April 18, 2024

Rising drug prices are the focus of recent talks in the pharmaceutical industry

The price increase of pharmaceutical raw materials is the focus of the recent pharmaceutical industry. The author observed the changes in the 58th raw material drug association and the recent market of raw material medicine, and now I would like to talk about the following experiences:
First of all, the shortage of resources led to the general bullishness of pharmaceutical raw material prices. China is a country with a dearth of natural resources. With the rapid development of the economy, the supply or ownership of oil and non-ferrous metals has become increasingly tense, and the contradiction between resources and economic development continues to emerge. This is more prominent in the pharmaceutical raw material market. For example, the most obvious example of the product of upstream resource raw materials is lanthanum nitrate. In a short period of half a year, the price has increased from 80,000 yuan/ton to nearly 500,000 yuan/ton now, and even fairly ordinary oxidation occurs. Raw materials such as aluminum, potassium iodide, and magnesium stearate are also bullish.
The products made from grain as raw materials, such as traditional antibiotics, semi-synthetic penicillins, nutrients, and pharmaceutical excipients, have also increased in varying degrees. Such products account for a large proportion of the pharmaceutical raw material industry, but due to the large amount of food produced in ethanol, the price of food has risen sharply, leading to the rising prices of such products. Similarly, the increase in the prices of pharmaceutical raw materials for petroleum resources is mainly due to the intensification of resource shortages.
In recent years, China's pharmaceutical raw material pharmaceutical industry has developed rapidly. In a sense, it is obtained at the cost of the environment. Up to now, environmental management costs have been added to manufacturing costs. This will inevitably lead to a substantial increase in the production costs of some pharmaceutical raw materials and pharmaceutical products. The decrease in production will affect the normal market supply and will drive market prices higher.
Second, the market for generic pharmaceutical raw materials is promising. Aminopyrine, metamizole, chlorpheniramine maleate, acetylsalicylic acid, acetaminophen, and other generic drug substances are in short supply due to the increased demand for generic drug products in the entire drug market. . As the country’s increasing investment in medical services, especially the comprehensive promotion and implementation of new rural cooperative medical services, has driven the rapid growth of the total medical consumer market, this is a great opportunity for the entire pharmaceutical industry to accelerate development.
Third, three-dimensional marketing has been widely used in the market operations of pharmaceutical raw material drug production and operation enterprises. The conference sales were once the main method for pharmaceutical raw materials, but today, with the development of the three-dimensional development of media information, sales of pharmaceutical raw materials have also entered a three-dimensional era. For example, at the 58th session of the API Conference, the focus of exhibitors was not to promote products, but to display their own image and promote their brands. From this point of view, the marketing methods of pharmaceutical raw materials will continue to develop in the direction of multiple channels under the existing market conditions.
Fourth, the market pattern of prices of pharmaceutical raw materials will not be repeated frequently. With the improvement of the industry's development level, the sales methods of pharmaceutical raw material medicine production and management that rely on price to win the market have become a thing of the past. The competition among peer companies is not the battle of “you die”, so everyone is not fighting in the market. Instead, they regulate the market by reducing production. When the price of a product falls drastically due to an increase in the supply of goods, once the price falls below the cost of production, the production and operation enterprises will, invariably, adopt the methods of limiting production and production suspension to reduce the output in order to maintain the interests of the entire industry and avoid The negative effects of vicious competition and harm to the company.

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