Guangji Pharmaceuticals re-trapped raw materials drug wave price increase, monopoly.

on the evening of September 21st, Guangji Pharmaceuticals issued a notice that the European Commission officially announced the rejection of vitamin B2 80% of products produced by Spores spore KCCM-10445, requiring that the existing inventory of the vitamin B2 80% product sold to the EU market be withdrawn from the market by November 10The company recalled 125.06 tons of the vitamin B2 80% of the product in advanceThis incident affected the current period revenue of 28.25 million yuanon March 27 this year, the European Commission on Food Safety (EFSA) issued an opinion on the risk of the spread of live cells and DNA from 80% of vitamin B2 (riboon) products produced by GWangji Pharmaceuticals using bSanospora (BS) bacteria KCCM-10445, noting that the product was considered by the Panel to be genetically modified strains carrying the genes that encode antimicrobial resistancethe EU announcement, Guangji Pharmaceuticals has just released its 2017 annual report and said in a report that vitamin B2 80% of products firmly grasp the core market and core customers, consolidating the distribution market in the United States and EuropeThree of Guangji Pharmaceuticals' top five customers in 2017 were in the European Union, accounting for 9.42% of total annual salesat the time Guangji Pharmaceuticals denied in the announcement that it was due to product quality problemsAlthough in April Guangji Pharmaceuticals went to the European Union to communicate with relevant institutions, and restarted the submission and registration of new SAMPLEs from the European Union, the European Union also on whether to recall and ban the vote, but in May, Guangji Pharmaceuticals stopped exporting the product to the Euand in the past few days, Guangji Pharmaceuticals has just emerged from the monopoly and price increases of the sound of the sound of hard to get out of breathUntil October 2017, there had been persistent media reports of vitamin B2 out of stockVitamin B2 on the market once cut off for up to 10 months, and the reason is that the preparation factory can not buy from the most upstream API enterprises to vitamin B2 raw materialsAfter the resumption of supply, prices have soared from less than a thousand yuan per kilogram before 2017 to 2,000 to 2,500 yuan per kilogram todayAt present, the domestic market and vitamin B2 raw materials (CP version) almost by Guangji Pharmaceuticals exclusive supply, holding the absolute market dominance of Guangji Pharmaceuticals is almost naturally caught in the monopoly market, sitting in the price of the vortexAlthough, Guangji Pharmaceuticals once tried to explain to the outside world that as a state-controlled enterprise, will never take monopoly measures to increase prices, but also have to admit the fact of price increasesIn Guangji's publicly released financial report, the cost of vitamin B2 not only did not increase, but also due to the improvement of the process has been reducedThe report said: optimized VB2 and VB6 production processes, reduced production energy consumption and raw material costs, providing more profit margins for the product2017, Guangji Pharmaceutical raw materials products accounted for 85.98 percent of total revenue, the first half of 2018 this proportion of 86.91 percent, the first half of the financial results show that Guangji first-half revenue of 401 million, up more than 130 percent year-on-year, and vitamin B2 as its leading product, even if there is environmental pressure and factory relocation as a reason for price increases, the market does not seem to buy Many downstream enterprises are more said that raw materials prices, pharmaceutical companies can only increase prices to transfer pressure, and will eventually put this pressure on consumers the constantly caught in the storm of Guangji Pharmaceuticals has a little bit of "tree wind" meaning Vitamin B2 has been the leading product of Guangji Pharmaceuticals, with an annual production capacity of 4000 tons You know, the current global total production capacity of vitamin B2 is only 10,000 tons, Guangji, DSM, BASF three production capacity together accounted for 80 of the global production capacity, and Guangji Pharmaceuticals itself accounted for 40% Exports account for 47% of Guangji B2's revenue, and the EU Food Safety Commission's decision is not a big blow to Guangji