China Loosens Grip on Contract Manufacturing of Biopharma Products

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Industry insiders believe that producers of antibody drug conjugates, a type of anti-cancer treatment, will benefit the most. Photo: Sinopharm Group

China has begun piloting a program that allows the contract manufacturing of more biopharmaceutical products, a move long-awaited by the industry that is expected to reduce costs and improve efficiency.

The pilot is the latest effort by regulators to boost the growth of the country’s pharma industry and signals their desire to further ease their grip on biologics manufacturing after a first step in 2019.

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China launched a pilot program allowing biopharmaceutical companies to outsource parts of production to CDMOs, aiming to lower costs and enhance efficiency.
The initiative supports novel biologics like multi-valent vaccines and antibody drugs and carries substantial benefits for producers of complex treatments like antibody-drug conjugates.
Challenges include competition among CDMOs and ensuring product quality, with limited impact anticipated on major biopharma companies due to their capacity to manage production independently.

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