Many pharmaceutical companies said that they will increase production capacity, will the demand for upstream equipment usher in growth?

【Pharmaceutical Network Market Analysis】Recently, under the prospect of ibuprofen and other antipyretic and analgesic drugs setting off a rush to buy or even some products in short supply, the production capacity of related pharmaceutical companies has also attracted market attention
.
Many pharmaceutical companies said that they will increase production capacity, will the demand for upstream equipment usher in growth? (Image source: Pharmaceutical Network) At present, many pharmaceutical companies have said that they will actively increase production capacity to meet market supply
.
For example, Combe recently reported that its pharmaceutical manufacturers have further increased production capacity, strengthened employee deployment support, and made every effort to ensure the full operation
of the shortage drug production line.
Rongchang Pharmaceutical (Zibo) Co.
, Ltd.
recently told the media that the company has reduced the production of drugs unrelated to epidemic prevention, and all production lines and employees give priority to the production of anti-epidemic drugs, in order to further increase production capacity, the company has decided to adjust and start a new oral liquid product production line
.
Simcere Pharmaceutical, Guizhou Bailing, Xinhua Pharmaceutical and other manufacturing enterprises are also working overtime in recent days, working 24 hours a day to improve production capacity
.
It is reported that the order of Xinhua Pharmaceutical Certificate has been scheduled to January next year, and the company is working hard to exert its production capacity, and the workshop is also working overtime
.
In addition, the multinational pharmaceutical company Johnson & Johnson also said that it is actively promoting plans to optimize production facilities in response to the shortage of fever-reducing products such as Merrill Lynch and Tylenol in some parts of China, in order to further increase production capacity
.
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It is worth mentioning that in order to improve the production capacity of related products, some pharmaceutical companies have also urgently upgraded their equipment, purchased high-speed tablet presses, water purification equipment and other equipment, and their high-speed tablet press equipment is expected to double the production capacity after being put into use, and the water purification equipment is being assembled and will soon form new production capacity
.
In this regard, some analysts believe that as pharmaceutical companies expand production, the supply chain is transmitted upstream, and the upstream equipment demand or growth, related pharmaceutical machinery companies may usher in opportunities
.
However, it needs to be noted that it is not easy for pharmaceutical companies to expand production, and they also face certain risks
.
For example, many drug shortages are sudden, and expansion may lead to drug hoarding
.
In addition, whether the equipment upgraded by the pharmaceutical company will be idle is also a big problem
.
Once pharmaceutical companies make up their minds to expand production, they also need to consider issues such as
the number of production increases.
These challenges also remind pharmaceutical companies that expanding production needs to be rational.

"As far as analgesic and antipyretic drugs are concerned, products such as ibuprofen, paracetamol, and aspirin are widely used and are listed in the reference list
of commonly used drugs for home treatment.
Recently, these drugs have been rushed to buy, and there has been a 'run effect', which has caused an imbalance in the supply of production enterprises, but many places have now called on residents to stock up on drugs
reasonably.
"The industry believes that in the short term, the shortage of some drugs may continue for a period of time, but as pharmaceutical companies work overtime to catch up with production, and the regulatory authorities intervene, the subsequent production and sales of the overall market are expected to return to normal, and terminal demand will decrease
.
" At present, in response to unreasonable drug distribution behavior, the regulatory authorities have taken action to rectify
it.
For example, on December 14, the State Administration for Market Regulation announced cases of illegal prices of epidemic-related materials, in which pharmaceutical companies were fined 500,000 yuan for allegedly bundling and selling prices and gouging prices; A pharmacy in Beijing was fined 300,000 yuan
for raising the price of Lianhua Qingwen capsules.
For upstream equipment companies, they should actively seize opportunities when they come
.
At present, digitalization and intelligence have become the development trend of the pharmaceutical equipment industry, and the market demand for overall solutions is also increasing, forcing pharmaceutical machine companies to actively increase research and development, continuously improve the automation capabilities of equipment and the solution level of enterprises, and help pharmaceutical companies improve quality and efficiency
.
Disclaimer: Under no circumstances does the information or opinions expressed herein constitute investment advice
to anyone.