China is the world’s second largest raw material drug producer and the largest exporter of APIs. In 2006, the export of raw materials for chemical drugs was 2,101,200 tons, an increase of 30.25% over the same period of last year. The export value was US$6.571 billion, a year-on-year increase of 22.31%, and continued to maintain a strong growth momentum. However, in view of the above, the growth rate of “amount†is less than the increase of 7.94 percentage points of “quantityâ€, indicating that the export price is falling. This is a sign of concern.
At the 7th World Pharmaceutical Raw Materials China Exhibition Forum held in Shanghai recently, industry experts pointed out that under the background of economic globalization, the Chinese raw material pharmaceutical industry should be cautiously optimistic and must realize a strategic shift from comparative advantage to competitive advantage. China's comparative advantages in the loss of the world's new raw material pharmaceutical industry formed a new pattern: Europe is engaged in the production of high-end APIs, and China and India are engaged in the production of low-end APIs. For a long time, China's raw material pharmaceutical industry has been participating in international division of labor and cooperation with comparative advantages of low cost and low environmental protection requirements. The production volume has reached a certain scale, accounting for approximately one quarter of the global trade in raw material drugs. However, this comparative advantage of low cost is weakening.
First, the environmental protection costs of raw material medicine industry will rise sharply. China's "Pollutant Industry Pollutant Discharge Standard" has been completed draft, waiting for the approval of the State Environmental Protection Administration and the State Administration of Quality Supervision; it is reported that it may be implemented from January 1, 2008. This mandatory standard will increase the raw material drug company's cost by 5 to 10%. The China Chemical and Pharmaceutical Industry Association pointed out that at present, most companies are unable to meet the requirements of the new standard. The country must invest at least 10 billion yuan to renovate existing devices in order to solve the problem. If the new standard is implemented starting from January 1st of next year, the preparation time is not much, and some companies may face the danger of stopping production.
Second, the central bank adjusted the exchange rate of the renminbi against the US dollar. The appreciation of the renminbi continued to accelerate in the past two years. This is a major bearish for raw material companies and it is estimated that there are more than 6% impact factors on pharmaceutical costs.
The third is the decline in export tax rebates. As China has a large trade deficit, the Ministry of Finance and the State Administration of Taxation have issued the "Notice on Decreasing the Tax Rebate Rates for Certain Commodities", starting from July 1, including exports of certain chemicals and raw materials. For commodities, the tax rebate rate is reduced to 9% or 5%.
In addition, over the past few years, China's raw material exports have been frequently subjected to international anti-dumping and anti-monopoly sanctions, of which 50% are from India, 20% from the EU, and 10% from the United States.
The rise of India as a competitor shows that the Asia-Pacific region will become the fastest-growing region for global raw material drug production in the next five years, with an average annual growth rate of 13.7%. The most prominent of these is India, which currently ranks third in the world in the total volume of bulk drug sales, and will maintain an annual growth rate of 19.3% over the next five years, reaching US$4.8 billion by 2010, surpassing Italy to become the world’s second-largest bulk drug producer. .
In general, the level of India's pharmaceutical industry has surpassed that of China. Although India can produce more than 400 kinds of APIs and more than 60,000 kinds of medicines, which is similar to that of China, and the amount of exports is basically similar, 60% of APIs and 25% of finished products are exported to the international market, while China mainly exports. It is a raw material drug with a low added value, and the export of western medicines is less than 4% of the total amount. The technological content of Indian products is higher than that of China. At present, India has obtained about 260 kinds of cGMP-certified raw material medicines, and China has less than 50 kinds. By the end of last year, India had registered 450 items in the FDA, which is much higher than that in China; the first two months of the year In India, there are an additional 27 DMF files registered, compared with only 5 in China.
In the aspect of enterprise's extroversion, India has more than 200 state-level pharmaceutical companies and more than 20,000 small and medium-sized pharmaceutical companies; the largest ten companies account for one-third of the domestic formula drug market, of which three can be regarded as multinational companies. In recent years, Indian pharmaceuticals have begun to take the path of overseas expansion. Some large and medium-sized pharmaceutical companies plan to invest US$0.35 billion to US$3.5 billion over the next year and a half to acquire European, American, and South American pharmaceuticals. Currently India has four joint ventures in China and is seeking to reduce costs through the outsourcing of Chinese suppliers through pharmaceutical intermediates. China has not yet established pharmaceutical manufacturing and operating companies in India.
In terms of research and development, according to foreign practice, an R&D innovation company spends at least 15% of its annual sales on new product development. India has reached about 6% in 2005 and plans to rise to about 12% in the next two years. Pharmaceutical companies only account for an average of 3%.
The realization of the upgrade to competitive advantage Facing the new trend of international competition, China's raw material pharmaceutical industry must make progress with change and achieve industrial upgrading. Wu Jianwen, vice president of Shanghai Pharmaceuticals Group Co., Ltd., proposed that, on the basis of maintaining comparative advantages, China should vigorously increase the efficiency of the allocation and use of resources and elements in China, and build and continuously improve its international competitive advantages. This is to ensure the continued development of China's bulk pharmaceutical industry. only way.
Experts believe that the key factor in upgrading from a comparative advantage to a competitive advantage is technological progress. The first is to increase investment in environmental protection and solve pollution problems at a high standard. The second is to increase investment in innovation and embark on a road of technological progress that suits China’s national conditions with less investment, less risk, and higher returns.
Some experts pointed out that adopting a "catch-up strategy for mimicking innovation" to achieve a competitive advantage is more suited to China's actual conditions. In the process of participating in the international division of labor and collaboration, some Chinese companies actively sought out technologies that were intentionally or naturally exported, actively accepted technological spillovers, and sought resources for global patent drugs to expire, accelerated independent research and development, and promoted the upgrading of the domestic raw material pharmaceutical industry structure. It is necessary to realize the industrialization goals of the 20 products with high growth potential and high added value that are proposed in the National 11th Five-Year Development Guidance Opinion for the Pharmaceutical Industry through innovation in process, technology, and equipment. We must also actively strive for a group of products that have passed the international registration certification and become one of the target countries for the outsourcing business of multinational pharmaceutical companies, striving to have more high-grade products exported. This has led to a multi-pronged approach to create a new international market competitive advantage for Chinese raw material drugs.
Digital Printing
Digital Printing,Cotton Nylon Fabric,Solid Color Fabric,Cotton Poplin Fabric
Shaoxing MingFang Textile Co., Ltd , https://www.printings-fabrics.com