API companies are competing to expand production capacity, and pharmaceutical machinery companies are ushering in a good opportunity for development

【Pharmaceutical Network Market Analysis】Recently, Qianhong Pharmaceutical announced that it intends to use its own funds to invest 600 million yuan in a new API production base project
in Zhongxiang City, Hubei Province.

The project is divided into two phases of construction: the first phase of the project will build a new polysaccharide product production line, high-end antithrombotic drug production line, medicinal protease drug production line, crude pancreatic enzyme raw material production line and related supporting facilities
.

API enterprises are vying to expand production capacity, and pharmaceutical machinery enterprises are ushering in a good opportunity for development (Source: Pharmaceutical Network) The second phase of the project will build a new drug packaging material production line, targeted anti-tumor drug production line and related supporting facilities
.

After the project reaches production, it will form an annual production capacity
of 6.
5 tons of high-end antithrombotic drugs, 125 tons of crude pancreatin, 75 billion pharmaceutical proteases, 5 tons of targeted anti-tumor APIs, and 100 million pieces of pharmaceutical packaging materials.

The industry believes that Qianhong Pharmaceutical's revenue growth rate of API series in the first half of the year is obvious, or it has boosted the company's confidence in the development of APIs, which has become the reason for
this large-scale expansion of production capacity.

In fact, with the continuous expansion of the API market, and the increasingly fierce competition in this "Red Sea" market, coupled with the impact of the transformation from APIs to CDMO such as Jiuzhou Pharmaceutical and Puluo Pharmaceutical, the business and production mode of domestic API enterprises are undergoing significant and profound changes in recent years, and many API companies are vigorously building new production projects and transforming and upgrading
.

For example, on March 16, Aurite issued an announcement that the company plans to invest a total investment of 637.
8751 million yuan, and intends to carry out a new production line project
with an annual output of 308 tons of characteristic APIs and 200 million anti-tumor preparations in the Tiantai Cangshan Industrial Agglomeration Area.

On March 9, Hokuriku Pharmaceutical also announced once again that it expects to invest 192 million yuan to start the construction
of the "Cangzhou Phase III Raw Material Production Project".

The integration of "API + preparation" is the key layout of Hokuriku Pharmaceutical's strategic development in recent years, of which the construction of contrast agent API is one of
the company's key tasks.

On the whole, many pharmaceutical companies will either continue to focus on the field of APIs and expand more product pipelines; Or cut into the downstream preparation market to achieve "API + preparation integration"; Others rely on their rich large-scale production experience and cost control capabilities to undertake more CMO/CDMO orders, improve profitability, and transform
to CDMO.

It is worth noting that many API companies are also facing more challenges
while competing to expand production capacity.

For example, under the high pressure of a series of energy-saving and emission-reduction policies, API companies are facing increasingly stringent environmental protection supervision and quality improvement
.

Industry analysts believe that these factors may further force the original pharmaceutical companies to upgrade
related pharmaceutical equipment and technology.

In fact, at present, many domestic pharmaceutical equipment companies have taken action in order to meet the needs of related enterprises to upgrade and expand production, such as creating safer, green, energy-saving, efficient equipment and solutions
.

It is understood that some pharmaceutical equipment companies have developed a new combination of multi-effect distilled water machine
that can provide aseptic pharmaceuticals, injections, large infusions and biopharmaceuticals for the pharmaceutical industry.

According to the staff, this equipment can run continuously for 240 days, and comprehensively save 65%
in water saving, industrial steam saving, and reducing the sewage pressure of enterprises.

In addition, there are also enterprises set up a special environmental protection company and supporting engineering experiment center, establish the core elements of energy-saving and consumption-reducing environmental protection product design, and actively develop and produce green equipment, and have achieved good economic and social benefits
.

In general, while the API industry and enterprises continue to develop, they will continue to force domestic API production equipment manufacturing enterprises to strengthen R&D investment, continue to make new breakthroughs in high-end, environmental protection, energy conservation and other fields, and accelerate the development of the API industry in the direction of
high quality.

Disclaimer: Under no circumstances does the information herein or the opinions expressed in this article constitute investment advice
to any person.