(Yicai Global) Jan. 10 -- Sun Pharmaceutical Industries, Cipla, Dr. Reddy's Laboratories and Aurobindo Pharma are just some of the Indian pharmaceutical firms striking partnership deals with Chinese companies as they eye the country's burgeoning generic drugs sector, the 21st Century Business Herald reported today.
China's market for generic drugs, or medications produced after patents expire, is expected to be worth CNY1.4 trillion (USD202 billion) this year, almost triple what it was in 2017, according to the China National Pharmaceutical Industry Information Center.
This is due to the rise of chronic diseases, an aging population and the restricted list of prescription drugs included in national medical insurance. Generic drugs can be made by any manufacturer without the need to apply for permission from the original developer. They make up the lion's share of earnings at Chinese drugmakers.
Since April 2018, China has encouraged foreign firms to set up research and production bases through local partnerships. Last year, Mumbai-based Cipla formed a joint venture with Jiangsu Acebright Pharmaceuticals, Bangalore-based Strides Pharma Science teamed up with Sihuan Pharmaceutical Holdings and Hyderabad-based Natco Pharma announced plans to enter China, the 21st Century Business Herald said.
Aurobindo, which is headquartered in Hyderabad, is building its second production plant in Taizhou, Jiangsu province with Shanghai Longjin Investment. Costing USD200 million, the factory is expected to produce around 200 million injectables a year to be sold in the US and the European Union, bringing in revenue of CNY1.6 billion (USD230.1 million). Profit before tax is estimated at CNY538 million.
Mumbai-based Sun Pharma signed an agreement with UK pharmaceutical giant AstraZeneca at the China International Import Expo last November to bring the Indian firm's anti-tumor drugs to China.
Editor: Kim Taylor