echemi logo
Product
  • Product
  • Supplier
  • Inquiry
    Home > Active Ingredient News > Drugs Articles > Where will China's API industry go?

    Where will China's API industry go?

    • Last Update: 2018-04-05
    • Source: Internet
    • Author: User
    Search more information of high quality chemicals, good prices and reliable suppliers, visit www.echemi.com
    [market analysis of China Pharmaceutical network] China is the second largest producer and exporter of APIs The export of APIs is close to 20% of the market share of APIs in the world, mainly bulk APIs However, due to the lack of research and development capacity of API industry in China, the current advantages are mainly some mature technology, long product chain API varieties, and relatively aging product structure Some industry figures said that in the face of the strengthening of green development trend, how can API transform and upgrade to achieve better development? It has become one of the focuses of the pharmaceutical industry in China It is understood that this year, the environmental protection tax law was officially implemented After the environmental protection tax was levied, the enterprises that discharge air and water pollutants were greatly affected The pharmaceutical industry is a heavy pollution industry, facing the pressure of environmental protection Recently, the Ministry of ecology and environment announced the accountability of the second batch of environmental protection supervision cases publicly handed over by 7 provinces (cities) Thousands of people in 7 provinces were held accountable The industry believes that the banner of environmental protection will accelerate the reshuffle of API industry Facing the increasingly tightening of green environmental protection policies, backward, low-level and repeated construction, and excessive pollution enterprises at the expense of the environment will be difficult to survive In a round of environmental supervision, many API enterprises have shrunk and disappeared, and they are all leading enterprises of API Without environmental protection, it will stop production Many small enterprises have gone out of business At the same time, it has a huge impact on the supply and price system of APIs The author has learned that from the middle of 2017 to the end of 2017, many provinces in the north have successively shut down thousands of "three no" enterprises According to the trend, a large number of small and medium-sized pharmaceutical enterprises in the API industry will be shut down in the future because they cannot pass the "environmental protection pass" Environmental protection policies are increasingly tightening Some industry insiders say that in this process, some pharmaceutical enterprises are still transforming to downstream preparations In addition, the refinement, serialization and development of bulk API will become the mainstream trend of API development in the future China will encourage enterprises to reduce energy and resource consumption through technological innovation, promote the development of API, improve product technology content and added value, and promote the better development of API The cost of environmental protection is high, many small and medium-sized raw material pharmaceutical enterprises with weak strength are facing the situation of being eliminated, and some enterprises will stop production and move one after another The author has learned that under this background, some large-scale enterprises expand their business scale, and the industry concentration is further improved For example, Minova announced on the evening of March 7 that the company signed the framework agreement on asset restructuring with the property and Chemical Industry Co., Ltd., and reached a preliminary intention to purchase all or part of the equity of Zhejiang Hongyuan Pharmaceutical Co., Ltd held by the property and Chemical Industry Co., Ltd through issuing shares and paying cash The latter is mainly engaged in the research and development, production and sales of pharmaceutical intermediates and APIs, and its main products include atorvastatin calcium intermediates, rosuvastatin calcium intermediates, thiophene derivatives, etc Heilongjiang XinHeCheng Biotechnology Co., Ltd., a subsidiary of XinHeCheng, plans to use self raised funds to invest in the construction of biological fermentation project in Suihua, Heilongjiang Province, with an estimated investment amount of 3.6 billion yuan "The integration of listed API enterprises by taking advantage of capital and scale advantages not only expands production capacity, but also improves competition pattern." Some insiders said In 2017, under the strict supervision of environmental protection, backward production capacity gradually withdrew from the market, enterprises continued to transform in the competitive pattern, and the international market share and bargaining power are gradually improving With the continuous promotion of supply side reform and stricter environmental protection supervision, the API industry has entered the integration period Although many small and medium-sized enterprises have left the market in succession, there are also many enterprises with outstanding performance For example, PetroChina group has adopted the strategy of focusing on advantageous products in the field of API, only a few varieties with technological and scale advantages have been retained, and achieved The export volume of vitamin C exceeded US $200 million, an increase of more than 50% year on year From January to December 2017, Northeast Pharmaceutical's net profit attributable to shareholders of listed companies ranged from 110 million yuan to 120 million yuan, up 360% to 400% year on year In 2017, Huahai pharmaceutical achieved a revenue of 5 billion yuan, a year-on-year increase of 22.17%, a net profit of 633 million yuan, a year-on-year increase of 26.45%, and a net profit of 594 million yuan, a year-on-year increase of 30.79%, slightly exceeding market expectations.
    This article is an English version of an article which is originally in the Chinese language on echemi.com and is provided for information purposes only. This website makes no representation or warranty of any kind, either expressed or implied, as to the accuracy, completeness ownership or reliability of the article or any translations thereof. If you have any concerns or complaints relating to the article, please send an email, providing a detailed description of the concern or complaint, to service@echemi.com. A staff member will contact you within 5 working days. Once verified, infringing content will be removed immediately.

    Contact Us

    The source of this page with content of products and services is from Internet, which doesn't represent ECHEMI's opinion. If you have any queries, please write to service@echemi.com. It will be replied within 5 days.

    Moreover, if you find any instances of plagiarism from the page, please send email to service@echemi.com with relevant evidence.