China set to give a big boost to biologics

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China set to give a big boost to biologics

Home/Policies & Legislation | Posted 24/09/2010 0 Post your comment

According to a report in a Chinese newspaper, China is planning to spend more than CNY 10 billion (US$1.5 billion) to support the development of new drugs between 2011 and 2016. Biotechnology was identified as one of seven emerging industries that China will use to spearhead the next big step in its economic development.

“The development plan for the industries has been submitted to the National Development and Reform Commission and may be announced as soon as the end of this month”, the newspaper reported.

This is not the first time China has stepped in to boost its biotechnology industry. Back in March 2009 the Chinese government announced plans to spend at least CNY 62.8 billion (US$9.2 billion) by the end of 2010 on 11 national research programmes (including biotechnology) to achieve breakthroughs in key technology development.

China is continuing to be attractive as a place to outsource active pharmaceutical ingredients (APIs). Boehringer Ingelheim is the latest in a line of Big Pharma to open a centre in China in order to optimise API and chemical intermediates sourcing.

However, how long China’s appeal will last as reduced tax rebates, correction of the currency rate and increasing wages chip away at China’s cost advantage remains to be seen.

References

21cbh.com [homepage on Internet]. [Accessed 2010 September 9].

China to invest billions on key technology development, bio industry.

National Development and Reform Commission (NDRC). People’s Republic of China [homepage on Internet]. [Accessed 2010 September 9].