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February 14, 2020

Coronavirus epicentre Hubei has 42 pharma contract manufacturing facilities

China’s Hubei province, at the centre of the ongoing Coronavirus outbreak, has the largest number of contract manufacturing facilities of the central provinces, which also include Hunan and Henan, a GlobalData PharmSource analysis shows. Hubei is home to 42 pharma contract manufacturing facilities, the majority of which are involved in small molecule API manufacture.

By GlobalData Healthcare

China’s Hubei province, at the centre of the ongoing Coronavirus outbreak, has the largest number of contract manufacturing facilities of the central provinces, which also include Hunan and Henan, a GlobalData PharmSource analysis shows. Hubei is home to 42 pharma contract manufacturing facilities, the majority of which are involved in small molecule API manufacture.

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According to the WHO, about 74% of Covid-19 infections diagnosed in China are in Hubei province as of February 8, 2020. The resulting epidemic has led the Chinese government to impose a curfew on Hubei, and to isolate the entire province from the rest of China, bringing the potential for long-term economic damage if the spread of the virus is not halted in China, we previously reported (“Coronavirus’s  Impact on Hubei’s Pharma Manufacturing Activity Is Temporary, Says Local CEO,” GlobalData PharmSource, February 2020).

Hubei’s 42 pharma contract manufacturing facilities are unfortunately concentrated in Wuhan, Hubei’s capital and the center of the outbreak. International pharma companies and CMOs such as Puracap Pharmaceutical LLC (Piscataway, NJ, US), Fresenius Kabi AG (Hessen, Germany), and Granules India Ltd (Hyderabad, Telangana) have manufacturing facilities in Hubei. Publicly traded Chinese companies involved in contract manufacturing include Hubei Biocause Pharmaceutical Co Ltd (Jingmen, Hubei, China), which is a dedicated CMO; Hybio Pharmaceutical Co Ltd; and Yichang HEC Changjiang Pharmaceutical Co Ltd (Yichang, Hubei, China).

Innovative pharmaceutical products whose APIs are manufactured in Hubei include Ipsen SA’s (Paris, France) Onivyde (irinotecan hydrochloride), a semisynthetic derivative of an alkaloid originally extracted from a Chinese tree, which is manufactured at a Hubei Haosun Pharmaceutical Co Ltd facility (Ezhou, Hubei, China), as well as  Abbott Labs’ (Abbott park, IL, US) clarithromycin, a semi-synthetic macrolide antibiotic that uses APIs manufactured at an HEC Pharm facility (Yidu, Hubei, China). Neither of these facilities are the sole API facilities for the sponsor, so this should not cause any immediate drug shortages.

Much like most other Chinese provinces, the majority of Hubei’s 42 pharma contract manufacturing facilities are involved in small molecule API manufacture. However, Hybio Pharmaceutical Co Ltd (Guangdong, China), JHL Biotech Inc (Zhubei, Taipei, Taiwan), and Wuhan Biocause Pharmaceutical Development Co Ltd (Wuhan, Hubei, China) each have biologic API facilities in the province, and Fresenius Kabi AG (Hessen, Germany) and JHL Biotech Inc are holders of facilities producing injectable medicines.

Most Chinese pharma companies are located in the country’s East or Southeast regions. The Eastern region’s pharma manufacturing industry was covered in the Emerging Market Outsourcing Report Q4 2018 and the Central and Southern provinces were covered in the Emerging Market Outsourcing Report Q2 2019.

One of the goals of stopping interprovincial transportation during the spring festival was to prevent the spread of the coronavirus epidemic. The second most infected province is Guangdong in the south, with significant contract manufacturing and approximately 1,177 diagnosed individuals at the time of publication. The provinces on the Eastern Seaboard with the most pharmaceutical manufacturing surround Shanghai: Anhui, Jiangsu, and Zhejiang. Zhejiang is the third most infected state, with approximately 1,117 people infected. Anhui has approximately 860; Jiangsu, 515; and Shanghai has only 302 diagnosed individuals. Even though Guangdong and Zhejiang currently have approximately one-thirtieth of the number of diagnosed patients as Hubei, confirmed Covid-19 cases are rapidly rising in Chinese coastal cities with far greater contributions to GDP than Wuhan. James thinks that “unlike the automobile industry” the supply chain for both the biologic and small molecule API manufacturing industry has not yet been effected. Should a shutdown be extended to these cities, the impact to both Chinese pharma manufacturing and the wider economy as a whole could be disastrous.

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Navigate your business through the ‘new normal’

COVID-19 continues to dominate headlines the world over. It has already affected our lives forever. The way we work, shop, eat, seek medical advice, and socialize will all be different in the future. Quite how different remains to be seen, but all industries must plan for multiple eventualities.  Faced with an explosion of conflicting information on how to plan and implement successful recovery strategies, decision-makers are in dire need of a single, reliable source of intelligence.   GlobalData’s COVID-19 Executive Briefing gives you access to unparalleled data and insights to successfully navigate the uncertain road to recovery across the world’s largest industries. Understand every aspect of this disruptive theme by delving into: 
  •  COVID-19 infection update, with statistics on the spread, testing by country, as well as the latest data on vaccines and therapeutic developments 
  • Economic impact overview, covering stock market indices, GDP, unemployment rates, policy responses & GlobalData’s economic recovery scorecards 
  • Sector developments, with access to sector insight summaries, cross-sector indices and the leaders and laggards in each industry vertical 
Whatever your company’s imminent strategic plans, the long-lasting impact of COVID-19 must not be overlooked. Find out how to futureproof your business operations – download our report today. 
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