Characteristics of pharmaceutical intermediate industry

Looking at the whole industry, there are six characteristics in the production of pharmaceutical intermediates in China:

First, most of the production enterprises are private enterprises with flexible operation and small investment scale, basically between millions and 120 million yuan;

Second, the geographical distribution of production enterprises is relatively concentrated, mainly in Taizhou, Zhejiang Province and Jintan, Jiangsu Province as the center;

Third, with the increasing attention paid by the state to environmental protection issues, the pressure on production enterprises to build environmental protection treatment facilities has increased;

Fourth, the product updates are fast. After a product is generally marketed for 3-5 years, its profit margin drops significantly, which forces enterprises to constantly develop new products or improve production processes to maintain high production profits;

Fifthly, because the production profit of pharmaceutical intermediates is higher than that of chemical products, and the production processes of the two are basically the same, more and more small chemical enterprises have joined in the production of pharmaceutical intermediates, leading to increasingly fierce disorderly competition in the industry;

Sixth, compared with APIs, the profit margin of intermediates is low, and the production process of APIs and pharmaceutical intermediates is similar. Therefore, some enterprises have not only produced intermediates, but also started to produce APIs using their own advantages.