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    The environmental protection pressure of raw material pharmaceutical companies has increased sharply
    Source:Chinese websites PublishDate:2019-03-11

    At the beginning of 2015, the new Environmental Protection Law was officially implemented. This is the sword of Damocles hanging over the head of the company that has polluted emissions. “Once the report is reported, enterprises will face the dual pressure of public opinion and the government.” Specific to the pharmaceutical industry, the environmental protection pressure of raw material drug manufacturers will increase sharply.
    For most API manufacturers, environmental pressure has always been a lingering problem. China is a major producer of chemical raw materials, especially the production capacity of fermented pharmaceutical products ranks first in the world. Now 70%-80% of the world's raw materials are produced in China. Judging from the current market environment, China's bulk drug production is in a state of overcapacity as a whole, and some API manufacturers have even slipped to the edge of losses, coupled with environmental pressures, which makes their operations even more difficult.


    According to the 2014 performance forecast issued by Peking University Pharmaceuticals, due to factors such as increased competition in the market for raw materials, the sales price of the company's original drugs fell sharply, and the sales price of the company's main raw materials decreased by about 30%. The environmental relocation projects were gradually transferred to the post-production operating expenses. The increase, in which the depreciation expense increased by about 42 million yuan, the project loan interest can not be capitalized, and the financial cost is increased by about 50 million. To sum up, the company's net profit attributable to shareholders of listed companies in 2014 is expected to be about 10 million yuan - 20 million yuan. According to the 2014 performance forecast released by Guangji Pharmaceutical, the company's leading products have weak external demand for riboflavin, weak domestic demand, and year-on-year decline in sales. In addition, raw materials and energy prices remain high, related sales expenses increase, and costs rise, leading to the company's leading The profit margin of the product has shrunk and the net profit has dropped significantly. It is estimated that the net profit attributable to shareholders of listed companies in 2014 will be a loss of 240 million yuan to 200 million yuan.
    How to develop in the future has become a difficult problem in the face of raw material drug manufacturers. Shi Lichen believes that the rising cost of environmental protection has prompted some companies to continue to transform. But in fact, the environmental protection law has little effect on the raw material drug companies, and may have an impact on the crude product manufacturers. As long as the pharmaceutical companies can meet environmental protection requirements, the company will have no pressure.