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Focus on Hebei’s Two Sessions | Su Xuejun: Prioritize Active Pharmaceutical Ingredients to Secure the “Chip” of Hebei’s Biopharmaceutical Industry

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发布时间：2025-01-17

【概要描述】 “While vigorously developing the biopharmaceutical industry, we must never overlook active pharmaceutical ingredients, as they are the ‘chip’ of the biopharmaceutical sector,” said Su Xuejun, a representative to the Hebei Provincial People’s Congress and Chairman of Shijiazhuang Sihua Pharmaceutical Co., Ltd. (hereinafter referred to as “Shijiazhuang Sihua”), on January 13.

Focus on Hebei’s Two Sessions | Su Xuejun: Prioritize Active Pharmaceutical Ingredients to Secure the “Chip” of Hebei’s Biopharmaceutical Industry

“While vigorously developing the biopharmaceutical industry, we must never overlook active pharmaceutical ingredients, as they are the ‘chips’ of the biopharmaceutical sector,” said Su Xuejun, a representative to the Hebei Provincial People’s Congress and Chairman of Shijiazhuang Sihua Pharmaceutical Co., Ltd. (hereinafter referred to as “Shijiazhuang Sihua”), on January 13.

After studying the Government Work Report, Su Xuejun filled three or four pages of notes, scribbling and underlining in his bright-red notebook and even sketching out a mind map. “This year’s Government Work Report specifically emphasizes the need to strengthen the biopharmaceutical industry in its section on developing new-quality productive forces, which has further bolstered our confidence as pharmaceutical companies in pursuing integrated development across both active pharmaceutical ingredients and finished dosage forms,” said Su Xuejun. He added that some people liken active pharmaceutical ingredients to the “chip” of the pharmaceutical industry, while others compare them to its “engine”—either way, API production sits at the very upstream end of the pharmaceutical value chain. If a pharmaceutical company lacks control over this critical link, it will have little say in the broader industrial chain; not only could it face supply-chain bottlenecks, but it will also struggle to ensure consistent drug quality and keep costs under control.

Prior to the meeting, Su Xuejun conducted field research at several pharmaceutical companies across the province, focusing on the theme of high-quality development in the biopharmaceutical industry. The findings revealed that, with the exception of a handful of large enterprises that possess in-house R&D and manufacturing capabilities for active pharmaceutical ingredients, most small and medium-sized firms rely primarily on external procurement of raw materials to sustain operations.

“The biopharmaceutical sector is highly competitive, as it is a priority industry not only in Hebei but in many provinces as well,” said Su Xuejun. To prevail in this intense competition, Hebei’s pharmaceutical companies must elevate API supply to the level of supply-chain stability by expanding into the API market—particularly in the areas of specialty APIs and patented APIs—thereby securing a foothold in the upstream segment and ensuring overall supply-chain stability.

In recent years, the quality of Hebei’s biopharmaceutical industry has continued to improve. According to data from the Hebei Pharmaceutical Industry Association, from 2021 to 2023, the annual growth rates of value added in Hebei’s large-scale pharmaceutical manufacturing sector were 14.0%, 10.8%, and 6.7%, respectively—rates that outpaced those of other industries and exceeded the national average for the pharmaceutical manufacturing sector. The biopharmaceutical industry has thus become a key driver of the province’s economic growth.

Given how critical active pharmaceutical ingredients are, why do some pharmaceutical companies still hesitate to enter this field?

“The main reasons are as follows: first, the entry barrier for active pharmaceutical ingredients (APIs), particularly specialty and patented APIs, is very high, requiring robust R&D capabilities; second, substantial capital investment is required; third, the API market is highly volatile; and fourth, significant environmental protection expenditures are necessary. In addition, intensifying market competition and rapid technological advancements further discourage pharmaceutical companies from entering the API business,” explained Su Xuejun.

However, as Hebei’s biopharmaceutical industry moves toward the cutting edge and expands into international markets, active pharmaceutical ingredients (APIs) have become an indispensable and critical link. “Without robust R&D and manufacturing capabilities for APIs, local pharmaceutical companies will find it extremely difficult to compete on equal footing with global pharmaceutical giants,” said Su Xuejun. Shijiazhuang Sihua Pharmaceutical entered the API sector relatively early, establishing API production bases in Shijiazhuang and Cangzhou. In 2024, the company nearly doubled its API R&D workforce, set up a dedicated API R&D center, and forged collaborative partnerships with renowned research institutes and universities—including the Hebei Tsinghua Research Institute and China Pharmaceutical University—focused on developing specialty APIs, resulting in markedly improved innovation outcomes. In 2024, Shijiazhuang Sihua Pharmaceutical secured approval for 82 specialty formulations and API products, including 61 high-end specialty formulations and 21 specialty APIs; among these, nine new formulation varieties, such as chlorphenamine maleate injection, were the first of their kind to receive domestic approval, placing Hebei Province first in the number of approvals granted. This integrated development model—combining APIs and finished dosage forms—has yielded remarkable results.

Accordingly, Su Xuejun plans to submit a proposal titled “Suggestions on Deepening Innovation Mechanisms to Empower the High-Quality Development of the Biopharmaceutical Industry,” offering constructive recommendations on such fronts as continuously strengthening the development of innovation consortium mechanisms, increasing support for the active pharmaceutical ingredient (API) industry, and consistently enhancing policy support for innovation. “We hope that more and more Hebei-based pharmaceutical companies will enter the API sector, seize control of this ‘chip’ of the industry, and help build a stable and reliable industrial chain for Hebei’s biopharmaceutical industry,” said Su Xuejun.

(Originally published on January 13 on the Great Wall Net·Hebei Cloud Client)

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