Pharmaceutical packing materials prices surge in China
By Liu Yuanyuan, asia-manufacturing
Thursday, 28 February 2008
“Prices for pharmaceutical packing materials are really skyrocketing”, Wuhan Zhonglian Pharmaceuticals Group’s general manager, Wang Yunping said, “with the average price for the paper packaging
up about 20 per cent".
Prices for drug packing materials are soaring at a far higher rate than the raw ingredients for the pharmaceuticals themselves, bringing pressure to bear on Chinese domestic pharmaceutical firms.
In addition to the paper packaging, prices for other pharmaceutical packing materials, including pharmaceutical glass tubes, gelatin capsules and butyl rubber closures are also on the rise.
The China Pharmaceutical Packaging Association (CPPA) said the surge in prices of drug packing materials is inevitable as prices of upstream raw materials that go into the packaging have been rising for awhile. The raw materials are made up mostly of oil products and glass, the costs of which have soared in the last two years due to the continuing rise in oil prices, according to the CPPA.
Data shows the significant rise in
production costs of pharmaceutical gelatin was caused by the increased prices for the animals from which the gelatin comes. The rapid growth in the costs of upstream raw materials is resulting in a financial deficit for many pharmaceutical gelatin capsules manufacturers.
Pharmaceutical glasses makers said prices of raw and supplemental materials necessary for producing pharmaceutical glass bottles, including pure alkali, heavy oil and natural gas, as well as other energy sources have grown, on average, 20 per cent since last year.
A large Chinese infusion manufacturer said that the average price for infusion glass bottles has climbed nearly 10 per cent and is likely to keep on rising if the upward trend in the cost of upstream raw materials continues
The surging prices for drug packing materials will come down hardest on manufacturers of generic drugs whose pricings are uniform throughout China, as well as low-cost pharmaceuticals producers, however will have little impact on high-tech companies dedicated to the research and development of new drugs, as new drugs are generally sold at a high price in the market.
The continuing rise in prices for agricultural products has proportionally driven up the prices for traditional Chinese medicinal materials.
With little innovation and excess production capacity, generic drug enterprises are being squeezed from both sides, by the price cuts requested by the Chinese government on the one hand, and the rising costs on the other.
Some pharmaceutical enterprises are striving to offset the impact of rising costs through improving technology and enhancing management, however, at the same time, they are also looking to the government to enact and implement policies that will favor their development.
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