Pharmaceutical industry pharmaceutical raw materials into the economy plate - High Speed SD Cards

Be held at Shanghai, in API Industry boom of the past ten years to reach the peak of the background, the current CPHI exhibitors reached 1,562, a record, in the second half so that the next few years, bulk drugs market trend as the industry focus of attention; the exhibition, Chinese medicine Health Products Import and Export Chamber of Commerce in 2008, "China and the world," Medical Forum, we will publish the information during a brief analysis;

Bulk drug industry began to pick up since 2007, into a boom cycle, the strongest in history, the quality of the relevant listed company, fully to the good;

Large areas of raw material medicine, bulk drug raw material producers vitamins most worthy of attention;

Vitamin E as a typical cyclical products in the first quarter of this year, the average price has gone to the highest level in nearly a decade as a more mature production technology, barriers to entry are not high bulk products and related factors from the current analysis of available , VE did not change the cyclical features of the product supply and demand in international markets has not been revolutionary subversion. In 2009 the possibility of adjusting prices are increasing;

Vitamin C supply tensions by Olympic-related business may limit production during the impact, three-quarter will become more prominent, on the Northeast Pharmaceutical will constitute a positive effect. But the incident as a factor, not enough to cause essential changes in market structure.

Huahaiyaoye and medicine is still the sea is the most long-term investment value of the bulk drugs unit, the two companies will show a dual path to promote industry upgrading, Preparation Business of domestic and international markets simultaneously improve a good situation.

1. CPHI meeting point Analysis 1.1. To promote the supply of raw materials decreased drug prices continue to climb in the second half to maintain high bulk drug industry boom of the possibility of running large

2008 years 1-4 month, the Chinese pharmaceutical imports and exports amounted to 10.527 billion U.S. dollars, of which exports 6.668 billion U.S. dollars, up 33.78 percent year on year growth, higher than the year 2007, an increase of 7 percentage points; drug importation is further down.

Pharmaceutical bulk drugs export accounts for 70% of total exports. The first 4 months, the total amount of import and export of bulk drugs increased 29.12% over last year, exports increased by 36.86%.

1.1.1. Volume decline in value up, shrinking the short supply of raw materials created a bull market the drug

The first 4 months of this year, the bulk drug exports since the second half of 2007 continued the trend of decline in exports, while export prices rose rapidly :1-April, the total bulk drug exports fell by 10% above, but the average export price increased by 50% to ensure that the amount of export increased by 36.86%. In accordance with the Export zoning:

China's exports to Asia, the average price of bulk drugs increased by 53.15 percent year on year, exports to Europe increased 45.5%, up 48.48 percent in North America, these three regions accounted for China's API 88.8% of total exports. Since China was the world's largest raw material medicine supplier market, China's export volume declined, resulting in short-term imbalance in the global API market, this is the main raw material drug prices EADS were mixed.

1.1.2. Interleaving multiple negative factors, and promote a substantial increase in production costs

Since the second half of 2007, the Chinese API industry experienced serious challenges, including: (1) the macro level, the rapid appreciation of the yuan significantly reduced the company's profit margins Health Insurance Chamber of Commerce survey, 73% of companies respond by raising the price disadvantage (see Table 1); (2) the policy level, mid-2007, API export tax rebate rate down sharply, forced the company to become a second price rise negative factors. In addition, as has occurred in 07-08 years, heparin incident, diethylene glycol event, more than a vicious incident, stimulants, make the Chinese government and the country of destination API regulators are rapidly enhanced API products for the supervision, forcing many small and medium manufacturers introduced APIs national market; (3) the level of environmental protection, environmental protection and storm effects for the major raw material drug production enterprises, and improve environmental standards in 2008 expected to be very clear, directly led to significant increase in the cost of corporate environmental management; ( 4) the production level, the new "Labor Law" caused by rising labor costs and the prices of food and petroleum products (see Table 1), is the fourth push prices of key raw material medicine.



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