States is not fast growth in the number of API. According to the statistics of the General Administration of Customs, Last year, China's exports of API to the United States were only 787.9 million tons, and the total amount of API exports to Europe was 2.0763 million tons, both lower than China's total exports of API to the Asian market.According to foreign media analysis, India and China's pharmaceutical industry has formed a de facto "co-prosperity." On the face of it, India has a deficit with China's pharmaceutical trade, and in fact India is not "losing money". India has more than 18,000 pharmaceutical plants, more than 90% of which are preparation plants, Indian preparation plants to buy Chinese raw materials, processed into a variety of preparations, a large number of exports to Bangladesh, Sri Lanka, Maldives and other South Asian countries and many countries in Africa to earn valuable foreign exchange.Last year, India's pharmaceutical industry was worth $40 billion and exported $22 billion worth of drugs, more than half the country's total pharmaceutical industry, according to a new report in the Indian pharmaceutical media. It is noteworthy that more than half of the API used in India's exports use Chinese exports of API. In view of this, senior Indian officials worry that in the event of a dispute between India and China, China will cut off supplies of raw materials to India, India's pharmaceutical industry will be paralysed by rice-free cooking.Of course, in China's view, these concerns are completely unnecessary, and while India and China are at conflict over the undefined border, they will not affect Chinese exports of API to India. Because China's pharmaceutical industry has experienced more than 70 years of rapid development, already has a huge raw material production capacity, China's domestic market can not digest these raw materials, can only be exported to overseas markets.

    production of raw materials is not aAccording to the latest Western media reports, the Indian government has begun to implement the "Indian API localization process plan", taking the country's first step to increase the production of RAW. According to the Hindustan Times, the Indian government announced at the end of June that it would allocate Rs. 30 billion for the construction of three API industrial parks and Rs. 69.4 billion to support the production of 53 of India's most scarce API products. This could be seen as one of the concrete steps India intends to take away from its dependence on Chinese raw materials.According to foreign media, India intends to gradually reduce the number and variety of imported Chinese raw materials in the next five years. First of all, increase the self-seopping rate of nearly 100 kinds of important raw materials, and then expand the self-severity rate of other raw materials, and finally achieve the goal of reducing the import of Chinese raw materials.But India's National Association of Pharmaceutical Manufacturers disagrees with the official measures. Senior Figures in India's pharmaceutical industry argue that senior government officials lack insight into the complex interdependence of the global industry. The international pharmaceutical industry has long been one of the industries with a clear division of labor. Over the past few decades, India has been heavily dependent on preparation production because of higher profit margins for production preparations, low profit margins for API and many market risks, and reliance on imported API for historical reasons. Now, the Indian government's attempt to quickly move away from its reliance on China's supply of raw materials is, on the face of it, well-justified and may in fact be "out of reach".At present, the international market has thousands of commonly used API products, Indian pharmaceutical companies in a very short period of time to thoroughly grasp the production process of these products, is undoubtedly the "sky pavilion"-style dream. Many factors must be taken into account in the production of API, such as product quality control, cost, process and environmental protection, and India's only advantage is the low labour costs, which is of little use to the production of API that requires know-how, as the production of API requires engineers and skilled workers with extensive expertise. Moreover, China's API industry is not a one-off, is after decades of development to form today's industrial advantages. Chinese-made API not only quality in line with the European and American pharmacopeia standards, but also, more importantly, the price in the international pharmaceutical market is extremely competitive, so European and American manufacturers are scrambling to buy Chinese-made API.

    increased costs of U.S.-made APIIf it rejects Chinese-made api completely, India will go back decades to the levels of the early 1980s. If all the API is made in India (which is not yet possible), it is estimated that the price of medicines in the Indian market will increase by 23% to 48%, because many of India's home-grown API costs and prices are much higher than similar RAW drugs in China, and high-priced drugs are the majority of the Indian people do not want to see.India's top officials want to "unilaterally cut" india's pharmaceutical industry and China's pharmaceutical industry for decades to form a win-win cooperative relationship, it seems to do more harm than good. "Over the past few decades, the vast majority of india's commonly used API products have been imported, with price the biggest consideration, " the head of the Indian Pharmaceutical Association said recently. If the Government is beshed to using only domestic (raw materials) medicines instead of foreign imported raw materials, then the cost factor has been taken into account? Who will pay for high-priced drugs in the future? Is there a government subsidy? "Not to mention some high-end API products, Indian pharmaceutical companies have difficulty in a short period of time to master their production processes, such as carbon penicillin raw materials and China has raw material advantages of hormone products, China has the world's largest potatosaccharide production capacity, they are the starting material for the synthesis of all hormones. So the head of the Indian Pharmaceutical Association believes that the Indian government is considering the localization of raw materials to replace Chinese imports, more like a "painting cake to fill the hunger", no marginal plan.What is really worrying is that, according to recent foreign media reports, the U.S. government has also begun the process of localization of API to reduce dependence on Chinese API. The Trump administration has reportedly allocated money to PHLOW CORP, a U.S. API maker, to expand its API production capacity in an effort to move away from the U.S. pharmaceutical industry's reliance on Chinese API. In addition, U.S. President Donald Trump has signed an executive order to increase the production of essential drugs, medical equipment and protective equipment in the United States. The order requires the U.S. government to draw up a list of essential medicines and to buy them from U.S. companies, not from foreign countries.The United States, like India, has a strong pharmaceutical production capacity and the ability to produce a variety of apimas. Previously, U.S. pharmaceutical companies imported large quantities of API from China in order to reduce production costs, because the price of Chinese-made API is only one-third or even a quarter of the price of U.S.-made API. If the U.S. government is determined to produce its own raw materials, it will undoubtedly push up the market price of its own drugs and significantly reduce the profits of drugmakers, which is certainly what U.S. drugmakers do not want to see.   In any case, Chinese API manufacturers should pay close attention to the new development of the self-production of RAW drugs by governments and their impact on China's API exports, and prepare for it as early as necessary. (Medical Economics)
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