Chinese pharmaceutical companies are increasingly sourcing laboratory reagents from domestic manufacturers to cut costs, reduce delivery times, and avoid potential tariff uncertainties, industry executives revealed.
Reagents, essential compounds for lab testing and quality control, have long been supplied by Western firms such as Thermo Fisher Scientific (U.S.) and Merck (Germany).
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However, rising import tariffs during the U.S.-China trade tensions, including a temporary 125% duty on U.S. goods in April, have accelerated a shift toward Chinese suppliers like Shanghai Titan Scientific, Nanjing Vazyme Biotech, and Shanghai Aladdin Biochemical Technology.
According to ChemPartner PharmaTech’s co-president Ma Xingquan, timeliness and cost-effectiveness make locally produced reagents increasingly attractive. Titan and Vazyme executives noted that since April, more than 90% of their customers have discussed replacing imported products with domestic alternatives.
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Analysts forecast strong growth for Chinese reagent makers in 2025, with Titan’s revenue expected to rise 22% and Vazyme’s 15%. Meanwhile, shares of both companies have surged, while Merck and Thermo Fisher stocks have declined.
Despite the trend, experts caution that switching suppliers mid-development poses regulatory challenges due to the need for material consistency. Still, with government backing and robust demand in biotech, R&D, and diagnostics, China’s reagent market is projected to grow over 10% annually for the next five years.
