| By Liu Yuanyuan, Asia Manufacturing Pharma |
| Wednesday, 27 May 2009 |
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The hottest topic at this year’s API China is how to address the challenges brought about by a continued downward trend in China’s bulk pharmaceutical trade during the first three months of 2009,
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a decrease in export orders at the recent China Import and Export Fair (Canton Fair) and the global economic recession’s effect on Chinese bulk pharmaceutical businesses and the sector overall.
Nevertheless, the participants expressed their confidence in the sector at the fair. Leadership by domestic players in international markets will not be threatened and the domestic market will face greater expansion opportunities with the new health reform policies.
Shen Xianji, director of the Expert Committee of China Pharmaceutical Industry Association pointed out that excess capacity, reduced purchasing power, uncertainties and rising trade
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protectionism in the bulk pharmaceutical market have brought about operational risks for many
pharmaceutical companies. Fierce price competition in the domestic market persists, however, excess capacity as well as inefficient and redundant projects will lead to continued price wars among bulk pharmaceutical businesses.
According to statistics from China Chamber of Commerce for Import & Export of Medicines & Health Products (CCCMHPIE), China’s foreign trade in bulk pharmaceuticals totaled US$3.1 billion for the first two months of 2009, a decrease of 15.2 percent over the same period last year, with imports dropping by 21.3 percent to US$813 million and exports declining 12.7 percent to US$2.3 billion year-on-year.
Technology innovation is the best solution for businesses to enhance their presence in the bulk pharmaceutical market, and companies should take advantage of the country’s favorable policies while strengthening joint technology |
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research, said Cai Dongchen, chairman of CSPC Pharmaceutical
Group. According to reporters at the fair, many bulk pharmaceutical providers did not quote prices for their products, as the prevailing low prices for their products are almost at cost.
The significant rise in the prices from upstream suppliers has put great pressure on downstream businesses. If the pressure can’t be relieved at the sales points, the pressure is expected to turn back on the upstream businesses. Accelerating the optimization and upgrading of the bulk pharmaceutical industry’s structure has reached a critical point.
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