Centralized purchase and price reduction promote high-end characteristic APIs to meet development opportunities

[market analysis of pharmaceutical network] at the beginning of 2020, the four ministries and commissions jointly issued the promotion of APIs Guiding opinions on the green development of the industry, in which it is pointed out that by 2025, the proportion of API produced by the green process will be further increased, and the market share of high-end characteristic API will be significantly increased; the industrial layout will be more optimized, the API will basically realize the Industrial Park production, and a batch of API centralized production base will be built It is understood that API is located in the upstream of the pharmaceutical industry chain, which is the basis for ensuring the supply of drugs and meeting the drug demand of the people In recent years, the rapid development of API industry in China has played an important role in protecting people's health and promoting economic development However, due to the lack of research and development capacity of China's API enterprises in the early stage, most of API exports focus on bulk APIs (vitamins, amino acids, aminoglycosides, antipyretic and analgesic), and the problem of overcapacity has become increasingly prominent For high-end characteristic raw materials, domestic production technology is relatively backward, industrial concentration is not high, and production costs are high However, in recent years, with the consistency evaluation of generic drugs and the implementation of policies such as volume purchase, the pharmaceutical industry in China is speeding up the reshuffle Especially for the generic pharmaceutical industry, it has had a profound impact As the upstream of the pharmaceutical industry, the API industry may be expected to expand its market share by virtue of the dividend of the policy of centralized purchase and price reduction, and copy the domestic alternative import path after the drugs and devices It is reported that the pricing mode of APIs has changed greatly since the implementation of the new regulations on volume purchase In the past, as the raw material supplier of pharmaceutical plants, the cost plus method was usually used for pricing With the improvement of pricing power of API enterprises, the pricing was changed into profit sharing mode The profit elasticity space of API enterprises is increasing, and the whole market prospect is very considerable In addition, with the tightening of environmental protection, the environmental protection expenditure of pharmaceutical manufacturing enterprises has also been greatly increased, which will force some small capacity enterprises to withdraw from the market and further enhance the industry concentration Under the influence of these factors, the domestic high-end API enterprises will be expected to develop rapidly in the future, while the enterprises that fail to meet the environmental protection standards and are backward in technology will be eliminated in the market To this end, experts also said that API enterprises need to increase environmental protection investment, carry out industrial upgrading, improve technology and enhance pollution treatment capacity, so as to achieve sustainable development in future development and seize structural opportunities Some insiders said that under the regulatory requirements of gradually improving the safety and environmental protection in the field of pharmaceutical and chemical industry, the barriers to competition in the API industry are constantly increasing, and stable API production capacity has become an indispensable resource advantage for pharmaceutical enterprises to compete In the future, the competitiveness of generic drugs will largely depend on the cost of APIs Companies with the integration of APIs and preparations will gain advantages in the subsequent market competition