MLBA12: December / January 2010

 

 

 

 

hina's animal drug industry started in the late eighties of the last century. By 2007, the production value of China's local ani­mal drug industries of chemical drugs, Chinese herbal medicine and bio­logical and genetic engineering drugs were valued at RMB14.539 billion, RMB4.628 billion and RMB430 mil­lion respectively. Another RMB20-50 million worth of veterinary products were imported or produced in foreign-invested plants. Total sales was in the range of RMB220-250 billion.

 

Statistics from China Animal Health Products Association (CAH­PA) show that, as of 2008, the indus­try has 1,454 animal drug producers employing some 120,000 workers and manufacturing 2000 products un­der 29 categories. Forty-five compa­nies have annual revenue of RMB100 million or higher and 33 of them were state designated animal drug produc­ers. There were 10 companies with annual revenue of RMB200 million or higher and 22 with annual revenue of RMB100-200 million. Production wise, the four provinces that housed the largest number of GMP-certified manufacturers are Shandong, Henan, Jiangsu and Hebei.

 

Although the animal drug industry has grown considerably, it is still far from being efficient. The main source of the animal drug producers' income was in fact the result of govern­ment's requirements and investment in animal disease prevention. In other words, animal drug companies that prospered without the involvement of the Chinese government were gravely lacking.

 

China animal drug industry's un­derdevelopment is also reflected in its feeble research capability. Only about 10 percent of the industry players has the capability to do research and de­velopment and less than a handful are good enough to develop new drugs independently. Most companies have neither the capital nor the resource to develop new products and would rather focus on marketing their exist­ing products or develop new applica­tions for the same product. Accord­ing to the Department of Agriculture, from 2006 to date, a total of 72 new animal drugs submitted by 54 com­panies were approved. Forty-five of these products fall into three catego­ries while one category had only three new products approved.