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    Home > Chemial News > Pharma News > China's export volume of raw materials increased by 16.68%

    China's export volume of raw materials increased by 16.68%

    Echemi 2020-09-11

    According to the analysis of the 2020 semi-annual reports of many pharmaceutical companies, it is found that in the first half of 2020, the growth of API-related business has become the profit driving force of many pharmaceutical companies. Among the API products, penicillins, lincomycins, Sulfonamides, chloramphenicol, hormones, etc.

    Among the reasons for the increase in sales and sales of API-related businesses, it was found that many pharmaceutical companies mentioned the impact of the epidemic in their annual reports.


    Export volume of raw materials reached 3.8971 million tons

    Statistics from the China Chamber of Commerce for Import and Export of Medicines and Health Products show that from January to April, the export volume of my country's APIs increased by 16.68% to 3.8971 million tons; the export volume of APIs reached US$11.841 billion, an increase of 5.35% year-on-year. Among them, pharmaceutical companies such as Tianyu Co., Ltd., Huahai Pharmaceutical, and Puluo Pharmaceutical are involved.

    The annual report of Prologue Pharmaceuticals for the first half of the year showed that in the first half of this year, it achieved operating income of 3.992 billion yuan, a year-on-year increase of 12.46%; realized a net profit of 429 million yuan, a year-on-year increase of 52.93%. In the first half of the year, the bulk drug business maintained steady growth, achieving operating income of 3.020 billion yuan, an increase of 15.41% over the same period last year. The bulk drug business revenue accounted for 75.65% of the company's overall revenue.

    It is understood that the business scope of Prologue involves the production of API intermediates such as oral cephalosporin series, oral penicillin series, and spirit series. The company’s semi-annual report "Operation Highlights in the Reporting Period" report shows that during the reporting period, faced with a severe new crown epidemic at the beginning of the year, the company initiated emergency response as soon as possible. The company took measures in the API business and the company recovered as quickly as possible Full production.

    According to the 2020 semi-annual report of Huahai Pharmaceutical, operating income was 3.306 billion yuan in the first half of the year, a year-on-year increase of 24.60%; net profit attributable to shareholders of listed companies was 578 million yuan, a year-on-year increase of 72.77%. The semi-annual report shows that the net profit for the reporting period increased significantly compared with the same period last year, mainly due to the significant increase in sales of domestic preparations and APIs.

    According to the semi-annual report, Huahai Pharmaceutical's main business activities are R&D, production and sales of APIs, intermediates and finished drugs. In terms of APIs, the company’s main products include specialty APIs such as cardiovascular, central nervous and antiviral drugs. The company’s cardiovascular APIs are mainly Pristine and Sartan drugs, which are the world’s major Pristine and Sartan drugs. Supplier of Tan APIs. Central nervous system raw materials are mainly levetiracetam, paroxetine and so on.

    Tianyu's operating income in the first half of the year was 1.332 billion yuan, and sales of raw materials were 878 million yuan, an increase of 63.14% over the same period last year and an increase of 23.77% from the previous year. The semi-annual report shows that the company's chemical raw materials and intermediate products are ultimately mainly sold to Europe, the United States, Japan, South Korea and other countries and regions. The company has an integrated supply chain for the production of sartan products from intermediates to APIs.

    65% of my country's APIs are for export

    China's raw material drug production capacity accounts for the highest proportion in the world, about 28%. my country's bulk drug exports account for a relatively large portion, with about 65% of bulk drugs being exported. In 2019, my country's export volume of APIs reached 10.1185 million tons, an increase of 8.8% year-on-year; the export value reached 33.683 billion US dollars, an increase of 12.3% year-on-year.

    APIs mainly refer to related products ranging from basic chemical raw materials to chemical pharmaceutical preparations. Sun Zhongshi, the National Rational Use Monitoring Office of the Chinese Hospital Association, told the Health Times reporter, “my country is a major producer and exporter of APIs. More than 60% of APIs are sold overseas. The categories involved include antipyretics and analgesics, amino acids, and penicillins. Cephalosporins, tetracyclines, vitamins, aminoglycosides, etc."

    Generally speaking, the bulk drugs are mainly concentrated in Western Europe, North America, Japan, India and China. Sun Zhongshi mentioned that, however, the global epidemic continues to spread. In addition to China, the major exporters of global APIs in India, Spain, and Italy are still severely affected. The supply of overseas APIs has been affected, and the prices of some APIs have risen. This is Chinese APIs. The market brings opportunities.

    "The continuous spread of the epidemic has increased the demand for raw materials such as anti-infection, antipyretic and analgesic products abroad. As my country's epidemic situation is gradually brought under control, the country has promoted the resumption of work and production in an orderly manner, and the supply of domestic raw materials has gradually recovered." Sun Faithfully, the epidemic also brings many challenges to the export business of APIs, such as the substantial reduction in international freight capacity and the resulting increase in freight costs.

    Zhu Renzong, deputy secretary-general of the China Chamber of Commerce for Import and Export of Medicines and Health Products, mentioned in an interview with the media: "Chinese API manufacturers must remain competitive in the international market. On the one hand, they should cooperate with upstream and downstream enterprises in the industrial chain to ensure that Stable supply and establish a strong upstream and downstream cooperative relationship; on the other hand, on the premise that the quality of API products meets the requirements of suppliers, API manufacturers should reduce costs through technological improvement, process transformation or large-scale production. Gain a competitive price advantage."

    Sun Zhongshi also reminded that a lot of waste gas pollutants will be produced during the production of APIs. At present, the domestic supervision of API companies is becoming more and more strict.

    In December 2019, the "Guiding Opinions on Promoting the Green Development of the API Industry" jointly issued by the Ministry of Industry and Information Technology and the State Drug Administration made it clear that in the future, the development of high-end specialty APIs will be accelerated, and backward technologies and products will be eliminated in accordance with laws and regulations. The layout is more optimized.

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