CHINA HEALTH SCIENCES NEWSLETTER
Vol. 4 , No. 8 - May 13, 2003
TOPICS THIS ISSUE:
- SARS - China could see first annual trade deficit since 1993
- Study Shows SARS Not Mutating
- China's Antiobiotics Industry in 2003
- Malaysia's Ramatex joins Singapore's Hyflux in China biotech project
- Sales of U.S. Company's Drug Rise as Chinese Try It Against SARS
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SARS - China could see first annual trade deficit since 1993
China could report its first annual trade deficit in a decade this year because of the impact of Severe Acute Respiratory Syndrome (SARS) on the economy, the China Daily reported citing Chinese economists and trade experts. China already reported its first quarterly trade deficit in six years for the Jan-March quarter on surging imports and increased prices of oil and other commodities.
But economists told the paper that the impact of SARS could exacerbate the deficit, although it will be nowhere near the last annual deficit China recorded in 1993, which came in at USD12.2 bln. If SARS can be "eliminated" by July, the trade deficit will be around USD2-3 bln for the whole year, after peaking at USD5.0 bln in the May-July period.
On the other hand, other researchers have predicted that the deficit could be even higher than USD2-3 bln because of the impact of huge imports of medical equipment and medicines to fight SARS. China has set up a 3.5 bln yuan fund to fight SARS and put in place a nationwide disease prevention and control network. An official from the China National Medical Equipment Industry Corp, an import-export trading house formerly under the Ministry of Foreign Trade and Economic Cooperation, told AFX-Asia recently it has already ordered more than 1,000 respirators from overseas.
(Source: AFX News)
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Study Shows SARS Not Mutating
A study published on May 11, 2003 suggests that the SARS virus is surprisingly stable and not mutating significantly - a finding that could indicate the virus may have been in humans for a while.
In the first major analysis of mutations of the SARS virus, posted on The Lancet medical journal's Website, scientists from Singapore's Genome Institute identified genetic differences that reveal two geographically distinct strains of the virus - signatures that could help in tracing where an individual's SARS strain originated. Although the virus is not mutating into a more virulent form, it is also not becoming more benign. The virus is seeming quite constant as it is passing through people.
If the virus remains stable, any vaccine created is likely to stay useful. The findings have also suggested that the SARS virus may have been in humans longer than thought.
(Source: Shanghai Daily)
China's Antiobiotics Industry in 2003
2003 is likely to see greater competition amongst producers of hemi-synthetic antiobiotics, as output increases. China's domestic consumption of penicillin industrial sales stood at around 14,000 tons in 2002 - if the amount exported could be kept at 8,000 tons, demand and supply would be in balance. In 2003, the country's production capacity in penicillin industrial sales should reach 28,000 tones, so if export reaches 12,000 tons, there would be no major fluctuation. If export cannot be increased, dumping is likely to occur again. In addition, as production of penicillin through fermentation consumes large amounts of energy, the cost of penicillin production will rise in 2003 for two reasons:
1. the higher prices for water and coal; and
2. as environmental protection requirements become stricter, germ dregs can no longer sold as fodder, and this will also drive down the profitability of penicillin.
In 2003, hemi-synthetic antibiotics products will continue their rapid growth, with the average expected to be over 20%. The huge market potential will encourage manufacturers to increase investment and expand production. Alliances, mergers, restructuring and the introduction of overseas capital will lead to marked changes in the style of competition.
(Source: BizShanghai)
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Ramatex Bhd has joined a Hyflux Ltd subsidiary to form a joint venture in Singapore to own and operate a biotechnology manufacturing facility in China. Ramatex intends to invest USD3.36 mln in the venture known as Sinolac (Singapore) Pte Ltd. It will hold 45% while Hyflux unit Hyflux Engineering Pte Ltd will have 19.5%. It did not identify any other partners.
Hyflux is listed in the Singapore Stock Exchange and specialises in membrane technology and water treatment. Ramatex said the biotechnology manufacturing facility in China is scheduled to be operational after the second quarter of 2004. It has yet decided where in China the facility will be located.
The plant will produce organic polymers and manufacture raw material for biodegradable and better-performance textile fibres. Ramatex said the investment is part of the group's backward integration of its core business activities and efforts to develop new products for the next generation fibres to sustain its competitive edge in the textile and apparel business.
Sales of an antiviral drug, Zadaxin, produced by SciClone Pharmaceuticals of San Mateo, California, are surging because doctors in China are using it in an attempt to contain the widening outbreak of SARS.
Zadaxin is approved in China to treat hepatitis B, though it is not approved for use in the United States, Europe or Japan. There seems to be little proof that it is effective against SARS. But doctors are trying it amongst other drugs.
The company's contract manufacturers were increasing output but might still not be able to keep up with demand. SciClone is also providing the drug to be tested by United States government scientists, who are screening thousands of compounds in hopes of finding some that may work against SARS.
Several biotechnology companies have experienced sharp, though often brief, increases in their stock prices because of statements or evidence that their drug or technology may be useful against SARS, which has killed more than 400 people worldwide and sickened thousands.
Zadaxin is a synthetic version of a peptide -- a small protein -- called thymosin alpha-1, which exists naturally in the human body and appears to stimulate the immune system. While there has been some evidence that Zadaxin works for hepatitis, there have been setbacks -- like in a trial conducted in the early 1990's in the United States that found Zadaxin little better than a placebo in treating hepatitis B.
Xu Daozhen, a doctor at Beijing Ditan Hospital, said in a telephone interview arranged by SciClone that he was trying Zadaxin because studies showed it could increase production of certain T-cells, which are depressed in SARS patients.
