Faced with the huge market opportunities of global generic drugs and the huge demand of high-end markets in Europe, the United States and Japan, many domestic raw material pharmaceutical companies have begun to learn from India’s successful experience, increase the research and development of high-tech products and international market development, and speed up capital operations. Its international competitiveness has enabled China to fully export its products from non-patent raw material medicines and preparations to independent innovative drugs to more developed and emerging countries.
In the first quarter of 2008, APIs (including intermediates) continued to maintain a strong export trend. The export volume of penicillin industrial salt was 3,522 tons, an increase of 2.59% compared with the same period of last year; the export amount of amoxicillin was 878 tons, an increase of 34.06%; the export volume of 7-ACA was 102 tons, an increase of 50.86%; the export of cefazolin sodium was 59 tons, a year-on-year increase. 42.43%; Ceftriaxone exports 160 tons, an increase of 23.89%. In terms of overall analysis, the trend of rational warming in the export of APIs has become increasingly apparent.
Three major factors to push for the export of APIs First, the advent of high-cost era has prompted the rise in raw material drug production costs, narrowing the profitability space, moving to an internationally regulated market, and obtaining better profits. This pushes the rational growth of raw material drug exports.
In particular, some basic raw material costs such as oil, coal, and grain prices rose by 50% to 200% from three years ago; the cost of trade and appreciation of the RMB exchange rate rose by 16%; the financial cost of bank loans rose by up to 40%; and the 2007 Environmental Protection Agency Vigorously promote the online monitoring of wastewater discharge COD, and the “Pollutant Industry Water Pollutant Emission Standard†is about to be implemented, which will increase the cost of environmental protection by at least 10%; “Revision of Pharmaceutical Registration Regulationsâ€, “New GMP Assessment Standardsâ€, and “Labor Contract Law†Implementation has also led to a corresponding increase in the cost of quality assurance and human resources.
Second, raw material drug prices are relatively high in history, and excessively low-cost competition in preparations has resulted in profitability that is not as good as that of raw material drugs. As a phased marketing strategy with rapid sales realization, the export revenue of raw material drugs has increased significantly, and it has also promoted the rational growth of raw material drug exports. Important factors.
Third, the impact of changes in foreign trade policies, promote the rational warming of raw material medicine exports, export tax rebate rate will be further reduced, raw material pharmaceutical companies have increased export efforts before the New Deal, in order to gain more international market share.
The competition of raw material drugs has been upgraded, and the trend of internationalization has accelerated the internationalization of domestic competition. The internationalization of domestic competition has become a new trend in the development of API industry. China has become the world’s largest producer of penicillin, 7-ACA, amoxicillin, and cephalosporins. Harbin, Fukang, Qilu, and Dongrui are cephalosporin antibiotics (cefazoline, ceftriaxone, ceftazidime , cefoperazone, etc.), Lukang antibiotics in veterinary drugs raw materials (tylosin, colistin sulfate, salinomycin, etc.), the sea is anti-tumor, anti-tuberculosis antibiotics raw materials (Doxorubicin, capreomycin Both sides have formed export scale and brand advantages.
DSM has successively joint ventures with Zhangjiakou (producing penicillins), Xinhua (production of cephalexin, Cephalosporins), Indian Orchids and China Pharmaceuticals (cephalosporins), India's Arabindu and Tongling (penicillin), and Meiji Japan Lukang JV (Medycin and Colistin sulfate), Roche and Bristol-Myers Squibb jointly with Shanghai Pharmaceutical (Ceftriaxone, Pyridoxime, etc.), these companies become the main force for the export of APIs.
The combination of raw material drug extension export and capital export combined with raw material medicine lies in extending exports, accelerating international certification, and extending downstream production and export to become a consensus for the development of domestic raw material drug companies, and is also the key to the success of global business operations. At this point, the successful experience of India's API companies has given clear answers.
Although India's pharmaceutical raw material pharmaceutical industry is facing market competition issues and government price controls in recent years, it still maintains an alarming growth trend in sales profitability. The 2006 annual report of the more important 75 pharmaceutical companies recently listed in the Pharmabiz India Pharmabiz showed that Indian pharmaceutical companies achieved sales growth of 23.5% and net profit increased by 44.5% in 2006-2007.
Indian pharmaceutical companies are targeting drug products that lost US$80 billion worth of patents between 2001 and 2007. They have successfully entered the generic pharmaceutical industry in high-end markets such as Europe and the United States through a combination of product exports and capital exports. Innovative generics like Ranbaxy, Dr Reddy, Lupin, and Cipla have been unsatisfied with the domestic market in India. Instead, they focused their attention directly on the United States because their sales in the U.S. market have exceeded sales in India. Up to three times, the proportion of high-end market exports accounted for 20% to 30% of the total sales.
Through the overseas M&A market, developed small and medium-sized pharmaceutical companies under the large multinational pharmaceutical companies, or small and medium-sized pharmaceutical companies in developing countries, and newly-built factories to entrust local pharmaceutical and commercial companies to sell, and successfully develop new generic pharmaceutical raw materials with process patents. The export of drugs and preparations to the regulatory market has become a driving force for India's pharmaceutical companies to achieve rapid market expansion.
In the first quarter of 2008, APIs (including intermediates) continued to maintain a strong export trend. The export volume of penicillin industrial salt was 3,522 tons, an increase of 2.59% compared with the same period of last year; the export amount of amoxicillin was 878 tons, an increase of 34.06%; the export volume of 7-ACA was 102 tons, an increase of 50.86%; the export of cefazolin sodium was 59 tons, a year-on-year increase. 42.43%; Ceftriaxone exports 160 tons, an increase of 23.89%. In terms of overall analysis, the trend of rational warming in the export of APIs has become increasingly apparent.
Three major factors to push for the export of APIs First, the advent of high-cost era has prompted the rise in raw material drug production costs, narrowing the profitability space, moving to an internationally regulated market, and obtaining better profits. This pushes the rational growth of raw material drug exports.
In particular, some basic raw material costs such as oil, coal, and grain prices rose by 50% to 200% from three years ago; the cost of trade and appreciation of the RMB exchange rate rose by 16%; the financial cost of bank loans rose by up to 40%; and the 2007 Environmental Protection Agency Vigorously promote the online monitoring of wastewater discharge COD, and the “Pollutant Industry Water Pollutant Emission Standard†is about to be implemented, which will increase the cost of environmental protection by at least 10%; “Revision of Pharmaceutical Registration Regulationsâ€, “New GMP Assessment Standardsâ€, and “Labor Contract Law†Implementation has also led to a corresponding increase in the cost of quality assurance and human resources.
Second, raw material drug prices are relatively high in history, and excessively low-cost competition in preparations has resulted in profitability that is not as good as that of raw material drugs. As a phased marketing strategy with rapid sales realization, the export revenue of raw material drugs has increased significantly, and it has also promoted the rational growth of raw material drug exports. Important factors.
Third, the impact of changes in foreign trade policies, promote the rational warming of raw material medicine exports, export tax rebate rate will be further reduced, raw material pharmaceutical companies have increased export efforts before the New Deal, in order to gain more international market share.
The competition of raw material drugs has been upgraded, and the trend of internationalization has accelerated the internationalization of domestic competition. The internationalization of domestic competition has become a new trend in the development of API industry. China has become the world’s largest producer of penicillin, 7-ACA, amoxicillin, and cephalosporins. Harbin, Fukang, Qilu, and Dongrui are cephalosporin antibiotics (cefazoline, ceftriaxone, ceftazidime , cefoperazone, etc.), Lukang antibiotics in veterinary drugs raw materials (tylosin, colistin sulfate, salinomycin, etc.), the sea is anti-tumor, anti-tuberculosis antibiotics raw materials (Doxorubicin, capreomycin Both sides have formed export scale and brand advantages.
DSM has successively joint ventures with Zhangjiakou (producing penicillins), Xinhua (production of cephalexin, Cephalosporins), Indian Orchids and China Pharmaceuticals (cephalosporins), India's Arabindu and Tongling (penicillin), and Meiji Japan Lukang JV (Medycin and Colistin sulfate), Roche and Bristol-Myers Squibb jointly with Shanghai Pharmaceutical (Ceftriaxone, Pyridoxime, etc.), these companies become the main force for the export of APIs.
The combination of raw material drug extension export and capital export combined with raw material medicine lies in extending exports, accelerating international certification, and extending downstream production and export to become a consensus for the development of domestic raw material drug companies, and is also the key to the success of global business operations. At this point, the successful experience of India's API companies has given clear answers.
Although India's pharmaceutical raw material pharmaceutical industry is facing market competition issues and government price controls in recent years, it still maintains an alarming growth trend in sales profitability. The 2006 annual report of the more important 75 pharmaceutical companies recently listed in the Pharmabiz India Pharmabiz showed that Indian pharmaceutical companies achieved sales growth of 23.5% and net profit increased by 44.5% in 2006-2007.
Indian pharmaceutical companies are targeting drug products that lost US$80 billion worth of patents between 2001 and 2007. They have successfully entered the generic pharmaceutical industry in high-end markets such as Europe and the United States through a combination of product exports and capital exports. Innovative generics like Ranbaxy, Dr Reddy, Lupin, and Cipla have been unsatisfied with the domestic market in India. Instead, they focused their attention directly on the United States because their sales in the U.S. market have exceeded sales in India. Up to three times, the proportion of high-end market exports accounted for 20% to 30% of the total sales.
Through the overseas M&A market, developed small and medium-sized pharmaceutical companies under the large multinational pharmaceutical companies, or small and medium-sized pharmaceutical companies in developing countries, and newly-built factories to entrust local pharmaceutical and commercial companies to sell, and successfully develop new generic pharmaceutical raw materials with process patents. The export of drugs and preparations to the regulatory market has become a driving force for India's pharmaceutical companies to achieve rapid market expansion.
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