"Medical reform" to strengthen the status of the API-preparations and CDMO to strengthen the status of the API-CDMO has benefited the most from the 100 billion market.

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 current outbreak impact on the global API supply pattern in the background.
the current global API industry presents some changes that deserve our attention, may also be for domestic API enterprises to bring historic opportunities.
Judging from the trend of API in recent years, the excess income of the specialty 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 industry, the domestic regulatory market more stringent, raw materials in the industry gradually improve the status of the beginning of 2019, although the pharmaceutical market accelerated regulation, generic pharmaceutical enterprises at the same time into the shuffle stage, a large number of industry concentration, but for the upstream API industry provides a great opportunity for development.
at 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 expansion of new varieties, domestic characteristics of 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 achieve the integration of "raw materials and preparations", and some API enterprises can also participate in the share of the rights and interests of downstream preparations;
industry barriers still exist, characteristics and patented API growth is higher API is divided into bulk API, specialty API and patented API, of which the demand for bulk API is relatively stable, and the characteristics of API and patented API has a qualitative improvement compared to the former.
photo source: Southwest Securities API industry special report from the barrier point of view, three similar API enterprises in essence also have a large gap.
Bulk API: low threshold, fierce competition, and specialty API and patented API threshold is high;
, of course, is also a top-of-the-line product on earnings 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;
Photo Source: Southwest Securities API Industry Special Report So, throughout the global profit process, the scale advantage of API in China has been basically laid, intermediates - API - preparation cost advantage has been played, global competitiveness has been greatly enhanced, low-end production capacity clear 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 characteristics of API production capacity also gradually transferred to the Asia-Pacific region, domestic related industries ushered in a higher degree of prosperity.
the main reason for this is perhaps the rising environmental and labor costs in developed countries such as Europe and the United States, which have tilted the balance towards the Asia-Pacific region, with China and India being the largest undertaker of capacity.
, according to related reports, the domestic market is expected to reach about 5.5 billion U.S. dollars in specialty raw materials.
capacity transfer of global bulk API has been basically completed, while the transfer of specialty API is accelerating.
the impact of short-term outbreaks, some variety prices may rise.
the API industry, which has been transferred from big countries, 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 a blessing for China's industrial development.
can seize the opportunity and rise up the trend, it will not meet expectations.
THE position of API in the industry gradually improved 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, today's API in the industrial chain has been enhanced, and most likely with the advancement of health care reform, the industry growth space is expected to open further.
Photo Source: Southwest Securities API Industry Special Report 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 production of pharmaceutical business volume.
trend of innovative drugs, API companies have a strong future, CDMO-API fully explains the strategic approach of 1>2, is expected to become one of the largest strategic suppliers of domestic innovative pharmaceutical companies.
since 2019, there have been a growing number of collaborations between innovative pharmaceutical companies and generic API and CDMO.
one of the innovative pharmaceutical original research partners to choose API outsourcing cooperation, CDMO companies such as Jiuzhou Pharmaceuticals, Hequan Pharmaceuticals.
reviews, such as that of Pulo Pharmaceuticals, reflect the leading edge of CDMO in the field of innovative and difficult API.
the medium term, the commercial production of innovative drugs involves process amplification, cost management, part of the research and development, strong production capacity of API and CDMO enterprises have innate advantages.
focus on the three major trends of enterprises to seek development opportunities, therefore, in today's API industry, if you want to stand firm and move steadily forward, the three trends may be helpful.
through research and development to enrich their own product pipeline, to a certain extent, can improve market competitiveness.
To Novartic as an example, the company around blood pressure, blood sugar, anti-infection and other fields layout, product pipeline is constantly enriched, in the field of chronic diseases to form a combination of fists, market competitiveness significantly improved.
. The integration of RAW drugs and preparations can greatly reduce costs, is the current key layout direction of API and generic pharmaceutical enterprises, such as Huahai Pharmaceutical Industry, Stai li 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.
the domestic CDMO is in the stage of rapid development, many enterprises are rapidly transforming, such as Prop drug owners to 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 and become the key!