China aims to cure its drugs lethargy



The words "made in China" have been linked to consumer scare stories in many sectors, with reports of sub-standard toys, contaminated food products and, perhaps most alarmingly of all, unsafe drugs.

A contaminant in supplies of the blood thinner heparin sourced from China was linked to 81 deaths in the US several years ago, although Chinese officials said the contamination may have taken place in the US. China itself has seen similar scares.

The pharmaceutical sector's reputation in the world's most populous nation also took a blow when corruption at the highest level was uncovered - and punished without compromise.

In mid-2007, China executed Zheng Xiaoyu, the former head of the State Food and Drug Administration, after he admitted taking millions of yuan in bribes to approve drugs.

But while acknowledged to be facing difficulties, China's pharmaceutical sector is nonetheless undergoing furious expansion and the consolidation that experts have long said is needed for standards to improve.

The average growth rate in domestic revenue over the past decade has been 20 per cent, according to a report released by the research arm of the investment bank Rodman & Renshaw.

Last year sales totalled US$138 billion (Dh506.88bn), a rise of 19 per cent on 2008. This year, growth is projected to be 33 per cent, with the sector expected to achieve turnover of $184bn.

"There is huge market potential for the development of this industry," says Liang Yimin, a senior official with the Food and Drug Administration of Jiangxi province in south-eastern China.

Parallel to its rapid growth has been a trend for this vast, sprawling sector- that features much product duplication between companies - to undergo mergers and acquisitions, as well as closures, thus reducing the number of operators.

But with about 7,000 pharmaceutical companies in China, the sector remains fragmented.

Mr Liang says Jiangxi, like other provinces, is focused on further consolidation.

"By mergers and acquisitions, we'll restructure the whole industry here," he says.

"We'll encourage the enterprises to reach to the international stage and increase our competitiveness."

Spurred on by the authorities, which introduced stricter manufacturing standards in 2004, Chinese drug makers are investing in high-technology plants to replace outdated facilities where quality control is inadequate.

"There is certainly a lot of demand [for new plants] in the market, especially in the last one or two years," says Thomas Herrman, a project manager with the German company Industry Planning and Organisation, known as i+o, which has built pharmaceutical plants in China.

"It's driven by the Chinese government. They know about the problems and want to encourage companies to modernise to fulfil the local standards, if not the foreign standards."

As well as enjoying a huge and growing market locally, China's pharmaceutical manufacturers are big players in the export of bulk drugs - pharmaceutical raw materials.

More than 90 per cent of US imports of some antibiotics originate in China. Last year, China's drug exports were worth $16.6bn, having risen by more than 20 per cent annually on average for most of the previous decade.

This export of active pharmaceutical ingredients has raised quality control concerns in the US amid recognition that it is impossible for the US Food and Drug Administration (FDA) to inspect all overseas facilities to guarantee quality. The situation has been described in the US media as "a prescription for disaster".

In November 2008, however, in an indication of the importance of China's drug export industry, the FDA opened posts in Beijing, Shanghai and Guangzhou to carry out checks on medicines, medical devices and food products.

Although making and exporting active ingredients by the container load, China has a less impressive record when it comes to pharmaceutical innovation.

A mere 5 per cent of revenue is spent on research and development, compared with 25 per cent in the US.

Too many companies, according to analysts, remain focused on producing the low-cost generic drugs instead of investing in innovation. China's lack of intellectual property rights protection has been seen as hampering research in the industry, too, although experts say the situation is improving.

Much of the pharmaceutical innovation in China has been conducted not by the country's own thousands of firms but by foreign giants. Countless internationally renowned companies, among them GlaxoSmithKline and Roche, have moved research and development operations to China. Many more have production and sales facilities in the country.

"For the time being, China will only export raw Chinese herbs and active ingredients," says Steven Du, the Shanghai general manager for SGS, a Swiss-based company that carries out drugs testing for Chinese firms.

"It's linked to the quality of the local manufacturers … quite a lot of them are not up to the international standards."

RESULTS

6.30pm UAE 1000 Guineas Trial Conditions (TB) US$100,000 (Dirt) 1,400m

Winner Final Song, Christophe Soumillon (jockey), Saeed bin Suroor (trainer).

7.05pm Handicap (TB) $135,000 (Turf) 1,000m

Winner Almanaara, Dane O’Neill, Doug Watson.

7.40pm Handicap (TB) $175,000 (D) 1,900m

Winner Grand Argentier, Brett Doyle, Doug Watson.

8.15pm Meydan Challenge Listed Handicap (TB) $175,000 (T) 1,400m

Winner Major Partnership, Patrick Cosgrave, Saeed bin Suroor.

8.50pm Dubai Stakes Group 3 (TB) $200,000 (D) 1,200m

Winner Gladiator King, Mickael Barzalona, Satish Seemar.

9.25pm Dubai Racing Club Classic Listed Handicap (TB) $175,000 (T) 2,410m

Winner Universal Order, Richard Mullen, David Simcock.

ROUTE TO TITLE

Round 1: Beat Leolia Jeanjean 6-1, 6-2
Round 2: Beat Naomi Osaka 7-6, 1-6, 7-5
Round 3: Beat Marie Bouzkova 6-4, 6-2
Round 4: Beat Anastasia Potapova 6-0, 6-0
Quarter-final: Beat Marketa Vondrousova 6-0, 6-2
Semi-final: Beat Coco Gauff 6-2, 6-4
Final: Beat Jasmine Paolini 6-2, 6-2

COMPANY PROFILE

Company name: Almouneer
Started: 2017
Founders: Dr Noha Khater and Rania Kadry
Based: Egypt
Number of staff: 120
Investment: Bootstrapped, with support from Insead and Egyptian government, seed round of
$3.6 million led by Global Ventures

COMPANY PROFILE

Company name: Revibe
Started: 2022
Founders: Hamza Iraqui and Abdessamad Ben Zakour
Based: UAE
Industry: Refurbished electronics
Funds raised so far: $10m
Investors: Flat6Labs, Resonance and various others

MATCH INFO

What: India v Afghanistan, first Test
When: Starts Thursday
Where: M Chinnaswamy Stadium, Bengalaru

The Farewell

Director: Lulu Wang

Stars: Awkwafina, Zhao Shuzhen, Diana Lin, Tzi Ma

Four stars

Our legal consultant

Name: Hassan Mohsen Elhais

Position: legal consultant with Al Rowaad Advocates and Legal Consultants.

MEDIEVIL (1998)

Developer: SCE Studio Cambridge
Publisher: Sony Computer Entertainment
Console: PlayStation, PlayStation 4 and 5
Rating: 3.5/5

A meeting of young minds

The 3,494 entries for the 2019 Sharjah Children Biennial come from:

435 – UAE

2,000 – China

808 – United Kingdom

165 – Argentina

38 – Lebanon

16 – Saudi Arabia

16 – Bangladesh

6 – Ireland

3 – Egypt

3 – France

2 – Sudan

1 – Kuwait

1 – Australia
 

Company profile

Company name: Fasset
Started: 2019
Founders: Mohammad Raafi Hossain, Daniel Ahmed
Based: Dubai
Sector: FinTech
Initial investment: $2.45 million
Current number of staff: 86
Investment stage: Pre-series B
Investors: Investcorp, Liberty City Ventures, Fatima Gobi Ventures, Primal Capital, Wealthwell Ventures, FHS Capital, VN2 Capital, local family offices

Ramez Gab Min El Akher

Creator: Ramez Galal

Starring: Ramez Galal

Streaming on: MBC Shahid

Rating: 2.5/5

UAE Warriors fight card

Main Event : Catchweight 165lb
Martun Mezhulmyan (ARM) v Acoidan Duque (ESP)
Co-Main Event : Bantamweight
Felipe Pereira (BRA) v Azamat Kerefov (RUS)
Middleweight
Mohamad Osseili (LEB) v Amir Fazli (IRN)
Catchweight 161 lb
Zhu Rong (CHI) vs. Felipe Maia (BRA)
Catchweight 176 lb
Handesson Ferreira (BRA) vs. Ion Surdu (MDA)
Catchweight 168 lb
Artur Zaynukov (RUS) v Sargis Vardanyan (ARM)
Featherweight
Ilkhom Nazimov (UZB) v Khazar Rustamov (AZE)
Bantamweight
Jalal Al Daaja (JOR) v Mark Alcoba (PHI)
Lightweight
Jakhongir Jumaev (UZB) v Dylan Salvador (FRA)
Catchweight 143 lb
Hikaru Yoshino (JPN) v Djamal Rustem (TUR)
Featherweight
Javohir Imamov (UZB) v Ulan Tamgabaev (KAZ)
Catchweight 120 lb
Larissa Carvalho (BRA) v Elin Oberg (SWE)
Lightweight
Hussein Salem (IRQ) v Arlan Faurillo (PHI)

Confirmed bouts (more to be added)

Cory Sandhagen v Umar Nurmagomedov
Nick Diaz v Vicente Luque
Michael Chiesa v Tony Ferguson
Deiveson Figueiredo v Marlon Vera
Mackenzie Dern v Loopy Godinez

Tickets for the August 3 Fight Night, held in partnership with the Department of Culture and Tourism Abu Dhabi, went on sale earlier this month, through www.etihadarena.ae and www.ticketmaster.ae.

RESULT

Bayern Munich 3 Chelsea 2
Bayern: Rafinha (6'), Muller (12', 27')
Chelsea: Alonso (45'+3), Batshuayi (85')