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    Home > Active Ingredient News > Drugs Articles > API-Preparations-CDMO is the biggest beneficiary of the "100 billion market"

    API-Preparations-CDMO is the biggest beneficiary of the "100 billion market"

    • Last Update: 2021-02-20
    • Source: Internet
    • Author: User
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    : THE status of the API industry is soaring, the layout of CDMO one-stop service has become a trend.The so-called API refers to the active ingredients in the drug, the general API needs to be added accessories, processing before it can be made into a direct use of the drug, the quality of the API will directly affect all aspects of the nature of the drug.Although it is difficult for the API industry to become the core investment main line of the pharmaceutical industry, there are still more medium- and long-term opportunities, especially in the context of the current outbreak impact on the global supply pattern of API. At present, some changes in the global API industry are worthy of our attention, and may also bring historic opportunities for domestic API enterprises.Judging from the trend trend of API in recent years, the excess income of the characteristic API industry is obvious, the growth attributes are becoming clearer, the production capacity release overlay product upgrade, ROE continues to improve, these logics are more and more recognized.Five
    characteristics, to help the rapid development of the industrythe domestic regulatory market more stringent, raw materials in the industry gradually improve the status ofAt the same time, with the introduction of consistent evaluation, volume procurement and related review policies, and constantly strengthen the position of API in the pharmaceutical industry chain, high-quality standards of specialty API for downstream preparations are increasingly important.1) In the development of new varieties, domestic specialty API enterprises to accelerate the enrichment of product pipelines, improve the competitiveness of the international market.2) Under the background of volume procurement, the specialty API enterprises quickly cut into the downstream preparation market to realize the integration of"RAW drug and preparation", and some API enterprises can also participate in the share of downstream preparation rights and interests;Industry barriers still exist, characteristics and patented API growth is highAPI is divided into bulk API, specialty API and patented API, of which the demand for bulk API is relatively stable, while the growth properties of specialty API and patented API have a qualitative improvement over the former.From the point of view of barriers, three similar API enterprises also have a large gap in nature.Bulk API: low threshold, fierce competition, and specialty API and patented API threshold is high;specialty API: core barriers are reflected in technology, heavy assets and customer stickiness, in the technical level, production process and research and development level needs to be continuously improved;patented API: industry barriers are the highest, the characteristics of various innovative drugs caused by its main rely on long-term customers to bring customized services. Of course, it is also the top of the pyramid on profitable attributes such as gross margin.In terms of customer stickiness, specialty API and patented API are closely bound with customers and basically rely on long-term customer maintenance; Thus, throughout the global profit process, the scale advantage of API in China has been basically laid, intermediate -API-preparation cost advantage has been played, global competitiveness has been greatly enhanced, low-end production capacity clearance also led to higher barriers to the sub-industry is the more important tone for future development. Production capacity gradually shifted to the domestic market with the change of industry logic, the production capacity of specialty API also gradually transferred to the Asia-Pacific region, domestic related industries ushered in a higher degree of prosperity. Perhaps the main reason is that Europe, the United States and other developed countries in the environmental protection costs, labor costs continue to rise, resulting in the balance tilted towards the Asia-Pacific region, China and India as the largest capacity undertaker. According to the relevant reports, the domestic market for specialty API is expected to reach about 5.5 billion U.S. dollars. The transfer of production capacity of global bulk API has been basically completed, while the transfer of specialty API is accelerating. Coupled with the overlay of the impact of short-term outbreaks, some variety prices may rise. And the transfer from the big countries of the API industry, will certainly have a certain impact on China's ecological environment, while the relatively cheap domestic labor force, is not only China's helplessness, but also The development of China's industry is a blessing. If you can seize the opportunity and rise up, you will not be able to meet expectations. The position of API in the industry gradually improved With the introduction of consistent evaluation, volume procurement and related review and other policies, and constantly strengthen the position of API in the pharmaceutical industry chain, high-quality standards of specialty API for downstream preparations are increasingly important, today's API in the industrial chain has been enhanced voice, and most likely with the advancement of medical insurance reform, the industry growth space is expected to open further. In addition, for the API field forward integration of preparation companies, there is hope that in the future for a long time through generic drug sales to further pressure low costs, and then through the national collection of winning bids to drive the preparation business volume. Under the trend of
    new drugs, API companies have a great future of strong joint, CDMO-API fully explains the strategic policy of 1>1>2, is expected to become one of the largest domestic innovative pharmaceutical companies strategic suppliers. Since 2019, there have been a growing number of collaborations between innovative pharmaceutical companies and generic API and CDMO. CdMO companies such as Jiuzhou Pharmaceuticals and Hequan Pharmaceuticals chose API outsourcing cooperation. Prop Pharmaceuticals and other joint reviews are more, reflecting the CDMO leader in the field of innovative RAW drugs, difficult API has a leading edge. From the medium-term point of view, the commercial production of innovative drugs involved in the field of process amplification, cost management, part of the research and development, strong production capacity of API and CDMO enterprises have innate advantages. Three trends seek development opportunities So in today's API industry, if you want to stand firm and move steadily forward, the three trends may help. Through research and development to enrich their own product pipeline, to a certain extent, can improve market competitiveness. Take Novartic as an example, the company around blood pressure, blood sugar, anti-infection and other fields layout, product pipeline continues to enrich, in the field of chronic diseases to form a combination of fists, market competitiveness significantly improved. The integration of API and preparation can greatly reduce costs, is the current focus of API and generic pharmaceutical enterprises layout direction, such as Huahai Pharmaceutical Industry, Steyrley and other API enterprises have to use the advantages of API to extend downstream preparations, with cost advantages to seize market share. Specialty API enterprises to CMO / CDMO expansion, expand the natural advantages. Just the domestic CDMO is in a stage of rapid development, many enterprises are rapidly transforming, such as Prop drug owners to shift the focus of the CDMO industry, related business revenue increased significantly. In short, from this moment on the one hand, the API industry in the main investment line opportunities increased, but also will become the future of the pharmaceutical industry in the long-term development of the choice, and related enterprises can seize the opportunity to meet the difficulties has become the key! (Mexico Pharmaceutical Intelligence Network)
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