Pharmaceutical Companies How To Deal With The "standard" Cost Pressures

Pharmaceutical Companies How To Deal With The "standard" Cost Pressures

2008 8 1 from country Ministry of Environmental Protection issued a "pharmaceutical industrial water pollutant discharge standards" into effect. The "standard" covers the extraction of pharmaceutical, Traditional Chinese medicine Pharmaceutical, biotechnology pharmaceutical, mixed Preparation Pharmaceutical, fermentation of pharmaceutical, chemical synthesis, pharmaceutical six. Such system Pharmaceutical companies If the industry which need to be discontinued due rectify substandard.

Government agencies and industry associations agreed that the introduction of the new "standard" is the technology behind those who want to eliminate polluting small pharmaceutical companies, the formation of a higher industry concentration. But to meet a "standard" emission requirements, the pharmaceutical companies put the cost of sewage treatment is estimated to double. It is thus clear, following a small pharmaceutical company in turn face new round of price increases after the challenge of increased production costs.

A new "standard" in terms of medium and small pharmaceutical companies is a challenge and an opportunity to

New "standard" implementation, it will certainly force the closure of some small pharmaceutical companies, but the state is definitely not to let all the small and medium enterprises have no chance of survival. The "standard" is like the implementation of environmental protection by the State Department organized a competition among pharmaceutical companies. Judged race to win is required for all emission compliance, competition for two years. However, the "standard" does not mention the winner of the contest incentives.

Fact, small and medium sized pharmaceutical enterprises, the game is very tempting incentive. Through this competition, will have no way out part of the improvement or do not want to improve the pollution of big pharmaceutical companies. This will improve the pharmaceutical industry, generic products due to a high degree of homogeneity of price competition caused by disordered state, so that industry-based product margins. And market capacity of the existing drugs, the manufacturer also means reduced competition to win the average sales revenue of enterprises to upgrade. This would survived the follow-up of all pharmaceutical companies develop more stable, especially much and long "squeeze small pharmaceutical companies, large pharmaceutical companies pressure" of small and medium sized pharmaceutical companies more favorable.

2, medium and small pharmaceutical companies play to their "flexible" advantage to respond to new "standard"

Small pharmaceutical companies because the business is small, the product line is not higher abundance of features to make it relative to the number of large pharmaceutical companies, the variability stronger, more flexible adjustment.

flexible financing business focus into the "pollution" project

Small pharmaceutical companies prepare to make tough fight, can the enterprise available funds are invested in "pollution" project. Funding through a number of ways to increase their money supply. For small and medium sized pharmaceutical companies, the funding approach is flexible, such as: bank lending, capital shares, employee shares of funds, etc., the specific use of what kind of financing or a combination of financing, it is necessary according to the specific business condition of the.

reduce the production cost by strengthening management

In raw material costs and the "pollution" can not change the cost of extra investment when the company may wish to change yourself, by strengthening the management of enterprises to reduce production costs. Also, production costs and hidden from the dominant two common focus on production costs, all management activities are carried out around the costs.

reduce pollution control costs through technology to improve

"Pollution," the success of the project, technology is the key. Small and medium sized pharmaceutical enterprises themselves technological strength If you can not meet demand, you can help a number of research institutes, universities and other related technologies have the resources for his own use, reduce the "pollution" cost.

It is now the "standard" two years of implementation time, as long as companies begin preparing as soon as possible, starting from various arrangements, I believe to "standard" requirement just around the corner.

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