Aug 14, 05:36 AM

China Drugmakers Pivot to Domestic Reagent Suppliers Amid Tariff Pressure

Chinese pharmaceutical research companies are accelerating a shift to domestically produced laboratory reagents as higher tariffs and delivery delays make imported supplies less attractive, industry executives told Reuters. The pivot gained momentum after Beijing raised duties on U.S. goods to 125% in April, prompting more than 90% of customers at Nanjing Vazyme Biotech to discuss replacing overseas brands, according to the company. Imports of reagents, used for quality control and diagnostics, slipped to $5.76 billion in 2024 from $5.83 billion a year earlier, United Nations data show. Local suppliers are benefitting. Broker estimates put Shanghai Titan Scientific’s 2025 revenue at 3.52 billion yuan ($490 million), up 22%, while Vazyme’s sales are projected to rise 15% to 1.59 billion yuan. Their shares have climbed 54% and 18% respectively this year, outpacing declines of roughly 21% for Germany’s Merck and 8% for U.S.-based Thermo Fisher Scientific. Analysts expect China’s reagents market to expand more than 10% annually over the next five years, supported by government backing for biotech research. Foreign manufacturers are responding by localising production. Merck is building a €70 million plant in Nantong scheduled to open next year, and Roche plans to enlarge its Suzhou reagent facility from 2028. Even with capacity moves, scientists caution that swapping reagents mid-project can disrupt drug-development timelines because regulators require material consistency, underscoring the technical hurdles facing China’s fast-growing domestic suppliers.

#Reuters #Beijing #Nanjing Vazyme Biotech #United Nations #Broker #Shanghai Titan Scientific #Vazyme #Germany #Merck #Thermo Fisher Scientific #China #Nantong #Roche #Suzhou

Written with ChatGPT .

China Drugmakers Pivot to Domestic Reagent Suppliers Amid Tariff Pressure

Sources

Additional media

Similar Stories

Similar Stories