APIs will usher in a round of price hikes

Recently, the domestic API market has surged. The strengthening of the API sector this time is mainly due to the influence of India's "closing country", which has caused global concerns about drug shortages and concerns about the "cut off supply" of APIs, especially antibiotics. As early as early March, the Indian government restricted the export of some pharmaceutical raw materials, and the total sales of restricted products accounted for 10% of India's total pharmaceutical exports.

Global production of APIs is mainly concentrated in China, India, Japan, North America and Western Europe. The price increase of APIs is mainly affected by the new crown epidemic. On the one hand, the new crown epidemic has greatly increased the market demand for some raw materials. On the other hand, the new crown epidemic has restricted the production and export of the main production areas. Against the background of upgrading, the global API market is expected to usher in a round of price increases!

According to different life cycles, APIs can be divided into bulk APIs, characteristic APIs and patent APIs. Among them, bulk APIs are mature products, and China's advantages are more obvious. The bulk APIs most affected by the new crown epidemic mainly include vitamins, antibiotics, and intermediates; specialty APIs have a higher growth rate, considering the short-term new crown epidemic situation for overseas competition Influenced by rivals, domestic companies are ushering in development opportunities; the threshold for patented APIs is higher and domestic companies are less involved.

Specific to the A-share market, the current global new crown epidemic is still continually escalating, and the market demand for antibiotics and intermediates will continue to increase. Considering that the prices of these APIs are at historically low levels, there is a large room for future growth, and related listing The company includes Fuxiang Co., Ltd., Jincheng Pharmaceutical, Kelun Pharmaceutical, etc. In addition to the logic of price increase, domestic characteristic API companies also have substitution logic. Related listed companies include Huahai Pharmaceutical, Jianyou Co., Ltd. and Stellite.

According to market public information, the relevant concept stocks include: Fuxiang, Kelun Pharmaceutical, Huahai Pharmaceutical, Stellite, etc.