[NPInfo] Chinese Generics coming

[David Mittman]

A coming wave of Chinese pills is set to push down generic prices, as  
more low-cost finished meds from China win approval in major markets,  
Reuters reports, citing an IMS Health study.

You may recall that China is already the world’s biggest producer of  
active pharmaceutical ingredients, but so far hasn’t been a  
significant supplier of finished generic pills. But last year’s  
first FDA approval of a Chinese generic - a copy of the Viramune AIDS  
drug - indicates a big change is coming.

At least 10 other Chinese companies are set to follow suit, Reuters  
writes, and some could be available as early as this year, causing  
increased competition for the generic industry. “In order to ensure  
their success in the market, the Chinese manufacturers are likely to  
undercut all others on price,” IMS wrote. “Chinese policy will  
drive generic prices down still further, with far-reaching  
consequences for both R&D players and international generic  
companies.”



The rise of Chinese generic drugmakers is expected to mirror the  
advent of companies from India, such as Ranbaxy Laboratories, which  
also started out as an API supplier but moved into finished generics  
a decade ago. IMS believes China will seek to erode India’s strong  
position in manufacturing by targeting the US, Europe and key  
emerging markets.

One potential obstacle for China’s emerging generics industry,  
however, will likely be its reputation for quality, such as the  
Heparin scandal. “India has had less publicity than China for  
manufacturing inadequacies,” IMS writes, “…and it is here where  
the competitive battle may be won or lost.”