Team Blitz India
NEW DELHI: Drugmakers are seeking to limit their reliance on Chinese contractors who produce drugs used in clinical trials and early-stage manufacturing, a move that is benefiting rivals in India, according to interviews with 10 industry executives and experts.
China has for nearly 20 years been the preferred location for a range of pharmaceutical research and manufacturing services due to the low cost and speed offered by contract drugmakers there.
That relationship largely held firm despite a US.-China trade war under the Trump administration and supply chain havoc experienced by other industries during the COVID-19 pandemic. But increasing tensions with China have prompted more Western governments to recommend that companies ‘de-risk’ supply chains from exposure to the Asian superpower.
That is leading some biotech companies to consider using manufacturers in India to produce active pharmaceutical ingredient (API) for clinical trials or other outsourced work.
“Today you’re probably not sending an RFP (request for proposal) to a Chinese company,” said Tommy Erdei, Global co-head of healthcare investment banking at Jefferies. “It’s like, ‘I don’t want to know, it doesn’t matter if they can do it for cheaper, I’m not going to start putting my product into China, “ he added.
