Chinese pharmaceutical firms’ cost advantages trump Pentagon blacklist: analysts

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Chinese pharmaceutical firms’ cost advantages trump Pentagon blacklist: analysts

The Pentagon added Chinese pharmaceutical contractor WuXi AppTec to a list of entities it alleges are linked to the country’s military, but the blacklisting will not stop multinational drug makers from collaborating with China’s biopharmaceutical firms, according to analysts. “We view minimal impact given multinational [companies] in pharma still prefer made-in-China for cost efficiency,” said Cui Cui, head of healthcare research for Asia at Jefferies. “Meanwhile, Wuxi AppTec

The Pentagon has added Chinese pharmaceutical contractor WuXi AppTec to a list of entities allegedly linked to the Chinese military. However, analysts predict this blacklisting will not significantly deter multinational pharmaceutical companies from continuing their collaborations with Chinese biopharmaceutical firms. The primary driver for these partnerships remains the cost-efficiency advantage of manufacturing in China. Companies like WuXi AppTec are expected to maintain their business relationships due to these economic benefits.

This situation highlights the complex interplay between geopolitical concerns and global supply chain economics in the pharmaceutical industry.

#health#drug#research#app

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