Active pharmaceutical ingredients, cooperation between Italy and China strengthened

At a time of uncertainty also due to the change of pace in relations between the United States, Europe and China, on which the coming and going of the announcement/suspension of duties is looming, Italian pharmaceutical chemical companies producing active ingredients and intermediates are strengthening their dialogue and cooperation with China. Yesterday, during a meeting with a delegation from the Chinese Investment Promotion Office in Hangzhou, organised by Livolsi&Partners, as part of the Action for international business programme, the president of Aschimfarma (Federchimica), Pierfrancesco Morosini, explained that 'Chinese partners are fundamental for our companies and the current geopolitical tensions do not upset us and do not upset a strong relationship between Italy and China'. Assolombarda's director of internationalisation, Chiara Fanali, added that 'the Chinese market is a market that we cannot disregard and we must foster dialogue to create opportunities for cooperation. Lombardy represents one of the most innovative hubs in the pharma industry, also thanks to the presence of a long manufacturing tradition in the sector and the presence of numerous multinationals'.

The meeting held in Milan's Palazzo dei Giureconsulti was an opportunity to open new contacts with companies in a district of China that is very much 'dedicated to innovation,' explained Sheng Xiarong, the director of the Hangzhou (Zhejiang) investment office. It was in our region that Alibaba and DeepSeek were born. We have a lot of support and funding to foster cooperation with foreign companies and we treat them all with the same metrics. So much so that there are many pharma companies that already count on collaborations with foreign partners, including Italian ones'. The confirmation comes from William Pay, strategic director of Winhealth Pharma, one of China's most innovative pharmaceutical companies with collaborations with an international roster of companies ranging from Roche to Pfizer and Zambon.

That of active ingredients and intermediates for pharmaceuticals 'is a strategic and innovative sector, a Made in Italy excellence with strong exports,' Morosini explained. A few numbers help to understand. Sales of active ingredients and intermediates for pharmaceuticals exceeded €5.18 billion in 2022 (latest available data), and are growing steadily. Exports account for 90% of the total, and among the most important markets served in first place are the United States (18%), followed by Germany (16%), Japan (7%), and India (6%). The Milan meeting attended by Italian and Chinese companies was aimed at "furthering possible relations with the Far East, in light of the fact that Aschimfarma's companies, in addition to quality, guarantee very high standards in terms of safety and protection of environmental and worker health," Morosini stressed. While Sheng Xiarong explained the opportunities opened up by the Chinese investment office, for Simest (Cdp), the head of communications, Lorenzo Berneri gave an overview of all the support for different types of investment to encourage the internationalisation of Italian companies.

Meanwhile, Livolsi & Partners, which has been present in China since 2017 with two operational offices in Hangzhou and Changshu, and the Hangzhou Investment Promotion Office have reached a strategic cooperation agreement to promote cooperation between Chinese and Italian companies on the basis of the principles of equality and mutual benefit, complementarity of advantages, sharing of resources and common development. The document outlines industrial and financial cooperation projects between Italy and China, through a specific programme called 'Action for China', in a number of important sectors, including automotive, textiles, design, and agri-food, in addition to pharmaceuticals. As Alberto Conforti, managing partner of Livolsi & Partners, explains, 'the road show organised for the Investment Promotion Office attracted a lot of interest from companies in the sector, the associations involved, and private equity funds. The signing of this memorandum of understanding aims to take forward the projects and initiatives identified'.