November 12, 2021
Tag: Pharma Intermediates, Intermediate Pharma
The upstream industry for the R&D, production, and sales of pharma intermediates is the basic chemical raw material industry, and the downstream industry is the chemical raw material medicine and chemical-pharmaceutical preparation industry. The upstream of pharma intermediates is the basic chemical raw material industry, and basic chemical raw materials, as bulk commodities, have large price fluctuations, which directly affect the production costs of enterprises.
The shift in the global pharmaceutical industry chain has now increased the demand for raw materials. With the structural upgrading of the pharmaceutical industry in developed countries, the transformation in related industrial chains has occurred globally. In recent years, large international pharmaceutical companies have gradually focused on the R&D and sales of patented drugs, and have outsourced traditional products level by level. Most of the contractors are pharmaceutical companies in emerging countries.
Pharma intermediates are subdivided into primary intermediates and advanced intermediates further. Because primary intermediates suppliers can only provide the production of simple intermediates, they are at the forefront of the industry chain and are subject to the greatest pressure of competition and price. The price fluctuations of basic chemical raw materials have a greater impact on them. Advanced intermediate suppliers not only have strong bargaining power with primary suppliers, but more importantly, they are responsible for the production of the high-tech intermediate pharma and maintain closer ties with multinational companies. Fluctuations in raw material prices have little impact on them.
The downstream industry of the pharma intermediates industry is mainly the production of APIs (active pharmaceutical ingredients), and APIs and preparations are in the relationship of the upstream and downstream industry chains, which means the consumer demand for downstream preparations will directly affect the demand for APIs. With the improvement of people's living standards and the aging society, the demand for medicines has been on the rise for a long time. Therefore, the transmission from finished medicines to APIs has greatly increased the demand for APIs. Therefore, the growth of the global pharmaceutical market has largely affected the development of the entire intermediates and API industry.
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