The export of raw materials is sluggish, and the global pharmaceutical industry is shifting to Asia

Introduction by Zyzhan: Relevant data shows that in the first half of 2013, the export value of Chinese raw materials was 12.112 billion US dollars, a year-on-year increase of 3.08%; The export quantity was 3.3393 million tons, a year-on-year increase of 7.46%; The average export unit price decreased by 4.07% year-on-year, and the export growth rate is still hovering at a low level.
At present, there is overcapacity and fierce competition in the production of bulk active pharmaceutical ingredients, coupled with slow economic recovery in developed countries and currency depreciation in emerging market countries, which makes it difficult for the export prices of active pharmaceutical ingredients to rise. However, the increase in various costs also leaves little room for export prices to decline.
One of the reasons for overcapacity in some raw material pharmaceutical products is the low technological threshold, easy replication of production capacity, and undifferentiated products. Especially in the process of improving the new version of GMP, rapid fixed assets investment is likely to lead to overcapacity in the API manufacturing industry, which is relatively low in technology, thus reducing the overall profits of the industry and causing vicious competition.
Another main reason for the decline in export profits is the weak ability to digest environmental costs and the rapid acceleration of environmental standards. On the one hand, all costs are rising, and on the other hand, the prices of terminal drugs are constantly decreasing, which brings great difficulties to raw material pharmaceutical companies. In addition, the appreciation of the RMB has also increased the export pressure of bulk raw materials and intermediate products with low added value.
In the first half of this year, China's exports of bulk raw materials to emerging markets increased by 10.03%. Among them, large and medium-sized pharmaceutical companies have increased their efforts to develop emerging markets and the African market, and the number of emerging market manufacturers exported by the top 100 pharmaceutical companies has increased by 12.2%. Against the backdrop of a global economic downturn and sluggish demand for pharmaceuticals, emerging markets have almost become the only way for China to increase its exports of active pharmaceutical ingredients.
In the face of a new round of sluggish export of active pharmaceutical ingredients, the pharmaceutical industry has stated that it will continue to vigorously explore international markets, strive to expand its international market share, actively participate in regional economic and trade cooperation, and effectively solve various problems; Seize the opportunity of the new round of global pharmaceutical industry transfer to Asia, and enhance the ability to undertake international pharmaceutical industry transfer and absorption.
(Source: China Pharmaceutical Machinery Equipment Network)