b - Lactams Pharmaceuticals Production in China

 

 

 

 

 

 

Released date: June 2006

 

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Updated in Dec 2001

 

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Being old items, b-Lactams have been widely used in China for many years.  Till today, they are the most favorable medicines to Chinese people for their effective actions toward bacteria.  Recent year, China saw the rapid but disordered growth of beta-lactams production.  The present report is to reveal some fact about this industry in China.

 

1.       Brief Introduction to b-Lactams Production in China

 

From Chemical Formula point of view, b-Lactams pharmaceuticals can be classified into

 

-          penicillins (including fermentation penicillin and semi-synthetic penicillin)

-          cephalosporins

-          non-typical ¦Β-lactams

 

They are similar in chemical structure and are effective in inhibiting the growth of bacteria.  Because of low toxicity and wide spectrum toward bacteria they are widely used in clinical therapy. 

 

The production of b-lactams in China started in 1953 in Shanghai No.3 Pharmaceutical Factory.  After half a century‘―s development, b-lactams have become the second largest antibiotics items, listed after tetracyclines.    By end of 1999 China can produce over 22 kinds of b-lactams. Among the 17 antibiotics that are produced in large quantity in China, 12 of them are b-lactams.  Among the 42 supplemented antibiotics listed in the National Basic Pharmaceuticals, b-lactams account to 24. In year 2000, China has published the category for reimbursed medicines. Among the 62 antibiotics items, 33 are b-lactams. 

 

The production of this kind of antibiotics has been increasing in the past few years, as shown in  the following table.

 

Table 1. Production of b-Lactams 1996-1998 (Unit: Mt)

Species/year

1996

 1997

1998

Penicillins

  4,847.449

  5,954.391

  6,217.000

Cephalosporins,

    152.555

     209.004

     413.120

Non-typical b-lactams

        4.774

        3.125

      27.080

 

Table 2.  Production percentage of b-Lactams among the antibiotics

Year

Fermentation penicillin

Semisynthesis penicillin

Cepharolosporin

Non-typical¦Β-lactams

1980

9.86%

0.38%

0.006%

N/A

1987

8.85%

1.08%

0.014%

N/A

1996

10.11%

3.93%

0.44%

N/A

1998

11.63

5.92%

1.17%

N/A

Note: N/A‘ͺnot available

 

At present the production capacity of b-lactams is around 10,000Mt/year, over 80% are penicillins series. The rest are semisynthesis penicillins, cephalosporins, and non-typical b-lactams.

 

It should be pointed out that although b-lactams that are widely used in China, some b-lactams that are powerful in clinical therapy still rely on the imported products. E.g, about 15 kinds of antibiotics are imported each year, 9 of them are b-lactams. This means that China is weak in the production of these imported b-lactams.

 

 

2.      How is b-lactams Market shared in China

 

The present Chinese Market of b-lactams is shared by the following participants:

 

-          The domestic manufacturers

They are sharing most part of penicillins market.  These penicillins are favorable for their cheap price.  Over tens of years of development, the production of penicillins increased from nil to oversupply.  But unfortunately the domestic manufacturers still can not make an agreement to control the market in good order.  There is almost no rule for these manufacturers.  A large number of manufacturers are competing each other by lowering the price of penicillins, in order to share the ever-decreasing cake. 

 

This situation has arisen the attention from higher level of Chinese government.   The China Pharmaceutical Industry Association called on the main penicillins manufacturers in China, together with some officers from central government, in mid 1999, to discuss how to control the penicillins market as a whole. The proposal includes to fight the smuggling products and to stop issuing the license for production of penicillin, amipicillin, etc.  All these actions are to stop the vicious competition among the Chinese manufacturers and to develop the high value b-lactams instead of the low value products.

 

Recent years Chinese manufacturers began to develop cephalosporins and non-typical b-lactams, which are mainly dominated by foreign companies.  With the improvement on the technology in producing penicillins, especially fermentation penicillin, nowadays it is possible for China to develop the semi-synthesis penicillins.  That means that the competition of b-lactams has extended from fermentation penicillin in the past to semi-synthesis penicillins nowadays, from cephalosporins raw to semi-synthesis cephalosporins, until to a whole range of b-lactams.

 

-          The joint ventures in China

From the very beginning these joint ventures aimed to occupy the b-lactams product that required high production technology but are not available in the domestic manufacturers, like second generation cephalosporins and non-typical b-lactams.  The joint ventures in China, especially those joint ventures that import raw material and convert into preparation and sell it at high price to Chinese hospital, intensified the competition of b-lactams market in China. 

 

-          The imported b-lactams from oversea manufacturers

Every year there is large quantity of penicillins entering China every year, legally or illegally.  This situation is very obvious to some semi-synthesis cephalosporins.  According to the statistics from customs, total import value of 6-APA, 7-ADCA, 7-ACA amounted to USD133.7 millions in the first half year 1996.  This figure did not include the smuggled ones. Although China has ability to produce 6-APA and cefalexin, cefazolin, there are still a large number of imported products appearing in China, because the competing ability of Chinese material is still weak. On the other hand, a lot of Chinese importers would rather spending a lot of foreign currency to import foreign products, just to meet the irrational consumption ideology of some Chinese people, especially those living in the large cities, who hold that foreign products are better than the Chinese products.  This phenomenon worsens the already poor market for Chinese manufacturers. 

 

 

3.      Penicillins production in China

 

1)      Overall situation of penicillins production in China

 

New China is the biggest penicillin manufacturer in the world.  The total fermentation capacity of penicillin is over 15,000Mt/year. By end 1998 there were about 12 kinds of penicllins produced in China. These penicillins can be classified as follows:

 

-          penicillin series, including fermentation penicillin, penicillin G. Potassium, Penicillin G. Sodium, Procaine penicillin G., penicillin V potassium and long-acting procaine G.

-          Semisynthesis penicillins, including ampicillin, benzocillin, amoxicillin, piperacillin, etc.

 

For nearly half a century, penicillin has always been widely in clinical therapy and been considered as an important and effective drug in China, whether in cities or in the countryside.   Being the first antibiotics produced in China, fermentation penicillin has become one of the biggest antibiotics item nowadays. It is reported that in 1997, about 3,000-4,000 Mt of the fermentation penicillin was turned into penicillin G. sodium/potassium , 2,600Mt of which were exported to the oversea market.    The production of penicillin G. in 1998 was 6,538Mt and 8,500Mt, repectively. In 1999, about 3,000Mt of penicillin G was exported.

 

So far the biggest penicillin manufacturers in China include

-          Northern China Pharmaceutical Group

-          Shandong Lukang Pharmaceutical Company

-          Harbin Pharmaceutical Factory

-          Shijiazhuang Pharmaceutical Group Company

 

These three manufacturers almost produced about 3200 Mt of penicillins in 1998, occupying over 50-70% of the total production in China.  It is estimated that the present capacity in these four manufacturers accounts to 75.4% of the total production capacity in China.

 

As a matter of fact, the penicillins are oversupplying nowadays, especially fermentation penicillins.  It is expected that the present capacity of some fermentation penicillins can meet the demand in the future ten years.  These penicillins include penicillin G. sodium, ampicillin, and amoxicillin.

 

Recent years the China has developed fast in the production semi-synthesis penicillins.  The production of semi-synthesis penicillins has increased from about 200 Mt in 1994 to 1000 Mt in 1996, till about 1600 Mt in 1998.  The big items of semi-synthetic penicillins include ampicillin and amoxicillin. The production of amoxicillin in 1999 was 1,158Mt.

 

Among the production of semi-synthetic penicillins, 6-APA is an important intermediate. At present the production capacity of 6-APA is 3,000Mt/year.  The active manufactures of 6-APA include

-          Shandong Xinhua Pharmaceutical Group Co. Ltd.

-          Harbin Pharmaceutical Factory

-          Shandong Lukang Pharmaceutical Factory

-          Hebei Pharmaceutical Company

-          Sichuan Pharmaceutical Factory

-          Dongfeng Pharmaceutical Factory

 

The improvement in China shows it begin to get ride of the reliance on foreign semi-synthesis penicillin.  As it needs much more money to do the R&D work and only those large pharmaceutical manufacturers have ability to do research, there is a long way to go for Chinese manufacturers to go in the future. 

 

The character of Chinese penicillins production  is

-          The product species are not as various as in developed countries. Still, and as for many year, the Chinese penicillins cover penicillin G. sodium or penicillin G. potassium, ampicillin and procaine penicillin G.

-          The production  of semisynthesis is rather small.  The development for semi-synthesis products step behind foreign countries.  The main reason is that the domestic manufacturers lack the enough money to do R & D .  In the past, attracted by the large demand for penicillin in China, many manufacturers introduced the same set of production  line  in the same period.  It was hard for them to digest the technique sufficiently.  The result is that many factories have the same facilities but many facilities are idled.

-          There are no acquiescent rules among Chinese manufacturers.  They compete each other severely by lowing the selling price. This situation is obvious during the export.  This gives the chance for foreign buyers to bid more.  Some domestic manufacturers sold penicillins at deficit in order to gain the order.  The vicious competition led to the sharp drop of the price of penicillin in 1997.  Some small manufacturers were forced to stop and driven out of the market. 

-          Now nearly all of the penicillins in China are consumed in China.  The export quantity is relatively small.  If there were export, it is pertinent to fermentation penicillin/salts.

 

Table 3.  The production of penicillins during 1996-1998 (unit: Mt)

Product name/year

1996

1997

1998

Capacity in 1998

Penicillin G. Sodium

2,940.733

3,442.874

3,357.690

4,310.100

Penicillin G. potassium

548.966

530.014

679.020

6,453.000

Penicillin V. potassium

0.000

47.066

82.560

N/A

Procaine penicillin G.

246.510

376.243

206.550

2,087.040

Longacting penicillin G.

25.038

22.033

23.060

N/A

Ampicillin

962.432

1,062.403

1,091.1601

2,066.000

Oxacillin

54.286

35.848

62.980

85.000

Carbenicillin

1.348

24.000

0.300

N/A

Ekavacillin

0.821

1.630