With Donald John Trump’s return to the White House, the market anticipates that the U.S.-China trade war and the “decoupling from China” policy will persist. This trend is expected to benefit specialty generic drug manufacturers and active pharmaceutical ingredient (API) suppliers. Additionally, medical device manufacturers shifting their production lines from China to Southeast Asia to align with client demands are also poised to gain momentum, potentially driving growth in 2025.
The biomedical industry believes that Trump’s “America First” policy, besides encouraging domestic production, will also focus on accelerating the approval process for generic drugs, fostering competition, and increasing price transparency to make medicines more affordable. Manufacturers specializing in innovative drug delivery systems and specialty generics are set to gain a competitive edge. Companies such as TTY Biopharm (TaiRx), Handa Pharmaceuticals, and Synmosa Biopharma, which have transitioned to hybrid pharmaceutical models or targeted original drug markets with advanced formulations, are expected to be industry leaders.
API suppliers collaborating with generic drug manufacturers, including Formosa Laboratories, SYN-TECH, ScinoPharm Taiwan, SCI Pharmtech, YUNGZIP, and Chunghwa Chemical Synthesis & Biotech, are projected to see growth in operations. Industry insiders believe that, apart from the advantages of U.S. decoupling from China, more generic drug manufacturers are likely to seize market opportunities, potentially driving order growth for Taiwanese companies.
Formosa Laboratories is preparing for the first-quarter 2025 launch of its biosimilar Eribulin, targeting a U.S. market valued at over $10 billion. Analysts forecast an initial market share of 3-5% in its first year, potentially contributing NT$500 million in annual revenue, with continued growth expected in 2026.
ScinoPharm Taiwan, aiming to expand its portfolio, plans to invest over NT$1 billion by late 2024 to acquire a 13.5% stake in Handa Pharmaceuticals through a private placement, potentially becoming its largest institutional shareholder. This investment underscores the confidence in Handa’s proven product development and commercialization capabilities. The partnership is expected to enhance ScinoPharm’s value proposition in APIs and formulations, extending into oral dosage forms.
The medical device sector is also preparing for the escalating U.S.-China trade conflict. Trump has announced a 10% tariff on Chinese goods upon taking office, with further increases expected. As a result, manufacturers are establishing production bases in ASEAN countries as a buffer. For instance, BonT has already built a facility in Subic Bay, Philippines, while Wellell produces and ships its high-end products directly from Taiwan. Additionally, General Biologicals is relocating production lines from its Suzhou, China facility to its Vietnam plant, aiming for completion by 2025.
Avita, responding to client demand, will commence construction of its new plant in Thailand in October 2024. This facility is expected to enhance industry competitiveness, reduce client tariffs, and begin mass production in the second quarter of 2026.
Resource: 美國去中化 原料藥、醫材廠搶先機 各廠布局一文看
