As a later comer in global industry, the low-end entry, economies scale and cost advantage are the weapons for rapid rise of Chinese API industry.
After 20 years’ rapid development, as the world's largest supplier in APIs and pharmaceutical intermediates, China has built its strong international position.
Due to the global economic situation improves and the pharmaceutical market increased demand, import and export of Chinese medicine to achieve a faster recovery of growth. Pharmaceutical raw materials importers in Europe and the United States attaches great importance to the long-term transactions, pay more attention to the brand and reputation, and Indian traders care about is the price of the product, this is undoubtedly to some of China's lack of awareness of new enterprises and small and medium-sized enterprises with to business opportunities. Penicillin production enterprises in China are transferred to the downstream products industry, downstream products of penicillin on the major markets in exports was substantial growth in Spain, Indonesia, Germany and Japan’s exports increased by 217%, 63%, 528% and 361%.
Today, generic drugs have rapid development. There are 4 or 5 companies in production of the same drug irinotecan after the large-scale patent medicine lift. It will inevitably lead to the patent medicine prices fell, the market demand of such bulk drugs will greatly enhance. In the next few years, demand for generic bulk drugs will be about 15 percent compound annual growth rate, which also provides a huge growth opportunity as the world's largest generic pharmaceutical raw materials producing countries, China. In addition, many special features of the raw material medicines due to cost and price advantage, the advantage of scale, a high market share in the international market, other countries can not be replaced in the short term, the characteristics of bulk drugs manufacturers into a booster.
With the increasing competition of bulk drugs industry, the raw material drug companies in the past few years, signs of diversification, the emergence of a number of industry custom and commission processing contract-based enterprise. Raw material drug companies in China have begun to fine high-end products from the production of extensive low-end intermediates to change, to keep the downstream supply chain extension and transfer of deep processing capacity. At the same time, domestic enterprises have begun to actively obtain international certification, the quality of the API has been greatly improved.
With the advantage that multinational pharmaceutical raw materials suppliers transfer manufacturing operations to China, and relying on the Chinese pharmaceutical raw materials, Chinese pharmaceutical may posses an important position in world's generic drugs prosperity. Currently, the major raw material drug companies increase the strength of new product launches and market cultivation. This is undoubtedly another development opportunity for raw material drug companies. After many years’ unremitting efforts, China's raw material drug companies should seize the historic opportunity for industry development and speed up the sustained and healthy development in production and trade of pharmaceutical raw materials.
Source:http://www.cospcn.com
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