Upgrading of China's raw material pharmaceutical enterprises poses a certain challenge to the supply of Indian market

[industry trends of pharmaceutical network] data shows that from 2013 to 2017, the global API market scale increased from US $119.6 billion to US $155 billion, higher than the drug growth rate in the same period According to the analysis and prediction of industry institutions, the global API market size will rise to 225 billion US dollars in 2021 For the development of API, China can be called a big producer and exporter of API It is reported that there are more than 2000 kinds of APIs produced in the world, while there are more than 1500 kinds of APIs that can be produced in China At present, there are six Chinese enterprises in the world, including Zhejiang XinHeCheng, Zhejiang medicine, North China medicine, northeast medicine, Zhejiang Huahai pharmaceutical and Zhejiang Haizheng pharmaceutical However, in recent years, due to China's increasing emphasis on environmental protection, many Chinese pharmaceutical companies are upgrading their industries, which poses a certain challenge to the supply of Indian API market I learned that recently, it was reported that India began to compete with China for the API market India has approved in principle the establishment of API production bases in Himachal Pradesh, trengana Pradesh and Andhra Pradesh to counter China's position in this field, according to print According to the plan, India has an intentional commitment to provide 70% or no more than 1 billion rupees (about RMB 98.01 million) of the total cost to each base As for why India provides policy guarantee for the development of APIs at this time, Indian media reported that the cost of APIs in China is at risk of rising, or will further stimulate India to introduce policies to encourage the localization of API production In recent years, China's policy of environmental protection and supervision has helped the API industry to take the opportunity to optimize product structure and upgrade its industry, and transform itself into a high-end API In addition, as the developed countries in Europe and the United States basically adopt the "drug master file" (DMF) management mode for APIs, China can also use this upgrading transformation to achieve the transition of management mode, and eliminate some small pharmaceutical enterprises that do not meet the market competition standards, so as to achieve the centralized scale development China's transformation and upgrading of API development has further stimulated India's competition for API market With regard to the development of China's API market, some analysts said that driven by regulatory policies, industry development trends and other factors, China's API may usher in a golden development period, and the industry development space is very large, which can last for at least 5 to 10 years It is understood that the pricing mode of API has also changed since the implementation of the new regulations on volume purchase In the past, as the raw material supplier of pharmaceutical plants, the cost plus method was usually used for pricing With the improvement of pricing power of API enterprises, the pricing was changed into profit sharing mode, and there was a large space for profit elasticity of API enterprises Some funds also say they are optimistic about API sector, especially high-end specialty API companies In their opinion, some domestic characteristic API enterprises have already possessed international competitiveness, with large growth space and steady growth speed at the demand side; the supply side is subject to environmental protection factors, certification threshold and process barriers In recent years, the production capacity has been cleared, the competitive environment has been improved, and the investment opportunities are worthy of attention It is reported that the performance of many API companies has achieved good growth According to the industry, the growth of performance is due to the increase of API price and profitability under the pressure of environmental protection
Some people in India also say that in the past, China's API has incomparable competitiveness in price, which is often 1 / 3 cheaper than similar products in the market In 2018, India imported nearly $7 billion of API from China However, in recent years, due to China's increasing emphasis on environmental protection, many Chinese pharmaceutical companies are upgrading their industries, which has become one of the major suppliers of API in India Challenge to a certain extent