It is evident from the aforementioned policy trends that the API industry will focus on green, specialty, and high-end development in the future. This will force some small-scale producers to exit the market, further increase industry concentration, and bring certain opportunities to API manufacturers.In this regard, experts suggest that API enterprises should increase investment in environmental protection, carry out industrial upgrading, improve production processes, and enhance pollution treatment capabilities. Only in this way can they achieve sustainable development, seize structural opportunities, and continuously expand their share in the high-end market.
In recent years, a number of Chinese enterprises have been actively promoting the transformation and upgrading of the API industry. For example, many domestic API companies have produced and sold specialty APIs and intermediates for antiviral, anti-infective, cardiovascular, cerebrovascular, endocrine and other therapeutic drugs, and have achieved positive results. Meanwhile, some finished pharmaceutical companies with generic drug businesses are forming upstream and downstream integration, emulating advanced foreign enterprises to adopt an advanced model of coordinated development of APIs plus finished dosage forms, and beginning to move into higher tiers.
In addition, a group of pharmaceutical companies intend to expand their API market share by planning new API production bases. For instance, Jingxin Pharmaceutical recently announced that its board of directors had approved the Proposal on Foreign Investment in the Establishment of a Wholly Owned Subsidiary, agreeing to invest 120 million yuan in self-owned funds to set up a wholly owned subsidiary and build a new API production base in Weifang, Shandong Province, so as to enhance the company's market competitiveness in APIs and high-end pharmaceutical intermediates.
In the future, as China's drug review policies gradually align with international standards, the domestic API industry will undergo profound changes. Besides further improvement in industry concentration, enterprises producing high-quality APIs will gain significant advantages in strategic status and bargaining power, ushering in a golden period of development.
