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The Trend of Rapid Increase in Prices of Bulk Drugs is Expected to Continue

Environmental protection trend is becoming stringent, and the competition pattern of the pharmaceutical bulk drugs industry continues to improve


China's production of bulk drugs for medicine occupies an important position globally. From various aspects such as technology and production costs, it has significant advantages. However, in an environment with lax environmental protection regulations, the industry faces severe vicious competition, which continues to dampen the profitability of enterprises. 


As the world pays more attention to the environment, the cost of environmental protection is expected to continue to rise. Consequently, we believe that supply will gradually shrink, substandard production capacity will be phased out, and the competition pattern of high-quality enterprises will continue to improve. Market share and bargaining power are expected to improve significantly. Part of the pharmaceutical raw material enterprises is expected to enter a period of high profit growth except for those with blindly expansive fields


The prices of various pharmaceutical bulk drugs have increased significantly, and the high prosperity cycle is expected to continue. 


As the competition pattern continues to improve, the prices of various raw material products such as vitamins have increased significantly. Some product prices have risen by more than 50%. 


We believe that the competitive landscape of bulk bulk drugss is facing a major change, and in the short to medium term, more bulk drugs prices will rise, and in the long term, the profitability of pharmaceutical bulk drugs companies will return to a reasonable profit range (except in areas of blind expansion).


It is recommended to focus on the price changes of bulk drugss such as Vc, antipyretics and analgesics (ibuprofen, aspirin, etc.) and 6-APA.


Pharmaceutical bulk drugs preparation transformation gradually into a good place, profitability is strongly supported


Affected by the industry downturn, after 2008 most bulk drugs companies to the preparation of extension, most bulk drugs companies are now more than 40% of the preparation of business, become the company's performance of the needle, supporting the sound development of the relevant enterprises.


It is expected that with the promotion of consistent evaluation (most of the mature bulk drugs, corresponding to the number of preparation varieties approved in more than 30), the concentration of the chemical pharmaceutical industry will rbulk drugsdly increase, both bulk drugs, preparation business enterprises, is expected to obtain a new round of development opportunities, with the cost advantage, to create a number of segments of the leading enterprises.


High-quality pharmaceutical bulk drugs enterprises investment value is emerging


We believe that the bulk drugs companies in their respective fields are expected to take advantage of their respective advantages in the field of pharmaceutical preparations show a better development trend, external factors such as environmental protection, consistency evaluation, exchange rates, also conducive to the development of related enterprises.