Siemens Medical Diagnostics announced that it is the first diagnostic reagent factory in the Asia-Pacific region in the Shanghai Free Trade Zone. The news of local production of biochemical reagents and immunoassay reagents has caused heated discussion in the industry. With the IVD giants Roche, Danaher and Siemens all setting up reagent plants in China, everyone guessed that Abbott’s diagnosis should also be considered.

Everyone is not only asking: Is it better to cooperate, acquire or build a reagent factory? The author combines his past experiences and discuss the topic with netizens. Welcome to make a brick.

Particularity of reagent development and production

Compared with diagnostic equipment, the development and production of reagents has its own uniqueness. The development and production of reagents depends on the formulation of the formulation and the control of the process in order to produce high quality products. Once the formula and process are established and matured, the convenience of transportation becomes one of the key points. The shipping agent is shipped worldwide, the freight rate is often higher than the reagent itself, and the economic benefit is extremely low. Therefore, the production of localized reagents is highly valued by the diagnostic manufacturer. Properly deploying reagent production bases around the world is one of the keys to improving the competitiveness of in vitro diagnostic manufacturers. Chinese diagnostic manufacturers mainly rely on instrument exports, and reagent exports are rare. In addition to the difference in reagent quality, the layout of reagent production bases, especially in the global context, is basically zero, which has a lot to do with it.

Common methods for reagent localization supply

In order to achieve localized supply of reagents, the usual practices are as follows:

Cooperative OEM production

It is an easy-to-use way to work with local manufacturers to localize the supply of reagents by means of OEM. I believe that the cooperation between Abbott and the Nine Strong, Roche and Nine Strongs is well known. This kind of cooperation is usually concentrated on low value-added but large-volume product categories, which can effectively shorten the registration time, shorten the delivery time and improve customer satisfaction. The drawback is that the quality control standard is more difficult to meet the requirements, especially for the international giants. In other words, the production level of local manufacturers still has a gap; the other is that the profit is very different from the self-produced reagents. Generally, the self-production capacity is over 70%, and the OEM may only be about 30-40%. When the general enterprise is not familiar with the market and policies at the beginning, it is more insurance to adopt this type of cooperation, which is worthy of reference for most domestic manufacturers to explore overseas markets.

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