Low-end pharmaceutical companies face higher technical barriers to upgrade their industries.
Column:Industry Trends Time:2017-12-28
Low-end pharmaceutical companies face higher technical barriers to upgrade their industries.

Although exports last year our country medicine has bottomed out, but recently, the Chinese medicine and health products import and export chamber of commerce (hereinafter referred to as "medicare" chamber of commerce) issued a warning that, this year, our country medicine foreign trade still faces many difficulties, the overall situation is not optimistic.One of the most notable is the increasingly fierce competition in the domestic and low-end pharmaceutical industry.At the same time, as the country requires the medical industry to upgrade, many enterprises are facing the predicament of being eliminated.

Last year medical exports came out of the haze.

Last year, China's imports and exports totaled $60197 million, up 24.57 percent from a year earlier, according to data released by the health insurance association.Among them, exports were $39.733 billion, up by 24.87%.Imports were $20.464 billion, up 23.98 percent.

However, seemingly good export data cannot hide the underlying problems.In October last year, the import and export of Chinese medicine showed a "rare" double dip.At the time, xu Ming, director of the general department of the chamber of commerce, told reporters that in the second half of the year, China's medical exports were in great difficulty due to the exchange rate and rising prices of raw materials.

Mr Hui noted that since June last year, the renminbi's appreciation against the dollar has largely approached the tipping point of corporate earnings.If the 2008-2009 financial crisis erupted, medicine exporters could not get orders, and now they are afraid to answer.In addition, the pharmaceutical export enterprises also face the production cost of a large increase, it is the internal and external problems.

Compared with last year, healthcare chamber of commerce predicts that this year China's foreign trade export, import policy will continue, and foreign trade development in medicine has many advantages, but external uncertain factors still more, slow economic recovery in Europe and America, the domestic pharmaceutical production costs continue to rise, the enterprise operating pressure, medicine and the grim situation of foreign trade.

Middle and low - end medicine homogenization competition is intense.

It is reported that the price of some bulk crude drugs in China is still at a low level. The main problem is the expansion of domestic production capacity, the original balance is broken, and the fierce market competition is triggered.Domestic homogenization competition has become the main factor restricting the export price of API in China.

Data show that China is the world's largest supplier of active pharmaceutical ingredients and pharmaceutical intermediates, which can produce more than 1500 kinds of chemical pharmaceuticals, production capacity of more than 200 ten thousand tons, accounting for about 1/5 of global output above, is the backbone of the pharmaceutical industry in China.In terms of exports, China's API products are more than 50 percent of the export of health care products.

However, in recent years, blind expansion has caused the imbalance of supply and demand of some raw materials in China.Among them, vitamin C was added to the new capacity, and the supply and demand of international market deteriorated further, and the export price plummeted.

"On the one hand, due to homogenization competition, China's API can only play a low price card;On the other hand, the cost of pharmaceutical manufacturing keeps rising and the business pressure of enterprises keeps increasing.This will seriously affect the profits of our pharmaceutical companies."The health care industry says.