Domestic specialty APIs have entered a period of rapid development, and there is still considerable room for future demand growth

Featured APIs mainly provide generic drug companies with APIs for research and development of products with imitation patents that are about to expire, and APIs for the production of generic drugs
.
Compared with bulk APIs, specialty APIs have higher technical barriers, the market competition pattern is relatively better, and gross profit is higher
.
In recent years, as the patents of original research drugs have expired, the proportion of generic drugs has increased year by year, driving the continuous growth of the demand for specialty APIs
.
In China, China has also introduced a series of favorable policies such as the centralized procurement of generic drugs to support the development of the specialty API industry.
Since the epidemic, the status of China's specialty API industry has further improved.
The industry has entered a period of rapid development.
Normalization, and the substitution effect of domestic specialty APIs on imported specialty APIs is gradually increasing.
The industry predicts that there will still be considerable room for growth in the demand for specialty APIs in the future
.
It is understood that in the context of the promising development prospects of specialty APIs, some domestic specialty API companies have increased their layout
.
Especially since 2020, companies including Aoxiang Pharmaceutical, Fuxiang Co.
, Tianyu Co.
, Ltd.
, Onglikang, Xianju Pharmaceutical Co.
, Ltd.
, and other companies have all announced fixed increase plans.
Fundraising is used to expand production, and most of the raised investment products are in the introduction.
Varieties in the period or the fast-release period
.
Among them, Aoxiang Pharmaceutical announced on December 23 that it has completed a fixed increase of 420 million yuan.
All the funds raised this time will be invested in the construction of specialty APIs and key pharmaceutical intermediates production bases.
The products of the project mainly include 5 APIs and 7 A pharmaceutical intermediate product.
After the project is put into production, it is expected to achieve an annual operating income of 647 million yuan and an annual net profit of 170 million yuan
.
Fuxiang shares announced a 1 billion fixed increase plan in April 2020, of which about 950 million yuan will be used for the construction of high-efficiency penem antibiotics.
The main products are 4AA and non-sterile API products meropenem
.
The implementation of this fundraising project will speed up the company's industrial chain optimization and upgrading, and improve the vertical integration strategy from pharmaceutical intermediates, raw materials to preparations
.
Anglikang released a fixed increase plan in April 2020, and plans to raise 560 million yuan for the Hangzhou drug research and development platform project and an annual output of 5 tons of doxofylline, 20 tons of potassium hydroxide, and 3 tons of levoamlodipine besylate , 120 tons of piperacillin sodium, 25 tons of tazobactam sodium project
.
Xianju Pharmaceutical disclosed a non-public share offering plan in April 2020.
It plans to raise no more than 1 billion yuan.
After deducting the issuance cost, it will be used for high-end preparation international construction projects, repayment of bank loans and supplementary liquidity
.
It is understood that, in fact, since 2019, domestic API companies have intensively launched new or expanded API projects, helping China's API production capacity to increase to a certain extent
.
According to industry estimates, in more than two years, China's pharmaceutical companies have set up hundreds of new or expanded API projects
.
From the perspective of factors that drive companies to set up new or expanded API projects, there are also many reasons, including the bottom-up demand transmission of centralized procurement policies, safety and environmental protection supervision, and temporary of the expansion behavior
.
Soochow Securities believes that mainstream API companies have expanded their production in recent years to continue to adapt to the gradual expansion of downstream generic drugs.
It is expected that revenue and profits are expected to enter the high growth range
.