Active drug substance(API0, usually refers to chemical API, is the active ingredient in chemical drug preparation, which is a variety of powder, crystal, extral,etc. prepared by chemical synthesis, plant extraction or biotechnology for medicinal purposes. In recent years, the global API market has been growing steadily, except for a decline in 2020 due to the impact of the epidemic. It has risen from us $ 130.8 billion in 2015 to US $ 175 billion in 2019, with a compound annual growth rate of 7.5%
Currently, with the increase of a large number of patent expired drugs, the type and quantity of generic drugs increasing, and the continuous growth of API production, the industry is expected to reach 290 billion US dollars by 2026, with a compound annual growth rate of more than 10%. Among them, China’s API market is expected to exceed 400 billion in 2022, with growth rate of 8.1%.
According to the analysis, China's API market has a promising development prospect, mainly for two reasons: First, China's API has always played an important role in the global market, and its position has been further enhanced since 2020 due to the impact of the epidemic. According to the preliminary statistics of China Chamber of Commerce for Import and Export of Pharmaceutical and Health Products, In the first half of 2021, China's API exports reached 19.5 billion US dollars, up 14% year-on-year. Secondly, in recent years, consistent evaluation, evaluation reform and other policies continue to increase, industry barriers gradually increased; The improvement of industry standards driven by pharmaceutical reform has also been laying a foundation for China's API and other related products to compete in the international market in the post-epidemic era.
Therefore, under multiple favorable conditions, the development of China's API industry has been moving forward steadily. In addition to the growing market, China currently has 1,482 API manufacturing bases, most of which do not supply the regulated market and are expected to become mature or relatively mature regulated market suppliers in the next five to 10 years, according to Claricate. At the same time, under the background of more standardized supply of domestic API enterprises, the superimposed industry keeps accumulating advantages in cost, R&D and other aspects, as well as the reconstruction of global supply chain caused by the epidemic, the development of China's API industry will embrace more opportunities
It is worth mentioning that in the current background of promising prospects in the API industry, in order to better undertake the good news, domestic pharmaceutical companies have actually started to make continuous actions. For example, a series of large-scale API projects newly built or expanded by a large number of enterprises are being started one after another. At the same time, some pharmaceutical companies have also started the transformation of green development, high value-added products and other directions.
For example, Wanyou Material plans to continue to adhere to the concept of green development and strengthen the resource utilization of by-products in the production process. Promote innovation and upgrading of production technology and green and low-carbon industrial transformation; It aims to achieve green, intelligent, lean and globalized API production.
However, some analysts believe that with the steady growth of the API market, the industry concentration will continue to improve, and some small and medium-sized enterprises that cannot meet the needs of the industry will be eliminated in the future. In this context, domestic API enterprises should accelerate innovation and promote the transformation and upgrading of the industry to the direction of green, low-carbon and high-quality development