Chinese pharma industry output to reach USD 79bn in 2007

According to a report released by the Chinese State Food and Drug Administration's Southern Medicine Economic Research Institute (SMERI), total gross industrial output value of China's pharmaceutical industry may reach CNY 600bn (USD 79bn) in 2007, up 17.8 per cent to 18.5 per cent compared with 2006 figures.

The Chinese government launched a series of polices to increase regulation in the pharmaceutical industry in May 2007, with some small or unregulated companies excluded from the market or completely shut down.

In 2006, the top 100 domestic pharmaceutical manufacturers brought in 30 per cent of total sales, while those generated by the top 100 pharmaceutical distributors accounted for 67.9 per cent of the total.

The SMERI report said that, although the pharmaceutical industry in China is still highly segmented, a trend towards additional consolidation in the near future is now identifiable.

According to the China Association of Pharmaceutical Commerce, H1 2007 sales from seven categories of pharmaceutical products reached CNY 127.4bn (USD 16.8bn), or a year-on-year growth rate of 9.6 per cent. SMERI said that this growth will be maintained in H2 2007.

After three rounds of price cut policies instituted in January 2007, SMERI said there would be no further significant adjustments to drug prices. The National Development and Reform Commission will now adjust the prices of drugs on the basic medical insurance list once every two years and will also continue to increase the number of drugs listed on the basic medical insurance list.

Chinese counterfeit malaria drugs recalled from Africa
According to government reports, Chinese pharmaceutical company Holley-Cotec has said it will recall thousands of anti-malarial drugs supplied in Kenya after the government there uncovered a counterfeit syndicate.

An analysis conducted by the Malaria Control Unit in Kenya found that the drug artemisinin had low levels of active ingredients leaving patients taking the drug without protection.

MCU spokesperson Willy Akwale told a press conference that the drug was produced by Holley-Cotec Pharmaceuticals headquartered in China, with up to 20,000 doses for sale on the Kenyan market.

The Kenyan ministry of health has intensified campaigns to crack down on counterfeit drugs readily available in the country.