The raw materials industry reshuffle or price increases stop supply terminal drugs difficult to follow the trend of rising

Recently, the Ministry of Environmental Protection, the National Development and Reform Commission and other 10 ministries, in cooperation with Beijing, Hebei and other 6 provinces (municipalities) government issued the "Beijing-Tianjin-Hebei and surrounding areas of the autumn and winter 2017-2018 air pollution comprehensive control action plan" (the "Programme"), with special emphasis: involving the production of raw materials pharmaceutical enterprises, if the emission process will be implemented in principle to stop production. Industry insiders said: "A lot of raw materials companies are large polluters, so moving is bound to close a number of factories, downstream may face from time to time out of stock, but the terminal drug is difficult to follow the price increase." " API industry or ushered in a big reshuffle
It is learned that late last year, Shi Pharmaceutical, North China Pharmaceuticals and other RAWM manufacturers due to environmental non-compliance was ordered to stop production and heavy losses, according to the announcement of North China Pharmaceuticals, due to the loss of net profit of 549.3 billion yuan.
program shows that from July 1, 2017, strict implementation of the petrochemical industry emission standards requirements, and promote the pharmaceutical industry VOCs (volatile organic matter) comprehensive management. By the end of October 2017, all localities have basically completed the rectification work, and enterprises that have not completed the management and transformation have implemented the shutdown and rectification in accordance with the law, which will be incorporated into the winter wrong peak production programs in various places. By the end of December 2017, the issue of sewage permits for industries such as API manufacturing will be completed.
For enterprises that exceed the emission standards, this "programme" punishment measures can be described as very "expensive", that is, super-penalty means immediate rectification, ordered enterprises to immediately rectify and solve;
" recently there are raw materials factory inspection but off the GMP certificate was withdrawn, resulting in the market supply of conventional drugs tight, dealers to seize the hoarding. API enterprises are the worst-hit areas of pollution, with the implementation of the New Deal, the future can be foreseen is a number of pharmaceutical companies will shut down rectification. In response, an industry observer told reporters.
It is understood that since last year, production restrictions mainly concentrated in raw materials enterprises and Chinese medicine tablets production enterprises, the two major environmental protection, quality problems in the hard-hit areas, and in the context of environmental protection policies continue to upgrade, in the short term China's API industry may usher in a major reshuffle.
" environmental protection sword hanging high, or force enterprises to eliminate backward production capacity, or promote large-scale relocation of enterprises, but environmental protection upgrade can not be completed overnight, so the whole process will force many small and medium-sized pharmaceutical companies out, and environmental protection measures in place of the leading enterprises market share may rise further. The observer believes.downstream enterprises dare not casually increase prices
In the long run, environmental protection policies are conducive to the transformation and upgrading of the API industry, but in the short term may bring price increases and cut-off effects. Analysts believe that the API has a major feature is one-to-many, it is likely that several API companies to take over the country's hundreds of pharmaceutical companies supply raw materials, which is also due to raw material approvals and other birth defects, so once closed some pharmaceutical companies, may have a greater impact on market supply and price fluctuations.
the end drug will be so "water rising ship high", triggering a round of price increases? The observer says consumers don't have to worry too much. "Downstream preparation companies have to digest a large increase in raw material prices on their own." Behind it is price regulation at work. "After the price of drugs was liberalized, pharmaceutical companies did not dare to adjust prices casually, because the monitoring is very strict, some pharmaceutical companies would rather not produce raw materials when expensive, rather than risk being interviewed to easily increase prices, especially for the market share is not high, not the company's 'money tree' products, not easy to increase prices." (Guangzhou Daily)