The API industry will usher in drastic changes

Recently, the Ministry of Industry and Information Technology issued the "Response to Recommendation No. 9883 of the Third Session of the Thirteenth National People's Congress". This document is a response to the support for the establishment of a national API production base in Lianyungang proposed by Quan Taiqi and other three representatives.

This document once again mentioned that in December 2019, the Ministry of Industry and Information Technology, in conjunction with the National Health Commission, the Ministry of Ecology and Environment, and the State Food and Drug Administration, formulated and issued the "Guiding Opinions on Promoting the Green Development of the API Industry". The introduction of opinions will have a profound impact on the API industry!

Raw material drug companies will be eliminated at an accelerated pace, and the raw material drug industry will usher in drastic changes!

The investigation and evidence collection of this case took 6 months. The investigation and evidence collection process was like a tortuous TV plot. It was also falsely claiming that the data was flooded and lost in a traffic accident; it was also grabbing evidence, tearing up evidence on the spot, and dismantling the hard drive. Concealing, transferring, deleting data, and wounding law enforcement personnel.

The circumstances of this case are serious and bad in nature, and the State Administration for Market Regulation decided to impose severe penalties on the parties in this case (the three companies have punished a total of 325.5 million yuan):

* Confiscated 108.9 million yuan of illegal income from Shandong Kanghui Pharmaceutical Co., Ltd., and imposed a fine of 10% of 2018 sales, totaling 143.8 million yuan; a total of 252.7 million yuan.

*Weifang Puyunhui Pharmaceutical Co., Ltd. confiscated 6.05 million yuan of illegal income and imposed a fine of 9% of 2018 sales, totaling 48.3 million yuan; a total of 54.35 million yuan.

*Weifang Taiyangshen Pharmaceutical Co., Ltd. confiscated 6.05 million yuan of illegal income and imposed a fine of 7% of its sales in 2018, totaling 12.4 million yuan; a total of 18.45 million yuan.

Listed pharmaceutical companies expand production of APIs

Although there are many problems in my country's API industry, some companies are still optimistic about APIs and invest and expand production.

Since 2020, four listed pharmaceutical companies in the A-share market have successively thrown out plans for non-public issuance and refinancing to expand the production of APIs, namely Aoxiang Pharmaceutical (603229.SH), Onglikang (002940.SZ), Guangshengtang (300436.SZ) and Fuxiang Pharmaceutical (300497.SZ).

Specifically, among the four companies, Fuxiang Pharmaceutical has the largest plan to refinance. The company plans to raise a total of no more than 1.064 billion yuan. After deducting issuance costs, it will be used for the construction of high-efficiency penem antibiotics, with an annual output of 616 For the tonavir intermediate project, the former is an antibiotic product, and the latter is an antiviral product.

Anglikang and Guangshengtang both plan to raise funds of about 500 million yuan through non-public issuance, of which Anglikang plans to use 5 tons of Doxofylline and 20 tons of Potassium Hydroxide and other API projects; Guangsheng It is planned to be used in the "Construction Project of Integrated Production Base of APIs and Preparations", "Jiangsu Zhongxing Preparation Workshop Construction Project", etc. In addition, Aoxiang Pharmaceutical also plans to raise a total of no more than 350 million yuan for the construction of specialty APIs and key pharmaceutical intermediates production bases.