Prices of active pharmaceutical ingredients and intermediates from China have gone up significantly, piling pressure on Indian and Western companies that rely on it for supplies. Some firms are scrambling to draw up a plan B to secure supplies as the Asian giant weeds out polluting units and ups compliance.

SHANGHAI - When China's state-run television uncovered dangerous levels of pollution at a pharmaceutical plant in the Northern Chinese province of Harbin last week, a spotlight was thrown on polluting practices within the country's pharmaceuticals industry. Now, as authorities move to improve the enforcement of existing regulations, it is likely that more companies will be forced to clean up their act

Pfizer Inc. and Shanghai-based Zhejiang Hisun Pharmaceuticals announced June 2 a memorandum of understanding to potentially establish a joint venture to develop, manufacture and sell branded generics in China and other markets