API competition will be the key to the survival of generic pharmaceutical enterprises

[pharmaceutical network market analysis] recently, the newly released notice of the leading group of the State Council on deepening the reform of the medical and health system on further promoting the experience of deepening the reform of the medical and health system in Fujian Province and Sanming City shows that in 2020, the scope of centralized procurement and use of drugs by national organizations will continue to expand In fact, under the guidance of relevant departments, 26 provinces have participated in the expansion of volume procurement and joint bidding in Shanghai Up to now, 11 cities including Beijing, Shanghai and Tianjin have been expanded to 31 provinces, autonomous regions and municipalities directly under the central government Such a large-scale expansion has begun to bring a series of significant impacts to the pharmaceutical industry For example, in the field of chemical generic drugs, because consistency evaluation is a hard standard for participating in volume procurement, most of them are destined to become large-scale products rather than high profit products Therefore, some insiders also said that the expansion of "4 + 7" volume procurement is leading China's chemical generic into an era of high quality, low price, large-scale and low profit In fact, the financial cost, labor cost, production cost, warehousing and logistics cost of the generic pharmaceutical based enterprises are almost the same The place that can let the enterprise form competitive advantage is almost only on the API Therefore, the competition of generic drugs will focus on the competition of APIs in the future At present, it has become the general trend in the industry Many pharmaceutical companies that want to continue to do in the field of generic drugs are speeding up the distribution of APIs for main products or participating in the bulk purchase of pharmaceuticals For example, on September 4, Jiuzhou pharmaceutical industry announced that in order to further expand cdmo business, the company plans to acquire Suzhou Novartis Pharmaceutical Technology Co., Ltd., a wholly-owned subsidiary of Novartis group, with a transaction value of 790 million yuan After the completion of the transaction, Novartis Suzhou will continue to upgrade to ensure that it can meet the needs of customized projects, and become a commissioned R & D and production base for APIs and intermediates with advanced environmental health and safety system, quality system and operation system On September 23, Beijing New Pharmaceutical Co., Ltd announced that it and Weifang Binhai Economic and Technological Development Zone Management Committee of Shandong Province (hereinafter referred to as Binhai Management Committee) signed the contract for the production base project of the whole industrial chain of medical health, and planned to invest 4 billion yuan to build the production base of the whole industrial chain of medical health in Binhai Economic and Technological Development Zone According to the contract, in the first phase of the project, a production line with an annual output of 4820 tons of pharmaceutical APIs and intermediates will be built, and when the conditions are ripe, a production line of pharmaceutical preparations will be built Beijing new pharmaceutical said the move is mainly to invest in the new API production base and enhance its market competitiveness in APIs and pharmaceutical intermediates On November 22, Jingfeng pharmaceutical announced that it had signed a strategic framework cooperation agreement with Zhongheng group and decided to establish a strategic partnership The announcement shows that the cooperation is in line with the development strategy of Jingfeng pharmaceutical, and is conducive to further cooperation and sharing between the two sides in the fields of APIs, chemicals, generics and so on According to the data, China is a major producer and exporter of APIs Currently, it can produce more than 1500 APIs and intermediates, accounting for 27.7% of the global generic API market In 2017, the export of APIs reached 8.9615 million tons, a record high, with a year-on-year growth of 8.33%; the average export price bottomed out and rebounded, with a year-on-year rise of 4.96% It is predicted that this upward trend will continue to increase in the future In general, China's API industry is booming, and both the overall market share and exports are showing an upward trend With the expiration of global patent medicine concentration, China's API is likely to usher in a rare period of rapid development in the future During this period, more enterprises may join in the layout of API field.