Corporate News

Antibiotic intermediates market is bullish, a new round of reshuffle stage
Release time:2017/6/5[BACK]

The storm of the "strictest environmental protection law" has struck, and the new environmental protection law officially came into effect on January 1 of this year. Environmental pressure has caused some antibiotic intermediate 7-ACA enterprises to fall into a production halt dilemma. Not only has the quotation stopped, but the market is bullish, and the industry will also enter a new round of reshuffle stage.
According to Shanghai Securities News, since the first quarter of this year, the market supply of antibiotic pharmaceutical intermediates has decreased, and prices of various varieties have increased. Among them, 7-ACA has the highest price elasticity, increasing from last year's level of 500 yuan/kg to the current level of over 700 yuan/kg, and prices are expected to gradually rise within the year.
It is reported that the raw material pharmaceutical industry may become one of the most affected industries under the new environmental protection laws and policies. Especially with the high pollution and emission characteristics of antibiotic raw material drug intermediates, coupled with the fact that most enterprises have not invested enough in environmental protection in the past, the environmental pressure faced by this industry is particularly significant. Industry experts believe that if regulatory authorities continue to strictly enforce the law and do not relax, it cannot be ruled out that the overall reshuffle of the antibiotic raw material drug industry and the continued rise in prices will not be ruled out.
As is well known, in recent years, relevant departments such as the National Health and Family Planning Commission have implemented antibiotic restriction policies, resulting in a sharp decline in the use of antibiotic formulations at hospital terminals, leading to an oversupply of pharmaceutical intermediates for antibiotics in China. The price of raw material drug 7-ACA fell to a low point of 450 yuan per kilogram in the first half of last year, which is still fresh in memory. In this situation, the domestic 7-ACA pattern has also undergone changes, with companies such as Zhuhai Federation, Fukang Pharmaceutical, and Shandong Qilu having withdrawn from 7-ACA production and shifted to domestic procurement.
Under the pressure of national environmental protection this year, small enterprises without environmental protection qualifications will also withdraw from the game and hand over market opportunities to high-tech enterprises with high environmental investment, ecological friendliness, and emphasis on energy conservation and emission reduction. The supply and demand pattern of raw material drug 7-ACA has quietly changed, and the market prospects are gradually becoming clear. At the same time, the industry as a whole is also moving towards a new pace of structural adjustment and transformation towards green and environmentally friendly new products.