Market demand is booming Chinese and foreign companies to dig up vaccine "treasury"
The period from September to November each year is considered the optimal time for flu vaccination. Since August, both domestic and international companies have been actively promoting influenza vaccines, with public data indicating a strong and growing vaccine market in China.
The vaccine market presents a huge potential, but it also faces significant challenges. One of the key issues has been the insufficient production capacity of vaccines in China. According to Shen Xinliang, an analyst at Guojin Securities, the domestic vaccine market is experiencing strong demand, projected to grow by around 15% annually. In 2007, the market size reached approximately RMB 3.2 billion, and in 2008, the government expanded its immunization program, allocating 2.5 billion yuan to purchase 14 types of vaccines. Despite this, there remains a large gap between demand and supply. For example, in 2007, the demand for the red blood cell vaccine was 63.88 million person-times, while domestic production could only meet 18 million, leaving a shortfall of 45.79 million person-times.
Dr. Yang Yujing, director of industrial business at GE Healthcare’s Greater China Life Sciences Department, noted that the global vaccine industry faced a downturn in the 1980s but has since rebounded with impressive growth. This resurgence is driven by technological innovations in combination vaccines, as well as breakthroughs in DNA vaccines, HIV vaccines, cardiovascular disease vaccines, and cancer vaccines. Over the past 20 years, the availability of new vaccines has boosted the global vaccine market by more than ten times, while drug sales only increased fivefold during the same period.
In response to the favorable market conditions, both domestic and foreign companies are making strategic moves. Novartis entered the influenza vaccine market as early as 2006. When asked about potential shortages due to a pandemic, Novartis China president Li Zhenfu assured that the company would prioritize supplying the Chinese market. Similarly, Sanofi-Aventis has increased its ambitions in China, planning to sell 25 million seasonal flu vaccines annually once its Shenzhen factory begins operations in 2012. Wyeth, known for its infant formula, is preparing to launch its first vaccine product in China: an infant pneumococcal vaccine. The company has completed clinical trials and is currently in the registration phase.
GE Healthcare also recognized the potential of the Chinese biopharmaceutical market and established the FastTrak Technology Center in Shanghai in 2006, the first downstream biotech center set up by a multinational company in China. According to Xia Dawei, the center provides biopharmaceutical companies with purification process development, training, and certification. These technologies are essential for vaccine and biologic drug production. Many Chinese vaccine companies rely on GE’s purification solutions. Additionally, GE’s disposable biopharmaceutical processing products offer cost-effective and faster alternatives for new vaccine manufacturing.
Xia Dawei added that the global biopharmaceutical market has reached $6.3 billion, but China accounts for only $60 million, with the downstream purification market being less than $20 million. This highlights a vast opportunity for growth. With the implementation of the “Expanding National Immunization Program,†Chinese vaccine companies are expected to see significant market expansion. Major players such as China Biotechnology Group, Beijing Kexing Biological Products, and others are poised for growth. Some companies, like Beijing Tiantan Biological Products, are planning to build new factories to increase production capacity. Currently, there are 43 vaccine manufacturers in China, producing 41 types of vaccines that protect against 26 infectious diseases, with annual output exceeding 1 billion dose units.
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