Global Distribution Of Generic Drug Made in China

Qilu Pharmaceutical Co., Ltd. achieved a significant milestone this year as their independently produced anti-cancer drug, "Cisplatin injection," received FDA approval and was exported directly to the United States in its original packaging. This event is regarded as a groundbreaking moment for the Chinese generic drug industry venturing into international markets. The global demand for generic drugs is substantial, with a market size of approximately 400 billion, accounting for 29% of the market, as per the 2019 IMS report. Consequently, the development and production of generic drugs have become imperative for China's domestic pharmaceutical industry.

Although China produces more than 70% of the world's apis, its finished drugs are less competitive on a global scale compared to India and Western countries. This is evident when we look at the top 20 generic drug companies approved by the FDA, which have an average of over 600 products each, with eight Indian companies alone contributing to this list. In contrast, most Chinese drug companies only have a few to a dozen products in their portfolio.

While China has made great strides in improving the quality and quantity of its drugs in recent years, its international sales performance remains below par, particularly in the European and American markets, where it accounts for a small fraction of sales. As such, Chinese drug companies are at a significant disadvantage when it comes to penetrating these lucrative markets, which have stringent regulations and high productivity standards.

The special session of the 2023 Gusu Dialogue, titled "The globalization of China's generic drugs going to the sea," is scheduled to take place on the morning of August 25. During this session, there will be comprehensive discussions revolving around the challenges and opportunities associated with the international expansion of generic drugs from China. Key areas of focus will include the establishment of global drug standards and the strategic collaboration among various Chinese pharmaceutical companies to enhance the competitiveness of high-quality drugs in the global market. We encourage you to stay updated for more exciting updates and insights from this influential event!