High-end manufacturing has become a trend, and the boom of pharmaceutical equipment in the industry chain is expected to increase

[ Chemical Machinery Equipment Network Market Analysis ] Looking back at April 2021, the pharmaceutical manufacturing sector has all out of an upward rebound trend.
Data show that as of the close of April 30, the pharmaceutical and biological industry index has risen by about 23% in the past month, ranking first among 28 Shenwan first-level industries.
Recently, Zheshang Securities simply divided pharmaceutical manufacturing-related companies into specialty APIs, partial CDMO expansion, integration & international expansion, and pharmaceutical industry chain companies.
(Such as pharmaceutical equipment, etc.
) and the CDMO development boom is expected to increase, and the performance of related companies is flexible.

High-end manufacturing of raw materials has become a trend
 

From a trend point of view, the API sector is gradually shifting from cyclical products to high-end manufacturing.
In 2020, the specialty API sector companies represented by Aoxiang Pharmaceutical, Stellite and Huahai Pharmaceutical have outstanding performance, and their net profits are respectively year-on-year Increases of 54%, 40% and 63.
24%.

 

Regarding the reasons for the growth in performance, Aoxiang Pharmaceutical mentioned in its annual report: “Invest a large amount of financial resources and manpower for product research, analysis and development, and use R&D to drive standardized market product registration, GMP regulatory management, and EHS construction.
The development frontiers and demand trends of the international generic drug market.
.
.
Expand the scope of product R&D and production and extend the value chain of product production.
.
.
"
 

　　Stellite obtained the preparation approval in 2020, which means that the whole industry chain integration of "intermediate-API-preparation" has been formally completed, and it has successfully transformed from a single raw material drug company to a comprehensive pharmaceutical manufacturing company.
The strategic advantage of integration is also conducive to the company’s future development.
The 2020 annual report shows that the company has completed the sales of 11,000 bottles of contrast agent preparations, and the follow-up increase in volume is worth looking forward to.  

　　Huahai Pharmaceutical is mainly attributable to the substantial increase in sales of domestic preparations and APIs.
First, the company relied on the opportunity of the selection of concentrated procurement to expand the alliance area, which led to a substantial increase in the sales of domestic preparations; second, the restoration of the CEP certificate of sartan products led to a substantial increase in the sales of the company's API products; third, sales growth led to production Expansion, to a certain extent, dilutes production costs and affects profit growth.

 

　　On the whole, the above-mentioned API companies are more proactive in terms of R&D investment, centralized procurement participation, and integrated transformation in 2020.
These API companies are just a microcosm of the industry.
The entire industry is accelerating innovation and upgrading, starting from the low-end.
Towards the direction of high-end manufacturing.
The analysis believes that taking into account factors such as the richness of the product structure of API companies in my country, standardized market participation, and forward integration, product and capacity matching will be an important tracking indicator for judging API companies' short- and medium-term performance.  

　　The boom of pharmaceutical equipment is expected to increase
 

　　It is understood that in the API industry chain, the pharmaceutical industry chain index mainly includes pharmaceutical equipment companies represented by Teflon and Chutian Technology, as well as CDMO development companies such as Shandong Yaobo and Shanhe Yaofu.

 

　　Pharmaceutical equipment is a production machinery used in pharmaceutical workshops.
Under the background of the trend of high-end manufacturing of raw materials, it will bring about an improvement in the prosperity of pharmaceutical equipment.
According to the "In-depth Research and Investment Prospects Report on China's API Industry for 2020-2024", in 2019, the size of my country's API market has reached 257.
929 billion yuan, a year-on-year increase of 6.
4%.
With the gradual transfer of the production capacity of APIs to the Asia-Pacific region and the growing demand for APIs under centralized procurement, my country's API market will continue to expand, and the pharmaceutical equipment industry has certain opportunities.  

　　At the same time, the equipment industry is also facing greater challenges.
For example, production capacity requirements will continue to increase, equipment needs to be upgraded in the direction of high automation, and energy conservation and environmental protection requirements are more stringent, forcing equipment to better balance economic and social benefits when designing.

 

　　It is reported that some API equipment companies have actively launched challenges.
If there are drying equipment manufacturers to increase R&D investment, and set up special environmental protection companies and supporting engineering experiment centers to create energy-saving and environmentally friendly green equipment; there are also pharmaceutical machinery companies that will increase R&D investment and set up special environmental protection companies and supporting engineering experiment centers to create energy-saving and environmentally friendly green equipment.
The new technology is integrated into the R&D and production of API equipment, and a liquid nitrogen freeze dryer that uses liquid nitrogen as a cold source to cool the system has been developed to reduce energy consumption, water consumption, manpower requirements and waste water treatment costs, and improve products Fully automatic solid-liquid separation solution with recovery rate.  

　　Concluding remarks
 

　　In general, the pharmaceutical equipment industry has benefited from the development and upgrading of the API industry, and there is considerable room for growth.
For API equipment companies, while seizing opportunities, they also need to keep pace with the times, innovate equipment and technology, create new products that meet market needs and requirements, and help the API industry achieve high-quality development.

 

　　Original title: High-end manufacturing of raw materials has become a trend, and the boom of pharmaceutical equipment in the industry chain is expected to increase