CCM>Free Info >News Update>2nd volume No.4>
Last Update: Dec 31st, 2001
Pharmaceuticals & Intermediates
Sample of Market Analysis
I. News Collection
 
Xinhua Kenf to Become the Production Base of Cephalosporin (Last Update: 12/03/2001)
Shandong Xinhua Kenf was established in 1995 by Shandong Xinhua Pharmaceutical Factory and DSM of Holland. The original registration asset is 3 million in USD. Shandong Xinhua holds 49% of the shares and DSM holds 51%. But the director, general manager and financial manager come from the Chinese partner. This joint venture mainly produces bulk pharmaceuticals like cefalexin, cefradine, cefradroxil. The sales value in 1995 is only RMB85 million. In 2001 they invested RMB60 million and built a 500MT/year production line of cephalosporin, becoming one of the largest cephalosporin suppliers in the world. At present the annual sale value is RMB400 million.
 
WTO Brings New Structure for Pharmaceutical Industry (Last Update: 11/01/2001)

After entering the WTO, the Chinese pharmaceutical industry will enter a new structurer.

1) Competition in China means the competition in the world: After WTO China will becomes the major production base of bulk pharmaceutical and preparation; the import & export will increase greatly; the gap between the Chinese product and oversea product will be shorten; and the competition will be severe and the domestic competition means the international competition.

2)Large enterprises will emerge in the next few years: After WTO, maybe 5 year later, some large enterprises, especially those that are listed in stock market, will form and their capability will increase to an extent to compete with oversea companies.

3) Medicine enterprises will engage in multiple business areas.

4) Young men who are expertizing in management will take resposibility in leadership position.

5)The function of government will focus on the economic planning, market supervision and society service.

6) Traditional pharmaceutical industry will combine with the modern technique like network for a better development.

7)The number of enterprise will decrease by about one third in the next 5 years due to the reconstructure or the incorporation.

8)The development of new pharmaceuticals that have Chinese intellegene will be faster than ever, in the sections like TCM, biochemical, bioengineering pharma, gene chip, nutritional tonics, pharmaceutical new materials, etc.

9)The price of medicine will decrease due to the mass supply but it is normal that the price of new drug is higher than the ordinary drug.

10) Western area will become the production base for the bulk pharmaceutical production due to the cheap labor, cheap production cost and diversity of natural resources.

 
Demand for Penicillin Salts Increased (Last Update: 11/01/2001)
Since the second half year 2001 the price of penicillin in China started to increase. By end of October it is RMB94/billion. The main reason is that the supply quantity from international market decrease by 3,000MT/year. But at the same time the production of penicillin salts from China kept increasing. In the first half year 2001, the total production of penicillin salts is 6,275MT, increasing 1,459MT over the same period last year. It is reported that Shanxi Datong Pharmaceutical Company is going to set up a joint venture with an India company to produce penicillin salts and the designed capacity is 3,000MT/year. But it is estimated that apart from the domestic consumption there are some surplus of penicillin salts by 700MT/year. So it is expected that the high price of penicillin can not maintain for long time.
 
Zhejiang to Invest RMB 10 Billion for the Bulk Pharmaceutical Export Base (Last update: 10/27/2001)
Zhejiang Province plans to invest RMB10 billion in the next 5 years to build a bulk pharmaceutical export base in the southeast area of Zhejiang Province, with Taizhou city as the center. This plan has been forwarded to the State Economic & Trade Commission for approval. The aim of this export base is to culture a number of manufacturers whose export value is over USD200 million per year, and to build production base of bulk pharmaceuticals and intermediates. At present, there are over 500 factories in Taizhou city who each annual turnover exceed RMB5 million. It is reported that the production of bulk pharmaceutical and intermediates around Taizhou area accounts to nearly 80% of the total production in China.
 
Development Highlight of Pharmaceutical Industry (Last Update: 10/17/2001)

News from China Chemical Pharmaceutical Association shows that China will focus on the development of the following pharmaceutical areas:

1) biological pharmaceuticals: China began to produce biopharmaceutical since "863" plan. At present there are 15 biopharmaceuticals putting into commercial production. Apart from universities and research institutes, many state own enterprises and private enterprises are also engaging in the research & development of biopharmaceuticals.

2) TCM and herbal pharmaceuticals: WTO is a good opportunity for Chinese TCM and herbal pharma launching in the international market.

3) Ocean pharmaceuticals: The sources of ocean pharmaceuticals in China is plentiful. There are 20,278 ocean species in China and parts of them can be used for pharmaceutical purpose. So far some domestic universities and research institutes are engaging in the research & development of ocean pharmaceuticals.

4) Synthetic pharmaceuticals.

 
Antibiotics Production Keeps Steady (Last Update: 10/16/2001)
In the past few years the production of antibiotics keeps steady, at 40,167MT/year. At present China exports 100 kinds of antibiotics to the oversea market and the annual export value of antibiotics is over USD120 million, the average annual increment being 10%. In 2000 SDA has approved 17 kinds of new antibiotics, covering over 92 enterprises.