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Publication date: 22 October 2012
Author(s): Xiaorong He, Senior Research Fellow, Boehringer-Ingelheim
Evolving landscape of pharmaceutical outsourcing in China
China’s economic growth has shocked and awed the world, with its GDP growing at an average rate of 10 per cent for 30 years1. The astonishing economic growth has also spurred rapid growth of pharmaceutical outsourcing business in China. In the past, China had been the major source of raw materials, basic intermediates and commodity bulk drugs for the pharmaceutical industry. Starting five to 10 years ago, China gradually moved up the value chain, providing a wide spectrum of services encompassing drug discovery support, preclinical development, clinical trial and contract manufacturing services to western Pharmaceutical and biotech companies.
PricewaterhouseCoopers ranked China as the most desirable pharmaceutical outsourcing location in Asia when considering the overall scores of cost factors, a range of risks associated with the territory environment and the extent of the market opportunity2. This article analyses key opportunities and risks in pharmaceutical outsourcing to China in the context of changing economic, political and social conditions. Hopefully, this will provide a useful framework to understand how the pharmaceutical outsourcing landscape has been and will be evolving in China.
ABB Analytical Measurement Analytik Jena AG Aptalis Pharmaceutical Technologies ASM - Aerosl-Service AG Azbil BioVigilant, Inc. B&W Tek, Inc. bioMérieux BioTrends – Archilex SA BMG LABTECH GmbH Bruker Daltonik GmbH CAMO Software AS Catalent Pharma Solutions Chemspec Europe Ltd CI Precision Dow Chemical Company Ltd EUROGENTEC FOSS NIRSystems, Inc. GE Analytical Instruments Gerresheimer Group HAMAMATSU PHOTONICS EUROPE I Holland Limited IDBS IONIMED Analytik GmbH LI-COR Biosciences Lonza Natoli Engineering Company, Inc. Pall Life Sciences PANalytical B.V. Patheon Inc PhyNexus, Inc. ReAgent Roche Sirius Analytical Instruments Ltd Vala Sciences Veltek Associates Inc.