The fixed asset investment of pharmaceutical companies continues to grow, and the upstream industry is expected to enter a period of long-term steady growth

Pharmaceutical equipment is the upstream industry of the pharmaceutical industry, and its development is closely related to the development speed and market capacity of the pharmaceutical manufacturing industry
.
Since 2019, under a series of policies such as centralized drug procurement and consistency evaluation, the pharmaceutical industry has accelerated its transformation and upgrading, and the investment in fixed assets of pharmaceutical companies has also begun to accelerate, driving the growth of the pharmaceutical equipment industry
.
The industry believes that under the background of fixed asset investment in the pharmaceutical manufacturing industry to maintain stability, the pharmaceutical equipment industry is expected to transform from short-term explosive growth to long-term steady growth
.
Pharmaceutical equipment (picture source: Pharmaceutical Network) The fixed asset investment of pharmaceutical companies continues to grow.
From the perspective of fixed investment in pharmaceutical manufacturing, starting in 2011, with the opening of the new version of GMP certification, the scale of fixed asset investment in pharmaceutical companies has gradually increased.
From 2011 to 2015, the growth rate of total assets remained at 15%.
During this period, the pharmaceutical equipment industry also achieved rapid development
.
And by 2015, the production capacity and profit scale of the pharmaceutical equipment industry have reached a high level
.
However, since 2016, the overall growth rate of fixed assets in the pharmaceutical manufacturing industry has slowed down significantly, the demand for pharmaceutical equipment has decreased, and the industry's revenue and profits have also been affected
.
It wasn't until 2019 that the industry gradually recovered
.
According to the National Bureau of Statistics, from January to December 2020, fixed asset investment in the pharmaceutical manufacturing industry has grown rapidly, with investment increasing by 28.
4% over the previous year
.
In this year, the sales of China's pharmaceutical equipment industry reached 19.
7 billion yuan, a year-on-year increase of 14.
6%, and the industry ushered in a turning point
.
Entering 2021, driven by the great health, fixed asset investment in China's pharmaceutical manufacturing industry will maintain stability
.
Judging from the investment data from January to February 2021, the completion of fixed asset investment in the pharmaceutical manufacturing industry has achieved a year-on-year growth rate of 64%, a record high
.
Other data show that the fixed asset investment in the pharmaceutical manufacturing industry from January to April increased by 33.
1% year-on-year
.
On the whole, the investment intensity of my country's pharmaceutical manufacturing industry has been maintained at a relatively high level.

.
The pharmaceutical equipment industry is expected to enter a stage of long-term steady growth.
The industry believes that with the continued increase in fixed asset investment by pharmaceutical companies, the pharmaceutical equipment industry is expected to transform from short-term explosive growth to long-term steady growth
.
The author noticed that Southwest Securities also mentioned in a research report previously released that pharmaceutical companies have begun a new round of fixed asset investment, and the growth of the pharmaceutical machinery industry has accelerated, and the year-on-year growth rate has returned to more than 15%
.
In addition to increasing upstream investment, the pharmaceutical equipment industry has also benefited from the demand side and the policy side
.
On the demand side, with the rise of domestic pharmaceutical machinery giants represented by Chutian Technology and Tofflon, and continuous investment in innovative research and development, the strength of domestic pharmaceutical equipment continues to increase, especially in 2020 when imported pharmaceutical machinery products will be delivered.
In the case of delayed delivery, domestically-made equipment is further favored and recognized by local pharmaceutical companies, and the pace of substitution of imported equipment for domestically-made equipment is accelerating
.
At the same time, with the vigorous development of the domestic biopharmaceutical industry, the demand for biopharmaceutical equipment has also continued to grow
.
According to statistics, the size of China's pharmaceutical equipment market will reach 35.
87 billion yuan in 2020, and the compound growth rate from 2016 to 2020 will reach 9.
67%
.
The policy side, such as the "Drug Administration Law" issued by China in 2019, encourages the pharmaceutical industry to conduct more and more professional innovative drug research and development, and promotes the growth of demand for pharmaceutical equipment
.
The "Industrial Structure Adjustment Guidance Catalogue (2019)" released in the same year also encouraged the development and production of high-end pharmaceutical equipment
.
In addition, the standardization work of the pharmaceutical equipment industry is continuing to further point out the direction for the standardized and healthy development of the industry
.
At present, the number of enterprises in China's pharmaceutical equipment industry is continuing to grow, with revenue and profits showing an upward trend
.
Because the industry market concentration is still relatively low, there is a blue ocean space to be explored.
Relatively speaking, giant companies with innovative R&D capabilities and rich product lines are more likely to obtain new opportunities
.
From the perspective of the overall development trend of the industry, the demand for high-end pharmaceutical equipment will continue to grow in the future, and the industry as a whole will develop in the direction of automation, intelligence, and informatization
.