Thread by @Shrikantakolkar

The long #thread on How #China became global #antiobiotic supplier and it's effect on US. #penicillin #vitamins #generics #USFDA #chloramphenicol #WhiteHouse (1/22)

During the Civil War, #MaoZedong had seen his troops fell in large numbers by diseases like dysentery, which was fatal when penicillin was unavailable.

history.state.gov/milestones/194…

2/22.

North #China became the centerpiece of Chinese government’s larger, state-directed plan for self reliance on Chinese #antibiotics.

3/22.

Construction of state owned North China Pharmaceutical Company (NCPC) antibiotic factory in #Shijiazhuang began in 1953.

4/22.

In 1958, the company produced first batch of #penicillin, ending the China’s dependence upon penicillin imports.

5/22.

However growth came in the 1990s, through a series of partnerships and joint ventures with German, Japanese and American firms.
6/22.

#NCPC was so eager to modernize its plant that it purchased a #penicillin plant in #Neubrandenburg, Germany, and arranged to have it transported to #Shijiazhuang
7/22

By mid-90s, Chinese manufacturers were producing so much in quantities that it created domestic supply glut leading to penicillin and vitamin-C price war among them.
8/22

In 1997 Pencillin prices declined from $19/unit to $12.5/u. China’s capacity was pegged to be ~2x of world demand.

icis.com/explore/resour…

8.5/22

By 1992, it was the largest pharmaceutical manufacturer in #China exporting to 25 countries. North China was producing so huge amounts of penicillin that it paid in tons of penicillin instead of cash in one of the deal with Japanese company called #Nichimen
9/22

In Nov-96, 12 of China’s leading penicillin manufacturers formed a cartel to control supply and price. In 2003 another penicillin cartel was formed to control exports to #India. Penicillin has become a #CommodityNews

icis.com/explore/resour…

10/22

In 2004, to drive away Bristol Myers Squibb, the Chinese cartel dumped a key penicillin KSMs in the global market which led to closure of its East Syracuse plantwhich once produced 70% of America's penicillin supply.

pharmaceutical-technology.com/projects/brist…

syracuse.com/news/2013/09/b…

11/22

This plant is now converted from bulk antibiotic manufacturing to biologics manufacturing plant in 2019.
syracuse.com/news/2013/09/b…

11.5/22

The Company's environment practices at #fermentation plant has made Shijiazhuang, one of the world’s most polluted cities

sixthtone.com/news/1649/time…

12/22

In 90s American and European executives who visited the Chinese facilities, routinely rejected the claim that Chinese factories would become their competitors 13/22

In 2019, 12,462 companies in China were engaged in the export of active pharmaceutical ingredients.
14/22

China exported $7.4 billion of pharma #API and #antibiotics to the United States.

15/22

Now most drug production has moved to Inner Mongolia but Shijiazhuang is still a major pharmaceutical hub. NCPC’s old factory has been converted into a museum.

16/22

This high dependence on China has caused ripple effects in the US. USFDA officials have admitted under oath that they are often confused by locations and address in China and have sometimes inspected wrong facility.17/22

America can face the possibility of running out of essential and lifesaving medicines, like penicillin and chloramphenicol, an antibiotic used to treat infectious diseases like meningitis, plague, cholera, and typhoid. 18/22

Recently Beijing has asked its own industrial companies to purchase large quantities of medical supplies from overseas.
thetimes.co.uk/article/china-…

19/22

#WhiteHouse is now considering an executive order to tighten Buy American law to force federal agencies to purchase American-made pharma and medical supplies.

cnbc.com/2020/05/14/whi…

20/22

This however looks long shot as building a manufacturing operations and re-building supply chain, would be a gigantic effort. It also risks higher cost to the healthcare system and patients. 21/22

It looks that the global drug supply chain would see a major change.

Is #India and her pharma companies are prepared to take accept the challenge?

22/22

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