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    Home > Medical News > Medical World News > Pharmaceutical companies actively deploy the API business and build the integrated advantage of API preparations

    Pharmaceutical companies actively deploy the API business and build the integrated advantage of API preparations

    • Last Update: 2022-04-15
    • Source: Internet
    • Author: User
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    [Pharmaceutical Network Market Analysis] In recent years, under the refined division of labor in the global pharmaceutical industry, as the upstream of chemical preparations, the pharmaceutical intermediates and chemical API industries have achieved rapid development
    .

    According to relevant data forecasts, it is expected that from 2020 to 2027, the compound growth rate of the global API market scale will reach 6.
    7%
    .

    The rapid development of the API industry has also driven the performance improvement of domestic pharmaceutical companies to a certain extent
    .

    For example, Luoxin Pharmaceutical recently released its 2021 annual report, showing that in 2021, the company's operating income will increase by 6.
    26% year-on-year to 6.
    478 billion yuan; the net profit attributable to the parent will increase by 26.
    63% year-on-year to 406 million yuan
    .

    Analysts pointed out that since 2018, the policy of purchasing with quantity has been deepened and the national centralized purchasing has become normalized, which has become an industry change that generic drug companies must actively face
    .

    In the new market environment, the ability to produce APIs and the integration of APIs have become important factors for competition in the generic drug industry
    .

    In order to reduce the cost of its own preparation products and build the integrated advantages of API preparations, Luoxin Pharmaceutical is actively deploying the API business
    .

    It is reported that Luoxin Pharmaceutical is continuing to build a 970-mu API industrial park
    .

    At present, Luoxin Pharmaceutical has established production systems for cephalosporin APIs, general chemical APIs and anti-tumor APIs, and will expand a new API production line with a production capacity of 400 tons/year in 2021
    .

       For another example, Jiuzhou Pharmaceutical, a manufacturer of chemical raw materials and pharmaceutical intermediates, and a concept enterprise in the pharmaceutical R&D outsourcing industry, predicts that in 2021, the company's net profit attributable to shareholders of listed companies after deducting non-recurring gains and losses will increase by 65.
    00% to 85.
    00% year-on-year.
    , reaching 332 million yuan, and its performance growth rate in 2021 has reached a high level since its listing
    .

       Analysts pointed out that the growth of the global population and the intensification of aging have promoted the continuous growth of the pharmaceutical market.
    With the arrival of the patent cliff, the accelerated development of generic drugs has also driven the continuous growth of the demand for upstream APIs
    .

    In China, supervision and environmental protection jointly promote industrial transformation and upgrading and structural optimization, and APIs usher in an opportunity for development
    .

    In this context, domestic API companies are also actively strengthening their layout
    .

       For example, Tonghe Pharmaceutical, a company whose main business is the research and development, production and sales of chemical raw materials and pharmaceutical intermediates, said in a recent survey that the company's main focus is on expanding and strengthening the raw materials sector.
    The API industry is developing rapidly, and the company is very optimistic about the future development of this industry
    .

    The company said that CMO/CDMO project companies will also increase investment, but they will adhere to the principle of how much they are capable of doing, and will not sacrifice their own API resources
    .

       Another example is Proton Co.
    , Ltd.
    recently announced to invest 420 million yuan to expand its small molecule API production base in Yichun, Jiangxi
    .

    This expansion project will add 2 new production workshops, public works workshops, comprehensive warehouses and other supporting plant facilities, with a total construction area of ​​31,270 square meters.
    The project construction period is 22 months
    .

       In recent years, China has paid more and more attention to the standardized governance of the API industry, and successively issued relevant policies and regulations such as "consistency evaluation of generic drugs", "centralized procurement with volume", and environmental protection verification.
    Increase, industry concentration increases, high-quality API companies will continue to benefit
    .

       In addition, analysts pointed out that characteristic raw material drug companies have the advantages of quality control and cost control, which provides a good foundation for the development of generic drugs, and can quickly complete the upgrade of generic drugs from non-regulated market to regulated market, and the development of original drug patents to After the period, it will be upgraded to the first imitation, and the status of the company in the industrial chain will be improved.
    The integration of APIs and preparations has become the mainstream trend of industry development
    .

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

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