Export Of Bulk Drugs To Formulation Exports Urgent Need To Enhance Competitiveness In Transition

When the market price and production cost of inverted

, the strengthening of domestic API Self-operation export market is becoming increasingly important to standardize the market order to improve the export efforts and regulatory standards, accelerate the export of bulk drugs to Preparation Export changes, has become the API to avoid anti-dumping abroad, to achieve an effective international marketing of value-added way.

In the first half, due to the rising costs of domestic raw material drug production, as well as the Olympic Games, environmental protection, the impact of market uncertainties, some of the higher concentration of production based on bulk drugs such as Antibiotic , Vitamins and Antipyretic Drugs in large changes in market prices. It is reported that China's exports to India's bulk drug prices, to India Pharmaceutical companies Brought pressure. It is reported that China's raw material drug production and limit price increases caused by the Indian pharmaceutical industry is the direct cause of the difficulties, just from the two countries Pharmaceutical market The relationship between upstream and downstream industry chain to analyze, this effect may exist, but should not be exaggerated.

Raw material drug production will involve a variety of raw materials and power consumption, including grain and oil products, petrochemicals, water, electricity, steam, wind, cold and other power products, raw materials for bulk drug prices, because the face is more serious global inflation crisis, energy crisis, vulnerable to grain and oil, coal and oil price changes, Indian bulk drugs market is also facing the pressure of the common market.

Surge in the prices of bulk drugs as early as the second half of 2006 had set off, just as serious excess capacity makes up fluctuations in market prices down, undulating. This one is largely due to the cost of raw materials, power cost, quality, cost, environmental costs, labor costs, trade costs, costs of production and operation of rigid conductive driven prices higher. This conductivity increase is a global phenomenon, is also the subject of any competition in the market are difficult to overcome the resistance, the face of high cost raw material drug production and management era, raw material market prices is the general trend.

, Of course, limited by environmental constraints to production of short-term production problems of shortage of raw materials also periodically boosting drug prices rally. Environmental factors on the impact of bulk drug industry in recent years, growing in many drug companies have made huge investments in environmental protection is the example of Chinese Medicine, Harbin Pharmaceutical, Lu Kang, stone medicine, Chinese stars, the sea is, federal and other inputs have been hundred million dollars funding for environmental protection, therefore, environmental factors and limited production, prices will be more interactive relationship between the quality improvement embodied in the environmental operating costs will be driven higher.

Indian bulk drugs are exported to many international high-end market, the relatively high value-added, cost prices and relatively strong response capability. India's bulk drug price control policy is also affected pharmaceutical companies is difficult to digest the import of upstream intermediates, bulk drug prices were significant factors, the Indian Pharmaceutical Pricing Authority, the target price, including bulk drugs and formulations, based on its "drug price law "A total of 74 kinds of raw drugs used are government pricing; Drug Price Board to make pharmaceutical ingredients and preparations of the highest sales price, the price does not include development of local taxes and consumption taxes. Price management departments in accordance with the standard product cost and price estimates the rate of return business. As a manufacturer of raw materials more than one drug, the company's selling price according to the procedures and methods of calculation, take the highest price of 2 / 3 or the weighted average as the common price ceiling.

As India fermented raw material drug production areas and the location of chemical synthesis weak imitation of innovation technical advantages of the basic needs of intermediate and higher raw material medicine, but a large part of the procurement of these products from China . For some excess capacity in the bulk pharmaceutical raw materials, such as penicillin, vitamin E, paracetamol, diclofenac, metamizol, etc. In recent years, when supply exceeds demand in the domestic market enterprises often compete to cheap exports, resulting in the Indian market has frequently initiated anti-dumping . Although China's pharmaceutical companies

penicillin, VC, cortical Hormone Bulk raw materials such as low-cost drug production has made some comparative advantage, but difficult to achieve product quality API technical requirements of European and American countries, exports are mostly reflected in the price advantage. Pharmaceutical production technology level and New Drugs Ability to develop relatively backward, the domestic counterpart of a bulk drug generally only 2 to 3 Formulations, while the average foreign an API corresponding to more than 10 species Formulations.

Export Of Bulk Drugs To Formulation Exports Urgent Need To Enhance Competitiveness In Transition

By: tianli

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