API China 2019 In Hangzhou has finished almost one month, we didn’t get to share our thoughts concerning it till today. Below are several of our thoughts about API China 2019 in Hangzhou, hoping they can be useful for our customers.
1. More imported APIs from abroad.
There are more and more imported APIs and basic chemical solvents introduced, mainly from India and Europe. Those imported APIs are either introduced by Chinese trading companies or by Foreign exhibitors. For API importers, you can take a note on which APIs are from which country, so you can try to locate your suppliers for certain APIs.
We saw a big billboard advertising all the imported APIs from one shanghai trading company. The number of imported APIs is over 80, this is a sign that China is more and more open, we introduce and import more foreign APIs for the needs of the Chinese market. We can also see more and more imported APIs are under registration in the Chinese FDA.
2. More and more Indian suppliers are exhibiting
It is common to see Indian exhibitors in CPHI Shanghai every June. There are International exhibition halls for foreign countries that have interests to showcase and promote their strong APIs.
But It is a whole different thing to see Indian Exhibitors in API China because API China mainly targets end-users in China. Without the obvious advantage of prices, they won’t bother to put a show here.
This proves that for certain APIs that Chinese manufacturers are not competitive, Indian competitors are happy to take the market share.
Take imatinib, for example, Imatinib mesylate raw material from India is already an old API with better prices and documents support compared to that of China, not to mention the price of finished medicines. There were many cases that Chinese patients were buying imatinib tablets from India for many years. There was even a movie about one lawsuit against a medicine smuggler from China when the smuggler was captured.
As for imatinib API, Only 1 CEP holder is from China: Qilu TianHe Pharma. But there are 6 of them from India, which out-numbers China by 5.
CEP holders for imatinib from India are as below:
1.Hetero Labs. 2.Shipla Medicare. 3.Laurus Labs. 4. Natco Pharma. 5.Cipla Limited. 6.Msn Laboratories
3. API Prices are getting higher every year.
We have inquired several APIs from this fair, prices for cheap API such as paracetamol, metronidazole, aspirin, salicylic acid, etc, prices almost doubled compared to that in 2017.
The price rise is mainly due to environmental costs going higher and higher. Basic raw materials prices keep rising due to the shut-down of small factories without proper environmental protection equipment. Increasing demand for upper-stream raw materials keeps pushing API prices going higher. India is gonna take over more API market shares that China is not competitive.
4. No latest APIs, only exhibiting APIs with Chinese GMP certificates.
For chemical importers who wish to explore new API suppliers in the market, API China is not a good choice. Throughout the fair, all you can see are those conventional APIs with Chinese GMP Certificates which China is competitive. For example, certain antibiotics (Vancomycin, Amoxicillin, Teicoplanin), plant extracts (Rutin, Paclitaxel, Docetaxel, Irinotecan HCl), Steroids (Hydrocortisone, Spironolactone, Dexamethasone series, Progesterone Series, etc).
India is competitive on many chemically synthesized APIs such as Pregabalin, Olopatadine HCl, phenytoin sodium, dorzolamide HCl, Nebivolol, Modafinil, tramadol, etc. The list can go on and on.
When you importers find the offers of certain APIs from Chinese suppliers are very high, or not many suppliers in China can supply them, don’t be surprised. Try your luck in India. Those APIs that China is not competitive with, we just stop manufacturing.
The fair to attend for new molecules is CPHI Shanghai every June, where you can see the latest molecules along with APIs with Chinese GMP Certificates.