滕州Market situation of domestic pharmaceutical intermediates

In 2009, the total output value of China's pharmaceutical intermediate industry (including pharmaceutical intermediates and raw materials) was approximately 310 billion yuan, a year-on-year increase of 10.71%. The pharmaceutical intermediate industry has been in a steady growth trend. It is expected that in the context of industrial transfer, the growth of pharmaceutical intermediates in China will exceed the global average, with a future industry growth rate of over 15%, while advanced pharmaceutical intermediates will be faster. Especially with the expiration of a large number of patented drugs worldwide and the mass launch of generic drugs, the demand for intermediates is rapidly growing. In 2010, the scale of China's pharmaceutical customized research and development production market was 1.7 billion US dollars, and it is expected to grow to 3.1 billion US dollars by 2015, with an annual compound growth rate of 12.77%.

Pharmaceutical intermediates do not require production licenses like raw materials, and the entry threshold is relatively low, resulting in fierce competition. Therefore, quality, scale, and management level are often the fundamental factors for the survival and development of enterprises, and the increasing pressure on environmental protection has also led to many small enterprises gradually withdrawing from the competitive stage, and industry concentration is expected to rapidly increase. The following three directions will be the key for relevant enterprises to enhance profitability, increase added value, and sustain growth:

1. Diversified and high-end products, shifting from producing extensive low-end intermediates to fine-grained high-end intermediate products;

2. Take the path of professional outsourcing services, continue to extend the outsourcing service industry chain, and undertake research and development outsourcing services;

3. Focus on pharmaceuticals and attack the raw materials and formulations downstream of intermediates.