China's raw material medicine exports entering a relatively stagnant period

Business Club on November 12th at the 65th China International Pharmaceutical Raw Material Medicine Conference, the experts disclosed to reporters, "China's bulk drug exports after a rapid growth of 20% or so in 3-4 years, 2009-2010 entered The period of relative stagnation has shown that the value orientation of China's raw material and pharmaceutical exports needs to be changed, and that products urgently need structural upgrades."

The 65th China International Pharmaceutical Raw Material, Intermediates, Packaging, and Equipment Fair was held on November 10-12 at the Suzhou International Expo Center with the theme of “Green API, Entering the New Pharmaceutical Age”. A total of more than 1,000 raw material medicines, intermediates, auxiliary materials, chemical additives, natural extracts companies attended the exhibition, covering almost all aspects of China's raw material drug development, production, and sales.

Ms. Wu Huifang, general manager and chief researcher of Beijing Dongfang Bit Technology Co., Ltd. said that according to the statistics of the company, total imports from January to August this year increased by 29%, and total exports increased by 19%. There are two major features in terms of exports: First, the prices of some proprietary and scarce raw material medicines continue to rise; on the other hand, China’s dominant APIs have caused export prices to decline due to excessive domestic production capacity or excessive competition. Shrinking transactions, such as vitamin C and penicillin.

Taking Vitamin C as an example, in the first three quarters, the gross profit margin of the industry fell from 50% to 30%, and the export price dropped significantly, and it went out of the high profit period of the previous three years. Until now, vitamin C prices have not yet reached the bottom.

Wu Huifang pointed out that as the exchange rate of the U.S. dollar against the RMB continues to increase, although China’s export sales of raw material medicines are still increasing, the future growth has been limited. What is more noteworthy is that more and more multinational companies have already carried out the research and production of original research brands in China to reduce costs. She reminded the manufacturers that they must pay attention to this issue. “At present, the export price of the 7ACA is an average of 800-850 yuan/kg, while the import price is 797-813 yuan/kg, and the import price is lower than the export price."

At the same time, Ms. Shen Xianji, deputy director of the Expert Committee of the China Chemical Pharmaceutical Industry Association, pointed out to reporters that global demand will shrink to a certain extent next year. She suggests that export companies should retain market share in Europe and the United States, while maximizing domestic market share, and adjusting from price competition to Differentiated competitive strategy.

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