Chemical Raw Materials: The "production Shift" To Create Opportunities
International chemical raw materials market has entered a mature stage
, the domestic raw material drug companies are facing a "transfer of production" in an excellent situation, in particular the advantages of bulk raw material drug production enterprises.
2002 from January to May, the National Bulk Drug Industry total profits grew significantly, the chemical pharmaceutical industry's profit growth driven significantly.
Transfer of production, the state's macro regulation and control are effective, raw material prices, raw material drug industry, the main reason for warming is anticipated that this trend may also continue.
Enhancing international capabilities, through the capital operation to accelerate the industry consolidation is inevitable choice for enterprise development, chemical raw materials, companies need to operate in the capital market interest.
Industry Status: steady growth in profitability strong
Chemical raw materials, as
Chemical agents upstream products, raw materials preparation products to promote the production and sale of drugs have a pivotal role. Preparations products medicine manufacturers demand for raw materials vary, the demand for generic drugs manufacturers have occupied for nearly two-thirds of the other there is food, feed additives, veterinary drug manufacturers, demand is gradually expanding, the domestic enterprises in this regard, the advantages of relatively significant.
Obvious advantages of China's bulk API
In recent years, China chemical raw materials manufacturing technology to achieve major breakthroughs raise the level of production very soon. China antibiotic raw material drug production technology and quality was generally align with the international top companies in the international market to gain 30% market share; vitamin C is the largest varieties of raw material drug production, the yield from 48% to 60%, accounting for the international market, nearly 50%; antipyretic and analgesic raw material medicine category accounted for 45% of the total international market; cortical hormone bulk drugs a major breakthrough in technology in recent years, significant cost reductions, quality has reached international advanced level, such as dexamethasone in the Asian market share of 50%, and gradually enter the European market.
Gradually tends to focus on the production
China chemical raw materials and intermediates manufacturing enterprises can be divided into two categories, one is a drug manufacturing license and production of documents relating to the regular raw material drug production enterprises, and the other an ordinary Fine Chemical Plant, which manufactures bulk drugs intermediate Body and raw material crude drugs. In terms of geographical distribution of point of view there are two concentrated regions: one is the regional center, Taizhou, Zhejiang, with a strong advantage in exports, the region is planning to establish chemical raw materials export industrial parks, and has been included in the national pharmaceutical industry "Tenth Five-Year Plan". Zhejiang Province in the next five years, investment 100 million yuan, the completion of five billion U.S. dollars annual export volume, accounting for 25% market share in the international chemical raw materials base; the other in Jiangsu Wujin, Changzhou, Jintan and the area is characterized by small and medium enterprises dominate the varieties in recent years the development of new drugs, little demand for all varieties, some enterprises with foreign countries have a well established sales channels, is a foreign contract manufacturer in the supply chain a ring very close contact with the international market .
Relatively stable production and sales
China's production and sales of chemical raw materials industry, relatively stable, and generally maintained a growth rate synchronized with the pharmaceutical industry. Needs to be emphasized is that China is now the world's largest exporter of bulk drugs, bulk drugs in the world market share of about 20% market share, vitamin C, citric acid, antibiotics, paracetamol and some other important species in the world, occupies a pivotal position . In recent years, China's production of chemical raw materials along with the rise in export volume has also continued to grow at an average annual growth rate of around 7.8%.
API profitability of fast-growing
The latest statistics show that the country's industrial sub-category, the pharmaceutical industry in the 1-4 month of production and operation of substantial growth, production growth promotion, increased exports performed well. 1 ~ April of this year, medicine, industrial output in comparable prices completed 98.79 billion yuan, compared with a year earlier, an increase of 21.3%, higher than the national industry average of 4.9%; Medicine completed 29.04 billion yuan of industrial added value than the same period last year growth of 18.1%, higher than the national industry average of 6.9%. The first quarter, sales revenue and profit growth from the state perspective, chemical pharmaceutical industry grew 20.06%, 48.26%, sales revenue and industry-wide average increase of basically the same, but the profit increase markedly improved; Chinese medicine industrial growth 18.64%, 17.09%, below the industry average. Chemical pharmaceutical and Chinese medicine after the two major areas of the WTO noticeable contrast.
Into 2002, the growth of chemical raw materials industry, significantly different than in the past. The State Economic and Trade Commission to the latest statistics show that, as of 2002 from January to May, chemical raw materials industry realized sales revenue of 27.274 billion yuan, an increase of 17.75%, a total profit of 1.51 billion yuan, an increase of 30.11%, of which sales revenue and basically the same as the pharmaceutical industry average, but its profits increase markedly improved, effectively boosting the growth of the pharmaceutical industry. From the enterprise side, the total profit is probably mainly due to a substantial increase in product sales growth, finance charges, as well as export subsidies, slowing the growth of income.
Analysis: Preliminary Results on the transfer of production is
2001 merchandise exports in the pharmaceutical, chemical raw materials is still the main varieties of China's exports reached 1.92 billion U.S. dollars, compared to 2000 growth of 9.4%. Chemical raw materials in the first quarter of 2002 exports of 440 million U.S. dollars, grew by 10.0% over the previous year, ring than the fourth quarter of 2002 increased 22%, of which in March 2002 on the export of 190 million U.S. dollars, rapid growth has emerged. Quarterly data show that in the first quarter of 2001 export level of only 4 billion dollars in the fourth quarter of 360 million U.S. dollars, the second and third quarters of each quarter, the average level of 580 million U.S. dollars, annual average monthly export of 170 million U.S. dollars . According to March 2002 exports of raw materials medicine export situation was relatively good.
As can be seen from the data, chemical raw domestic product growth rate of the past three years, about 8%, and its export situation has increased steadily. Export volume accounts for the proportion of output decline, in part also due to the rapid expansion of domestic production and exports slightly less than digestion. Many enterprises report that this year, exports and output growth significantly, although the trend of falling prices unchanged, but with the small business cut-off price shocks of gradually reducing the profitability of chemical raw materials is gradually increased.
Chemical raw materials production and sales volume to grow steadily, gradually increase the level of profit for the underlying reasons are mainly the following:
International raw material medicine, the production of intermediate products to the domestic transfer.
National key products of macro-control measures are effective. For example, VE, VC industry. In addition, many areas of raw materials to support intensified drug business, from tax, financial subsidies granted concessions, enterprises in the export of China's WTO accession has also enjoyed the convenience of following the terms of the foreign tariff reductions.
The upper reaches of raw materials and the final price decline at the same time, in the margin the same circumstances, the above factors have created some of the sales increase may be profitable, so in particular the profitability of large-scale enterprises are gradually enhanced, small enterprises have ceased production actually increased after the reduction of loss of the entire industry profits. Chemical raw material prices this year due to falling oil prices, overall price decline in 2001 year. 2001, due to the emergence of drought in northeast China, used in fermentation of starch, molasses, etc. 30% of the price increases occurred, but prices have already begun to fall. After accession to the WTO, there are enterprises report that prices of raw materials by the international influence of increasingly evident, due to the international market, lower than the domestic price of raw materials, better quality, lower costs, so profitability in the case of capacity expansion could significantly increase.
The first half of this year, the good situation of chemical pharmaceutical industry, primarily driven by the cephalosporin products. As China's medical and health system reform, medicine gradually expanded the scope of the tender and cephalosporins preparations significantly decreased product prices, strong consumer products driven formulations, and this has driven Cephalosporin APIs and intermediates of the expansion and hot.
International Perspective: the transfer of industries to developing countries
Production into the relative maturity
Chemical raw materials in 2000 the global market size of about 200 billion U.S. dollars, annual growth rate between 6% ~ 7%. Revenue from sales of view, the world's production of chemical raw materials has matured. The current global production and sales of raw materials up to more than 2,000 kinds of kinds of drugs, but the vast majority of APIs are no more than 100 years of trading tons, turnover of 100 million dollars in small species, only penicillin, paracetamol, aspirin and vitamin C, E and dozens of kinds of raw materials larger than the drug trade.
The transfer of production to developing countries,
At present there are five of the world's leading raw material drug production regions: Western Europe, North America, Japan, China and India. Western Europe where the drug net exporter of raw materials, exports account for about 50% of the total; North America is a major importer of bulk drugs, their products make up only 20% of the total amount; Japanese medicine has now basically self-sufficient in raw materials, the estimated future will gradually become a net importer of bulk drugs; China and India are already rising raw material drug-producing countries, exports accounted for 30% -40% yield. The current situation, the Indian bulk drugs industry's annual growth rate of more than 20%, higher than China's API industry average of 15% growth rate, some experts have estimated that in 2005 the export of chemical raw materials in India will exceed 2 billion U.S. dollars, overtaking China . Transfer of production inherent in the cost of production in Europe and America because of the short term is unlikely to decline significantly through technological breakthroughs, but also due to a gradual increase in environmental requirements, thus gradually to China, India, Pakistan and other developing countries the transfer of a trend.
New Trend: Contract Production and concentration of production
At present, the chemical raw material drug production has become more focused on contract manufacturing and the production such as new trends. The world's pharmaceutical preparation manufacturers of chemical raw materials and intermediates required for 60% of outsourcing or contract manufacturing. Direction of development of drugs from raw materials point of view, for the technology matures, high demand for the generic-name drugs, in order to obtain economies of scale, concentration of production trends are becoming evident, such as antibiotics, VC, etc.; patent-name drugs require a small quantity and variety of production, use of multi-functional synthetic workshop, the rapid response to market changes will become increasingly important; has its own characteristics and techniques, such as bio-enzymatic reaction, the complex chiral synthesis techniques, extreme conditions of synthesis technology SMEs will also have a distinct advantage in the competition. In addition, since most of the multinational pharmaceutical companies in order to reduce the risk of R & D, and gradually outsourcing part of research and development tasks, including a variety of candidate compounds. This trend will be the production of bulk drugs have a major impact.
Prospects for development: facing the world for industrial integration
The State Economic and Trade Commission in 2002 the total control, and structural adjustments guidance pointed out that the pharmaceutical industry should strengthen its focus on the regulation of production, the promotion of domestic production enterprises and large foreign enterprises, cooperation, seize the "transfer of production," the opportunity to make our country as soon as possible into other key chemical raw materials and intermediate products of the production base. Current and future period of time, multinational pharmaceutical companies are global structural readjustment, have some of the raw material drug production transfer to developing countries, or direct purchase of bulk drugs to developing countries. This trend has created for us a number of rare opportunity. Of individual enterprises must be abandoned, "This is a low-level thing", "get hold of a class of drugs more than okay," a similar idea. Moreover, patents do not involve the production of generic drugs, China has a production capacity of strong, low-cost advantage of generic drugs produced in foreign countries to compete, but our time would be to get China to produce generic drugs. If the business opportunities arising from the use of the transfer of production to establish and consolidate the country as the world's patent did not involve the status of common production base will help to enhance our raw material medicine and preparation of the technological level and greatly enhance our pharmaceutical industry chain in the world on the weight of evidence.
Internationalization issues need attention
Large domestic enterprises have a clear API "big company disease", International capabilities poor, the market's response capability is weak. Under the planned system, drug companies export of raw materials by the provincial foreign trade companies, agents, downstream clients are largely controlled by foreign trade companies, at present, some enterprises to set up his own trading company, but some enterprises are still totally dependent on the professional trading company. With the increasingly frequent international exchanges, and the exhibition promote the economy, manufacturing enterprises and end-users the opportunity to communicate face to face more and more gradually to bypass the intermediate links, but there is still some problems: As the middle part of the brand in particular, trade providers, to master a large number of upstream and downstream resources, there is considerable confidence, production enterprises and end customers face to face and establish a stable and in-depth cooperation remains to be seen.
The sale and export of bulk drugs problem in many large state-owned enterprises exist, in some cases even led to the production and sales can not be coordinated, and sometimes production can not meet the requirements of expansion began again after a serious shortage of ability to respond to price difference, we now have to , we believe that the internationalization of enterprises to improve capacity of chemical raw materials, and gradually master the end-customer without delay.
Benefit from the gradual accession to the WTO reflects the
After accession to the WTO, due to the breakdown of trade barriers, domestic quality and cheap products in the international market more competitive. Countries for industrial development API primary goal is to stabilize its domestic market share, and actively expand the export proportion and increasing international competitiveness, the focus is to improve the grade and value-added products, and further play to the comparative advantage of low labor costs, increase high-grade raw material medicine the export share; multi-faceted international markets, especially the potential demand for raw material medicine new markets and expand the scope of export products to reduce excessive dependence on a few major products.
Capital operation to enhance competitiveness
Domestic raw materials, drug companies vary greatly, and vicious competition is very serious. In the securities market, the pure chemical raw materials-based industry, few companies. Is estimated that in the next few years, in the domestic A shares and Hong Kong GEM listed the advantages of raw material drug companies there are about 40-50 at home, they will take center in the capital market, such as Huahai pharmaceuticals, Cheonan Pharmaceutical, Shanghai Desano ; or as a high-quality assets are incorporated into the present among the listed companies, for example, medicine, and so Chifeng Ike.
Domestic raw material drug production enterprises of market positioning and development of ideas is mainly directed against its own characteristics, do a good job market and the development of preparations, especially the part with the technology, the scale advantages of enterprises, transfer of production is currently facing a golden opportunity, we must adapt to the international division of labor environment, and actively with foreign cooperation, speed up the advantages of raw material drug companies in China the process of internationalization, such as the Sino-Italian cooperation in Qilu security for Bio, Xinhua - Ken-fu, AUROBINDO with the collar medicine, HaYao cooperation with DSM, etc., such cooperation is conducive to better participate in the international division of labor, and better export to the downstream end, this also clearly brings technological breakthroughs. Foreign value potential productive capacity of domestic enterprises, the cost adv
by: gaga
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