The transformation of API enterprises has become the general trend, but it is not easy!

[pharmaceutical Station market analysis] APIs refer to APIs used to produce various preparations API industry has the characteristics of low added value, high cost of pollution control and great policy risk At present, under the continuous high pressure of environmental protection, a large number of small and medium-sized API enterprises are affected, and even stop production or even close down According to the industry, the pressure of environmental protection and the unreasonable product structure of many API enterprises lead to low profits, which are the reasons why some API enterprises withdraw from the market and promote the brand shuffling of API industry At the end of 2018, a large number of chemical API enterprises were faced with problems such as shutdown and relocation Relevant departments issued laws and regulations to require some regions to formulate specific measures for peak staggered production of API heating season, which all showed one direction: API enterprises must follow the road of green development, otherwise they will be "out of business" The industry believes that "for API enterprises, in the current trend, not upgrading, not taking the green production road means to be required to rectify, or even be eliminated." Therefore, in order not to be expelled from the market, API enterprises have to adjust the product structure of the enterprise, deal with the pollution of the enterprise, and promote the green upgrading of the enterprise through the use of green environmental protection pollution control equipment, transformation of production lines and other ways Some API companies said, "our own enterprises are not large, and their profits are relatively low, with a revenue of 1 million yuan Under the environmental protection policy, we have also kept pace with the introduction of pollution control equipment, but these costs are very high, at least 10 million yuan The equipment also needs special personnel to maintain and manage, and also needs high cost " On the one hand, the high cost of pollution discharge is the reason that the profit of API enterprises is lower than that of pharmaceutical and intermediate enterprises as a whole High investment and low profit also make it difficult for API enterprises to maintain normal operation and lack enthusiasm for production Transformation has become the general trend, but it's not easy In the case of a difficult life in the API industry, many API enterprises began to consider transformation Taking preparations as an example, it plays an important role in supporting the research and development of new drugs and helping the industrialization of new drugs Many pharmaceutical companies began to layout this early, transforming into pharmaceutical enterprises, or developing intermediates For example, Shiyao group is a typical example of successful transformation In 2018, the group's API and intermediate revenue was RMB 1.8 billion and patent medicine was RMB 14.5 billion, with a year-on-year growth of 35% in operating revenue and a year-on-year increase of 31% in net profit As for the reasons for the growth of performance, the group said in its annual report that in the pharmaceutical industry, innovative pharmaceutical products continue to maintain a strong growth, with a year-on-year growth of 57% in revenue in 2018 In addition, in the API market, although the overcapacity of vitamin C market still exists, the market supply is restricted due to the pressure of environmental protection, which provides opportunities for large-scale vitamin C producers with strength, so that the company's business recorded an ideal performance in 2018 According to the industry, the current transformation may be a new way for the enterprises mainly engaged in API, but it should be noted that the transformation is not easy and requires certain funds, capital and excellent production technology As far as the current situation is concerned, most of the successful enterprises are large-scale enterprises with strength, while those with insufficient capital and less investment have relatively low success rate.