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What does chemical pharma mean?

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2023-07-05

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  Chemical pharmaceutical refers to the production process of chemical drugs, which consists of two parts: the production of APIs and the production of pharmaceutical preparations. APIs are the material basis of drug production, but they must be processed into pharmaceutical preparations suitable for taking before they become drugs. From the industrial chain point of view, the upstream of chemical pharmaceutical mainly includes basic chemical raw materials, pharmaceutical intermediates, pharmaceutical excipients, pharmaceutical equipment, medical packaging materials, pharmaceutical research and development services; the midstream link is mainly subdivided into two aspects, namely, chemical APIs and chemical preparations; and its downstream industry mainly refers to the places where the chemical drugs are applied, including medical institutions, health service institutions, pharmacies, e-commerce platforms, supermarkets and so on, and ultimately flows to the The ultimate flow to the patient population. In recent years, China attaches more and more importance to the standardisation of the API industry, and has introduced relevant policies and regulations such as "consistency evaluation of generic drugs", "centralised volume purchasing" and environmental protection verification, which makes the degree of standardisation of China's pharmaceutical market and the barriers to entry gradually improve. This makes the degree of standardisation and barriers to entry in China's pharmaceutical market gradually increase, and the concentration of the industry increases, and high-quality API companies will continue to profit. Under the background of band purchasing, some chemical API enterprises aim at the preparation of profit space, quickly cut into the downstream preparation market to achieve "API + preparation" integration, specifically, API + preparation integration can significantly reduce costs, is currently the focus of the layout of the direction of the raw material drugs and generic drug companies, the relevant API enterprises to the upstream pharmaceuticals Relevant API companies to expand to the upstream pharmaceutical intermediates and downstream preparations, with the cost advantage to seize market share, so as to have a stronger competitive barriers. Integration of APIs and preparations has become the mainstream trend of industry development.
*** Translated with www.DeepL.com/Translator (free version) ***

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