Famous pharmaceutical companies shut down a production line due to anti drug restrictions and environmental factors

Yan'an Bikang announced that due to factors such as anti drug restriction and environmental protection, a product line of its subsidiary was shut down, which, to some extent, is a small epitome of the domestic API industry On November 19, Yan'an Bikang announced that the company held a meeting on November 18, 2019 to consider and approve relevant proposals The company decided to shut down Jiujiu technology 7-ADCA product line and Jiangsu Jianding Biotechnology Co., Ltd (hereinafter referred to as "Jianding technology") to ensure the continuous operation and healthy development of Jiujiu Technology It is understood that 7-amino-3-deacetoxycephalosporanic acid (7-ADCA), a pharmaceutical intermediate product of Jiujiu technology, is a semi synthetic intermediate of cephalosporin antibiotics The current capacity of 7-ADCA products is 2000 tons / year, and the sales volume of 7-ADCA products in 2018 and January October 2019 is 192883600 yuan and 50066600 yuan respectively The business scope of Jianding technology is mainly the research and development of biological products and technology transfer, self operation and agency of import and export business of all kinds of goods and Technology (except for the goods and technology limited or prohibited by the state), and production of chemical products (trichloroacetyl chloride and by-products hydrochloric acid and sodium sulfite, glucosamine hydrochloride and sodium trichloropyridine alcohol) Since its establishment for more than 20 years, all businesses of Yan'an Bikang have focused on biomedicine At present, the company's pharmaceutical business income accounts for more than 80% Its wholly-owned subsidiary, Shaanxi Bikang, is a well-known Chinese medicine enterprise in China It has been ranked in the top 100 of China's pharmaceutical industry for many years in a row At present, it has developed into a modern large-scale medicine integrating the production and marketing of proprietary medicine, chemical medicine and health products Pharmaceutical enterprise group Yan'an Bikang said that the market of cephalosporin pharmaceutical intermediates industry continued to be depressed, the "anti restriction" policy issued by the state further intensified the contraction of product market demand, and the 7-ADCA product capacity utilization and profitability showed a downward trend In November 2019, the official website of the national development and Reform Commission officially released the guidance catalogue for industrial structure adjustment (2019 version) (referred to as the "product catalogue"), which will be implemented from January 1, 2020 The catalogue of products consists of three categories: encouragement, restriction and elimination The 7-ADCA products produced by Jiujiu technology are clearly listed in the "restricted category" catalogue, and the products are no longer in line with the national policy guidance Previous data indicated that China produces 210000 tons of antibiotic raw materials every year, of which 18 tons are used domestically As the country with the most serious abuse of antibiotics in the world, China "hangs 8 bottles of water" per person every year on average Therefore, the state has issued a number of documents to further strengthen the clinical application management of antibiotics In this situation, antibiotic enterprises have been affected to varying degrees, which also extends to API and intermediate pharmaceutical enterprises In addition, the environmental emission problem also indirectly promoted the closure of Jianding technology On the one hand, in the context of environmental remediation in Jiangsu Province, Jianding technology has been temporarily shut down since late May 2018 due to its failure to complete the reduction task of hazardous wastes deposited Yan'an Bikang also made it clear that due to the improvement requirements of environmental protection, the company's recovery time is uncertain, and the future direction of the park's leading industry and regional environmental assessment will not exclude the possibility of new planning and requirements As a traditional chemical enterprise, the production equipment and process are difficult to meet the increasingly strict environmental protection requirements, and a large amount of human and financial resources need to be invested in the subsequent rectification From 2012 when the State Council issued the plan for prevention and control of water pollution in key basins to January 2015 when the new environmental protection law was issued, to 2016 when the environmental protection tax law was issued, to 2017 when the Ministry of environmental protection issued the work plan for prevention and control of air pollution in Beijing, Tianjin, Hebei and surrounding areas in 2017 (Draft for comments) The increasingly strict supervision of environmental protection has increased the environmental protection expenditure of API enterprises, forced more small production capacity to withdraw from the market, improved the concentration of the industry, the strong ones are always strong, and brought more opportunities for large API enterprises According to the announcement, Jiujiu has gradually realized the strategic transformation from the fine chemical industry to the new energy and new material industry, and the proportion of new energy and new material industry's contribution to the company's performance has increased year by year.