Showing posts with label China. Show all posts
Showing posts with label China. Show all posts

Sunday, February 24, 2013

Monday, February 18, 2013

China's Innovative Pharma Landscape: Companies Currently Conducting R&D in China




Several pharmaceutical companies are actively growing pipelines of their own in China, although at present the cumulative R&D expenditure of all Chinese pharma businesses amount to less than the spent of a single multinational corporation (MNC) in the West. Almost all the businesses to date started off as generics producers who used existing cash flows and pharma positioning to move into the local innovative sector. Furthermore, whilst previously 90% of all pharma were state-owned, today roughly 6 out of 10 are already private.


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Sunday, December 30, 2012

China's Innovative Pharma Industry: What the Latest Set of 5-year Plans means for this sector


It is China month here at Bioassociate, and in our previous post on China we covered some of the new initiatives filed in the latest set of 5-year plans aimed at making China a competitor in the originator pharma space.

One such initiative has been the direction of foreign investment towards niches which the government has deemed "innovative". Needless to mention, pharma and biotech are high priority on the list of said niches.

Another issue which the government has prioritized (for very obvious reasons) is the intellectual property protection situation in the country. Historically, China has been one of the most notorious violators in the IP space, but perhaps all of that is about to change over the next decade.



Direction of Foreign Investment


The Chinese government has specified rules on the direction of foreign investment in order to nurture certain priority sectors and to restrict investment in others. China’s foreign investment policy is outlined in the Regulations for Guiding the Direction of Foreign Investment, which essentially classifies foreign investment into one of four classes: encouraged projects, permitted projects, restricted projects and prohibited projects.

As of 2009, investment in innovative pharma falls under the category of encouraged projects, specifically the production of raw pharmaceuticals which are under patent, those which are granted administrative protection in China, and products which use new technologies. Investment in generic APIs and traditional Chinese medicines is currently restricted, in order to direct investment towards the innovative sector.

In a step to improve investment opportunities for its innovative industries, the Chinese government launched ChiNext on the Shenzhen Stock Exchange—China’s “NASDAQ”—in 2009, paying particular attention to innovative enterprises and supporting venture entities. ChiNext is expected to play a crucial role in innovation by providing an important exit alternative for many start-ups over the coming years. The independent exchange caters to the high-growth, high-tech sector, and the majority of its 354 listed companies are SMEs with a combined market value of roughly US$ 118 billion. Currently, 24 companies are listed in the Pharmaceutical Industry on the ChiNext, 9 of which were listed in the last year (see table 1).



Table 1. 24 Pharmaceutical companies listed on the ChiNext (as of Oct. 2012)
  1. Ticker
    Company Name
    Listing Date
    Market Cap. (CNY bn.)
    300006
    CHONGQING LUMMY
    30/10/2009
    3.37
    300009
    ANHUI ANKE BIOTECHNOLOGY
    30/10/2009
    2.37
    300016
    BEILU PHARMA
    30/10/2009
    2.05
    300026
    CHASE SUN PHARM.
    30/10/2009
    7.55
    300039
    SHANGHAI KAIBAO
    08/01/2010
    6.50
    300049
    INNER MONGOLIA FREE MEDICAL TECH.
    20/01/2010
    1.59
    300086
    HAINAN HONZ
    26/05/2010
    2.65
    300110
    QINGDAO HUAREN PHARM.
    25/08/2010
    3.09
    300119
    TIANJIN RINGPU BIOTECH.
    17/09/2010
    3.28
    300122
    CHONGQING ZHIFEI-BIOLOGICAL PROD.
    28/09/2010
    12.6
    300138
    CHENGUANG BIOTECH
    05/11/2010
    1.67
    300142
    WALVAX BIOTECH
    12/11/2010
    6.73
    300147
    XIANGXUE PHARM.
    15/12/2010
    3.55
    300158
    SHANXI ZHENDONG PHARM
    07/01/2011
    2.74
    300181
    ZHEJIANG JOLLY PHARM
    22/02/2011
    2.02
    300194
    CHONGQING FUAN PHARM
    22/03/2011
    2.66
    300199
    HYBIO PHARM
    07/04/2011
    3.10
    300204
    STAIDSON BIOPHARM
    15/04/2011
    6.24
    300239
    BAOTOU DONGBAO BIOTECH
    06/07/2011
    1.80
    300254
    SHANGXI C&Y PHARMACEUTICAL
    19/08/2011
    1.16
    300255
    HEBEI CHANGSHAN BIOCHEM.
    19/08/2011
    2.17
    300267
    HUNAN ER-KANG PHARM
    27/09/2011
    4.33
    300289
    BEIJING LEADMAN BIOCHEM
    16/02/2012
    3.52

Note: There is substantial discrepancy between Market Cap values contained in the ChiNext company index found on the official Shenzhen Stock Exchange website, and values found on leading financial data websites. The official ChiNext company index can be found here: http://www.szse.cn/main/en/marketdata/sinformation/index.shtml?CATALOGID=1693&TABKEY=tab4

Intellectual Property Protection

Historically, China has had a skeptical approach towards IP protection, as it was viewed as a hindrance to the country’s imitation- and manufacturing-driven economy. Before 1992, patent protection was virtually non-existent, and between 1992 and 2008 pharmaceutical patents could essentially be violated on a “me-too” basis, where minor structural differences from existing drugs would suffice for marketing approval. In 2008 China became the newest entrant to the intellectual property arena, having finally adopted comprehensive patent protection regulations. Since then, the protection system strengthened significantly, albeit not sufficiently, and, despite the new initiatives, the IP protection arena remains in need of improvement. Current regulations still exclude IP protection of medical treatments, which encompass drug delivery, medical devices and personalized medicine.


Along with remaining regulatory concerns and loopholes, IP implementation is a pressing issue, particularly due to lack of adequate enforcement procedures in place, and due to insufficient numbers of enforcement authorities throughout the country whose pharmaceutical industry is highly geographically fragmented. In 2009, US businesses lost a colossal US$ 48 billion in sales, royalties and licensing fees due to patent infringement by Chinese manufacturers.


In a recent move to act on this issue, the Supreme People’s Court of China (SPC) has set up two judicial IP protection bodies to act on behalf of the innovative pharmaceutical industry. The government is additionally making an effort to engage with industry representatives and foreign authorities in order to progress necessary amendments in the IP system. A positive increase in numbers of IPR cases in recent years showcases the government’s efforts, and, because the government is able to draw on established legal environments, it is a matter of time before a sufficiently operational IP protection system is in place.

China’s strengthening IP protection regulations will certainly be an addition to the plethora of factors which will serve to buttress the innovative pharma industry over the next decade

Source found here

Monday, December 24, 2012

AP IMPACT: Big Pharma cashes in on HGH abuse


Posted: Dec 21, 2012 1:40 AM CSTUpdated: Dec 21, 2012 2:12 AM CST


Associated Press
A federal crackdown on illicit foreign supplies of human growth hormone has failed to stop rampant misuse, and instead has driven record sales of the drug by some of the world's biggest pharmaceutical companies, an Associated Press investigation shows.
The crackdown, which began in 2006, reduced the illegal flow of unregulated supplies from China, India and Mexico.
But since then, Big Pharma has been satisfying the steady desires of U.S. users and abusers, including many who take the drug in the false hope of delaying the effects of aging.
From 2005 to 2011, inflation-adjusted sales of HGH were up 69%, according to an AP analysis of pharmaceutical company data collected by the research firm IMS Health. Sales of the average prescription drug rose just 12% in that same period.
EDITOR'S NOTE - Whether for athletics or age, Americans from teenagers to baby boomers are trying to get an edge by illegally using anabolic steroids and human growth hormone, despite well-documented risks. This is the second of a two-part series.
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Sunday, October 7, 2012

A Question in the New England Compounding Center Meningitis Case No One Seems to Be Asking: Where Did They Get Their API or Bulk Powders From?

One question that investigators may or may not be looking at, and one that news reports have not seemed to pick up on is where did New England Compounding Center buy its active pharmaceutical ingredients (api) or bulk powders or chemicals from.   Previously reported here on August 29, 2012, was this:


Alarming Report About API from China

Melanie Lee and Ben Hirschler at Reuters have written a Special Report: China's "wild east" drug store dated August 28, 2012.  This report contains alarming information about API from China.  It should be read by everyone and serves as a reminder to ask questions about the source of API used by compounders. To read the report click here.

On June 13, 2012, this was reported on the blog:

The Problems With Buying API From Foreign Sources

The Problems With Buying API From Foreign Sources

More than 80 percent of API is imported into the United States. The problem with buying API from foreign sources is that you do not know what you are getting.  For example, a pharmacetuical representative in Arizona may actually obtain its API from countries such as those in Asia or South America.  In some of these places, quality standards are very lax and counterfeit medications are more widespread and common. The identity, purity, potency and safety of drugs purchased from foreign sources is not guaranteed. It is essential that pharmacists know where the API orginated from even if they are purchasing the API from a company in the United States. Using sources of API whether the API comes from a foreign country or the United States without knowing the identity, purity, potency and safety of drugs simply to save money is not worth the exposure in liability, both civil and criminal, if a patient--human or animal--is injuried or dies from the use of these type of API.  All drugs and API distributed in the United States must comply with the Federal Food Drug and Cosmetic Act, regardless of where they are made. Note that it is illegal (with very few exceptions) to ship prescription drugs that are not approved by FDA into the US, regardless of whether the drug is legal to sell in another country. 


For more information click here.  
To see notes from an FDA seminar on imported API click here.
To review a FDA slide presentation on imported API click here.
To read prior testimony about API, click here.
To read news articles click here,  here,  here and  here
To read a 2012 report on India, click here.
To read an article published April 2012, that suggest better safeguards for imported drugs are needed, click here.
To read the FDA's report entitled Pathway to Global Product Safety and Quality, click here

Hopefully the right people are asking the right questions in the New England Compounding Center Meningitis Outbreak case
.

Monday, September 17, 2012

Task force targets Chinese shipments of meth chemicals


About 80 percent of the meth in the United States is now made in Mexico mainly using Chinese ingredients shipped across the Pacific, according to the U.S. Drug Enforcement Administration. The DoD task force, which includes ... China has become the top ... 

Thursday, September 6, 2012

Dangers aside, drugmakers can't live without Chinese APIs

September 3, 2012 | By Eric Palmer
When it comes Chinese-made APIs, Western drugmakers are between a rock and a hard place. They know Chinese oversight of bulk APIs is insufficient to snuff out substandard producers, but since China produces more APIs than any other country, they can't live without them.
"If China for some reason decided to stop exporting APIs, within three months all our pharmacies would be empty," Guy Villax, CEO of Hovione, tells Reuters. The Portuguese API supplier has factories in China, as well as the U.S. and Ireland.
After 80 U.S. patient deaths were tied to tainted Chinese heparin in 2008, Chinese authorities pledged to crack down on API suppliers. But a Reuters investigation finds that while China is doing more, the fact that many Chinese APIs are substandard or counterfeit is an open secret. "Illegal ingredients in bulk are a big problem, but nobody talks about it," Villax says.


Read more: Dangers aside, drugmakers can't live without Chinese APIs - FiercePharma Manufacturing http://www.fiercepharmamanufacturing.com/story/dangers-aside-drugmakers-cant-live-without-chinese-apis/2012-09-03#ixzz25iHugod3 
Subscribe: http://www.fiercepharmamanufacturing.com/signup?sourceform=Viral-Tynt-FiercePharma Manufacturing-FiercePharma Manufacturing

Wednesday, August 29, 2012

Alarming Report About API from China

Melanie Lee and Ben Hirschler at Reuters have written a Special Report: China's "wild east" drug store dated August 28, 2012.  This report contains alarming information about API from China.  It should be read by everyone and serves as a reminder to ask questions about the source of API used by compounders. To read the report click here.

Saturday, August 18, 2012

Report Says China and India are emerging as global superpowers in the API industry

China and India are emerging as global superpowers in the API industry offering promising features, says RNCOS.
According to a new research report by RNCOS, entitled “Global Biotech API Market Analysis”, China and India are emerging as global superpowers in the API industry. The availability of cheap resources, such as infrastructure, labor, raw materials, etc accompanied by the advancing pharma expertise is one of the key factors backing this growth. Both the economies present a very bright opportunity for CRAMS as several pharma manufacturers outsource their APIs and intermediaries to these two low-end economies. While generics are a mainstay for the API industry in both the countries, India is posing a threat to India as its generic API industry has outshone that of China.

The rapidly evolving pharma market and increasing demands for drugs worldwide is primarily driving growth in the global API market. While the generic and the branded APIs represent equal share in the API merchant market, the growth of generics is expected to be incessant. The initiatives by the government to cut down on burgeoning costs have resulted in the active promotion of the generics market. Biotechnological APIs are also expected to evolve in the market. The rising patent expiries among the biopharmaceutical products in Europe and the US will increase the demand for bulk drugs.  Further a latest report by RNCOS, also foresees the worldwide API market size to be likely to register a healthy CAGR of around 8% during 2012-2015.

The report spread in over 55 pages provides a proper understanding of the API market globally along with an idea about its current state. The key industry drivers have been covered in details along with the current and future market projections for the time period of 2012-2015. The major segments and sub-segments of the API industry have been covered along with the description of the API industry in the most promising geographies of India, China, Italy and Taiwan. The report also analyzes the opportunity assessment for companies in the global APIs market in terms of therapeutic segments and countries’ comparative index.  An analysis of the emerging areas, competitive landscape, and regulatory stringency further provides a holistic understanding of the global API market.

For FREE SAMPLE of this report visit: http://www.rncos.com/Report/IM424.htm
 
Source is found here.

Thursday, August 9, 2012

FDA's China Offices Focus on Product Safety

More than three years after a series of safety scares involving Chinese exports, officials in the Food and Drug Administration’s China office say the Chinese are on their way to developing an infrastructure that better ensures product safety.

Christopher Hickey, Ph.D., who leads FDA’s 13-person staff in China, says the agency has trained more than 1,600 manufacturers and regulators on United States safety standards over the past two years.
“The FDA’s China office represents a new era in cooperation between the United States and China on the safety of food and medical products,” he says.
Michael Kravchuk, who served as deputy director in Beijing until he retired in September, says FDA has built solid relationships with Chinese regulators and exporters since officially opening an office in the capital city of Beijing in November 2008. After a two-year stint in China, Kravchuk says he realized that FDA and their Chinese counterparts are working toward a common goal.
“What I realize is we are all trying to ensure quality products are on the market—regardless of where they are sold. They want to learn how we approach product safety and use as many of our techniques as possible,” says Kravchuk.
Toward that end, FDA held a hands-on workshop in the cities of Hangzhou and Zhoushan in September. The event included a half-day of classroom instruction and three full days of demonstrations at two plants that process low-acid canned foods—like mushrooms, sardines, artichoke hearts, and tuna.
Hickey says the workshop began with an FDA expert giving Chinese regulators step-by-step instructions on how their U.S. counterparts inspect facilities and products, covering everything from machinery maintenance to container specifications and labeling requirements.
On the second day, the workshop moved to a manufacturing plant where congee, a breakfast food similar to oatmeal, is made and packaged. Workshop participants watched an FDA investigator perform a mock inspection at the facility.

Past Problems

Some consumers have been wary of products made in China since a series of safety scares in 2007 and 2008. That’s when contaminants in the blood thinner Heparin, pet food, toothpaste, seafood, and other products caused illnesses and some deaths in the United States and other countries.
The Chinese also suffered the consequences of contaminated products. In 2008, about 300,000 Chinese babies were sickened and six died from infant formula contaminated with the toxic chemical melamine, which is used to make concrete and plastics.
Some manufacturers purposely added melamine to formula because the chemical made it appear that the product contained more protein than it actually had. The incident resulted in numerous criminal prosecutions, and China executed two people connected to the scandal. 
Hickey says the incidents underscored the need for FDA staff permanently stationed in Beijing, Shanghai, and Guangzhou.
“Our primary duties have been to build relationships with FDA’s regulatory counterparts and to work with Chinese firms that want to export products to the United States,” he says.
The office also aims to increase the number of inspections at manufacturing plants; boost collaboration on product safety with other U.S. government agencies; and monitor events—like an earthquake or other natural disaster—that could affect the safety or availability of FDA-regulated products.
Kravchuk says the China team is making progress, greatly increasing the number of inspections and investigations.
And the team may be getting reinforcements. In his budget proposal for the 2013 fiscal year, President Obama has requested funding that will enable FDA to:
  • strengthen its inspection and analytical capabilities by increasing its presence in China by sixteen inspectors and by adding three U.S.-based China analysts.
  • broaden the range of its inspections. In addition to inspecting Chinese facilities that manufacture food and medical products for export to the United States, FDA will inspect sites of clinical trials and conduct follow-up inspections to ensure that firms continue to produce and manufacture food and medical products under safe conditions, and that they apply sound production practices. 

Global Marketplace

Roughly 24 million shipments of FDA-regulated products were imported into the U.S. in the 2011 fiscal year—from Oct. 1, 2010, through Sept. 30, 2011—from 228 foreign jurisdictions. This represents a four-fold increase over the past decade. This steadily increasing volume of imports has made it more important than ever for FDA to build relationships with regulators and industry abroad, says Murray Lumpkin, M.D., FDA’s senior advisor and representative on global issues.