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    Home > Medical News > Latest Medical News > With the high-quality development of the API industry, market concentration will accelerate

    With the high-quality development of the API industry, market concentration will accelerate

    • Last Update: 2021-12-27
    • Source: Internet
    • Author: User
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    Bulk drug refers to any substance or mixture of substances used in the manufacture of drugs, and when used in pharmaceuticals, it is used as an active ingredient of drugs
    .
    China is a large producer and exporter of raw materials.
    The raw materials produced not only occupy an important position in the country, but also play an important role in the global pharmaceutical industry chain
    .
    It is worth mentioning that in recent years, with the release of a series of favorable policies, the development of China's API industry is showing a trend of rapid increase in scale, accelerated clearance of low-end production capacity, and increasing industry concentration
    .
    According to statistics, in addition to a slight decline of 1% to 2% in 2015 and 2016, the export scale of China’s chemical raw materials has continued to grow over the years, from 15.
    98 billion U.
    S.
    dollars in 2010 to 35.
    7 billion in 2020.
    The dollar has more than doubled in 10 years
    .
    In addition, there are incomplete statistics showing that in the first half of 2021, China's export volume of APIs has also reached US$19.
    5 billion, a year-on-year increase of 14%
    .
    On the whole, with the advancement of centralized procurement policies, consistency evaluation and drug-related approvals, as well as the impact of factors such as global order transfers, the scale of China's API industry will continue to expand
    .
    However, it should be noted that at the same time, problems such as unreasonable industrial structure, incomplete industrial layout, and low level of green production in the industry are also very prominent.
    Therefore, the country has been issuing documents in recent years to accelerate the growth of the API industry.
    The pace of quality development
    .
    For example, on November 9, the "Notice on the Implementation Plan for Promoting the High-quality Development of the API Industry" (referred to as the "Implementation Plan") issued by the National Development and Reform Commission and the Ministry of Industry and Information Technology clearly stated that by 2025, China will develop a batch of high value-added products.
    Growing varieties, breakthrough a batch of green and low-carbon technology and equipment, cultivate a batch of leading companies with international competitiveness, and build a batch of industrial clusters and production bases with global influence
    .
    It should be noted that some analysts believe that under the high-quality development of the API industry, industry concentration will also accelerate, and some companies may be eliminated in the future.

    .
    Taking the accelerated introduction of environmental protection policies in recent years as an example, as early as 2012, the state issued the "Water Pollution Prevention and Control Plan for Key River Basins", which required increased structural adjustment of pharmaceutical and other enterprises, and shut down high-pollution, high-energy consumption "low and small" , Scattered" enterprises
    .
    Afterwards, some regions imposed restrictions on the chemical oxygen demand and ammonia nitrogen emissions of wastewater discharged by pharmaceutical companies; in addition, the supervision of water, air, and soil has been gradually strengthened
    .
    In this context, the environmental protection expenditure of China's pharmaceutical manufacturing companies has been continuously increasing, which has caused some small-capacity companies to gradually withdraw from the market, which has further increased the concentration of the industry to a certain extent, and has brought a certain degree to the raw material drug manufacturers.
    Opportunities and more challenges
    .
    The industry predicts that in the future, as the industry’s inferior production capacity gradually clears up and industry barriers increase, China’s API industry continues to develop towards a unified global standardization and standardized high-quality direction.
    There will still be some small and medium-sized enterprises that cannot meet the industry’s needs.
    Being eliminated at an accelerated pace, further enhancing market concentration
    .
    At the same time, in the new round of raw material drug production capacity transfer, high-quality raw material drug companies with good technology, market, resources and infrastructure will also usher in historic industrial development opportunities
    .
    This article is an English version of an article which is originally in the Chinese language on echemi.com and is provided for information purposes only. This website makes no representation or warranty of any kind, either expressed or implied, as to the accuracy, completeness ownership or reliability of the article or any translations thereof. If you have any concerns or complaints relating to the article, please send an email, providing a detailed description of the concern or complaint, to service@echemi.com. A staff member will contact you within 5 working days. Once verified, infringing content will be removed immediately.

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