August 15, 2025

China's pharmaceutical research firms are shaking up their buying habits! According to insiders, Chinese companies want to buy critical lab supplies known as reagents from local manufacturers more than ever. Why? To slash costs and speed up delivery. These reagents are special compounds used in lab tests to analyze medicines and control quality. For years, Western giants like U.S.-based Thermo Fisher Scientific and Germany's Merck have dominated China's huge pharma market. But things are changing fast. Rising import taxes due to the US-China trade war and long-term worries about costs and availability are making Chinese firms favour homegrown suppliers such as Shanghai Titan Scientific and Nanjing Vazyme Biotech. The change is clear! China's reagent imports were valued at $5.76 billion in 2024, dipping slightly from $5.83 billion in 2023. Ma Xingquan, co-president of ChemPartner PharmaTech, said, "It is actually more advantageous (for reagents to be local) because the timeliness requirement is high." Most of their pre-clinical reagents come from local firms like Titan and Shanghai Aladdin Biochemical Technology. Ma added that "ChemPartner's usage of locally made reagents would probably increase further as new products become available." What kicked off this shift? In April, China hiked import duties on U.S. goods to a staggering 125%. Though some tariffs have eased with ongoing talks, the shock was real. Yang Dong, a product manager at Titan, said some drugmakers worried about this tariff rollercoaster. Vazyme’s Senior Vice President Xu Xiaoyu revealed, "Since April, more than 90% of Vazyme's customers have discussed replacing imported reagents with its products." He continued, "To customers these tariffs are like a shock in a short period of time. They clearly felt this type of direct impact... their impetus (for replacement) will be stronger." The numbers back this up. Titan is forecasted to see 22% revenue growth to 3.52 billion yuan ($490 million) this year, while Vazyme expects a 15% jump to 1.59 billion yuan, says Soochow Securities. Shares have jumped 54% for Titan and 18% for Vazyme in 2024, while Merck and Thermo Fisher's shares dropped 21% and 8% respectively. Experts predict China's reagent market will grow over 10% annually in the next five years. This surge is powered by government backing, expanding biotech labs, and more diagnostic testing. Western firms are not standing still. Merck is investing 70 million euros ($81 million) in a new Chinese plant opening next year in Nantong. Roche is boosting factories in Suzhou from 2028 to meet growing local demand. However, switching reagents isn't easy. Changing products after regulatory approvals can disrupt drug development, warns RNA expert Huang Linfeng from Duke Kunshan University. Plus, local makers may face tech hurdles as some processes or equipment remain protected or unavailable, says Cheng Shaojun from Fu Chen Chemical Reagents. The reagent race is heating up in China’s pharma scene. Will local champions fully dethrone Western giants? Time will tell, but for now, Chinese firms seem all in to keep their labs buzzing with homegrown chemicals!

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Tags: China pharmaceutical, Reagents market, Trade war, Import tariffs, Local manufacturers, Merck, Thermo fisher,