China Business Intelligence Network News: Pharmaceutical intermediates are a kind of fine chemical products in the production process from pharmaceutical chemical raw materials to APIs or drugs. The synthesis of chemical drugs depends on high-quality pharmaceutical intermediates. This kind of chemical product does not require a pharmaceutical production license and can be produced in an ordinary chemical plant. As long as it reaches a certain level, it can be used for the synthesis of pharmaceuticals.

Market size

In recent years, due to the increasingly stringent regulatory requirements for drugs, the increasing difficulty of drug research and development, and rising prices, multinational pharmaceutical companies have in order to shorten the time to market for patented drugs, reduce R&D and production costs, and maintain good profitability throughout the drug life cycle. Improve its own operating efficiency, gradually shift from a "vertical integration" business model to a "development cooperation" business model, professionally decompose the research, development, and production of patented drugs, and outsource them to pharmaceutical contract research companies and pharmaceutical customized R&D Manufacturing companies and other professional organizations, namely, customized R&D and production of pharmaceuticals. Data show that the size of my country's pharmaceutical intermediates market has increased from 226.8 billion yuan in 2015 to 265 billion yuan in 2017. China Commercial Industry Research Institute predicts that my country's pharmaceutical intermediates market will not see a large increase in recent years, and the market size will reach 220.8 billion yuan in 2021.

Data source: Compiled by China Commercial Industry Research Institute

Future development prospects

1. Global pharmaceutical market demand continues to grow

Since 2000, the growth rate of the global generic drug market has caught up with and surpassed the growth rate of the global pharmaceutical market. In the next few years, the growth rate of the generic drug market will continue to maintain a high level, becoming the growth of global pharmaceutical expenditures, especially emerging medicines. The main driver of market growth. In the next 5-10 years, the generic drug market will continue to maintain a relatively high growth rate and become an important growth pillar for the global pharmaceutical market, especially the pharmaceutical market in developing countries.

2. Global pharmaceutical intermediates and API industry transfer

Driven by the rapid development of the global pharmaceutical market, under the background of fierce drug price competition, due to cost control considerations, the raw material medicine and pharmaceutical intermediate industries need to transfer to developing countries with cost advantages. However, developing countries such as China and India have become key regions to undertake the transfer of global APIs due to their relatively good technical basis for APIs and intermediates. The above-mentioned cost advantages of Chinese enterprises, together with the relative maturity of the domestic basic chemical industry and labor supply, and the complete set of conventional pharmaceutical equipment, constitute the core force of my country's API and pharmaceutical intermediate industries to participate in global market competition.

3. Support of national industrial policy

The pharmaceutical industry is an important part of my country's national economy and is closely related to people's health. It is an important industry related to the construction of a harmonious society. In recent years, the state has adopted a number of measures to encourage and promote the healthy development of my country's pharmaceutical industry. Many policies clearly point out that, demand-oriented, encourage the imitation of clinically necessary, effective, and in short supply drugs, encourage the imitation of drugs needed for the prevention and treatment of major infectious diseases and rare diseases, and promote enterprises to strengthen the research and development of pharmaceutical raw materials and packaging materials. Use new materials, new processes, new technologies, improve quality, and so on.

For more information, please refer to the "Research Report on the Market Prospects and Investment Opportunities of China's Pharmaceutical Intermediates Industry" issued by the China Commercial Industry Research Institute. At the same time, the China Commercial Industry Research Institute also provides industrial big data, industrial intelligence, industrial research reports, industrial planning, and industrial parks. Planning, the 14th Five-Year Plan, industry investment and other services.