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Opportunities Exist Despite Challenges in China's API Market
Date:11/6/2012

HANGZHOU, China, Nov. 6, 2012 /PRNewswire/ -- From 2002 to 2008, the average Chinese annual growth rate of APIs remained above 24%; in 2009, the total import & export value of APIs reached US$24.271 billion, with an increase of 2.89% year-on-year, which accounts for 49.42% of the total import & export value of Chinese pharmaceuticals. However, in the first three quarters in 2012, China's foreign trading has only increased by 1%-2%, indicating the coming of the most difficult trading time. As we all know, the competition in the global pharmaceutical APIs industry is very fierce and added with the slow global economic recovery, the European and American markets all have limited increases. Also, there is some uncertainty on the continuing increase in the newly emerging medical markets, and the demand in the international pharmaceutical market is not optimistic. All of these factors increase the risk of a downturn in the exporting of Chinese APIs.

Even so, LookChem still believes that the position of Chinese APIs will not be replaced in the global market in the short term. In China, there are more than 7,100 registered pharmaceutical production enterprises, with 4,000 more companies having obtained GMP certificates. There are also 1,600 more API industries that have registered with the SFDA and have the capacity to produce more than 1,600 products among 2,000 kinds of APIs. The number of API products which have obtained GMP certificates has now exceeded 3,700. At the same time, China's API market share occupies over 18% in the global market, ranking the first, while the generic APIs market share has reached above 35%. The international market still has rigid demand when compared with the Chinese API market, with many bulk drugs having some certain price advantages, including vitamin, pe
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SOURCE LookChem
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