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    Home > Active Ingredient News > Drugs Articles > China's API prices soared, the industry said that more measures should be taken to "cure"

    China's API prices soared, the industry said that more measures should be taken to "cure"

    • Last Update: 2018-08-09
    • Source: Internet
    • Author: User
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    [market analysis of chinapharma.com] phenol rose 99 times from 230 yuan / kg to 23000 yuan / kg; chlorphene rose 58 times a month from 400 yuan / kg to 23300 yuan / kg; inosine rose to 600 yuan / kg in July this year, five times in three years; amino acids also began to show a jump increase since the end of last year, among which tryptophan rose from 66 yuan / kg to 115 yuan / kg Recently, the media revealed that the price of APIs has skyrocketed How to "cure" the skyrocketing price of APIs (picture from chinapharma Com) why are APIs skyrocketing? For the rise of API prices, the industry said that the main reason is monopoly At present, the prices of some APIs in the market are soaring In addition to the rising cost of raw materials and other factors, there are obvious signs of monopoly and joint price hike caused by human manipulation According to the insiders, there are 1500 kinds of APIs in China, but their production is in the hands of a few manufacturers, and there are few raw material approvals but more preparation approvals Among them, only one enterprise can produce 50 kinds of APIs, only two enterprises can produce 44 kinds of APIs, and only three enterprises can produce 40 kinds of APIs In addition, with the increase of national environmental protection, a number of small and medium-sized API enterprises have been gradually eliminated, which further increases the monopoly of API In addition, according to the results of the corresponding proportion sampling survey of API to pharmaceutical manufacturers, one API enterprise corresponds to 169 pharmaceutical enterprises, which shows its dominance over the pharmaceutical market "When the production of API forms a de facto monopoly, the soaring price naturally has a realistic support." Some insiders said Monopoly or the main reason for the soaring prices of APIs, but there are also people in the industry who question this Since the demand for these APIs is so strong and profitable, why only two or three enterprises produce them? Since the price of domestic APIs is sky high and the shortage is serious, why can't foreign affordable APIs enter China and stabilize the market price? How to "cure"? API is the intermediate of medicine and indispensable material Once the supply is cut off, the pharmaceutical factory cannot continue to produce it However, some monopolistic behaviors have damaged the normal trading and order of API market, harmed the production and supply safety of many drugs, and harmed the vital interests of consumers In this regard, it is suggested that anti-monopoly law enforcement and supervision should be carried out in accordance with the law to break the monopoly trading chain and curb the unreasonable price rise of APIs On this basis, we need to remove unnecessary administrative barriers, eliminate the approval dependence of API production from the source, make the API market supply and competition more sufficient, so as to eliminate the false high price caused by monopoly, guarantee the supply of API, and reduce the burden of pharmaceutical factories and patients In addition, some industry insiders pointed out that behind the shortage of raw materials or finished drugs for some drugs, it is fundamentally due to the distortion of market mechanism Therefore, to bid farewell to the shortage of drug supply, we should rely on the full opening of the market and the continuous deregulation of the control However, it is not the fundamental policy to rely on strengthening administrative control and wielding the punishment stick to solve the price increase For example, in December last year, the administrative measures for the joint review and approval of APIs, pharmaceutical excipients and drug packaging materials and pharmaceutical preparations (Draft for comments) began to solicit public opinions, which means that in the future, the approval of APIs will be "untied" and no approval number will be issued separately, which may be the fundamental strategy to change the monopoly of APIs The industry also pointed out that similar to chlorpheniramine is a very common bulk API, which is produced by many foreign manufacturers China can also activate the market by importing the API, the "catfish" Experts said that the soaring price of APIs has lasted for many years If we want to "cure" them, we need not only the courage to rectify the chaos, but also the wisdom to adjust the production market structure of the pharmaceutical industry from the source.
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