Business Club, May 5th, focused on the production and export volume of Takasago Industry Co., Ltd., Chungchi Chemical Industry Co., Ltd. and Toyo Soda Industrial Co., Ltd., which may cause shocks to the 4AA market supply and current prices.

The suspension of production at the Fukushima nuclear power plant in Japan caused serious shortage of power supply in the Tokyo metropolitan area and for the first time in nearly 30 years, the Japanese government imposed limited power supply on the Tokyo metropolitan area. This situation has resulted in the restriction of production or even the suspension of production in many industries in Japan, which also has a major impact on the fine chemical industry. Japan's three major 4AA producers - Takasago Industry Co., Ltd., Chungchi Chemical Industry Co., Ltd. and Toyo Soda Industrial Co. happen to be in the Tokyo metropolitan area. Industry insiders estimate that this large earthquake is likely to have a major impact on the output and exports of these three 4AA exporters. According to U.S. estimates, Japan's 4AA production will drop by 30% to 40%.

The Japanese company's 4AA production technology has long been a leader in the international market. Until the first decade of the 21st century, Japan has been holding the ears of the international 4AA market, and decided the 4AA market price trend. The total 4AA capacity of Takasago Industry Co., Ltd., Chungchi Chemical Industry Co., Ltd. and Toyo Soda Industrial Co., Ltd. reached 300 tons. This time, the reduction in production will cause the 4AA market supply and the current price to fluctuate.

At present, the domestic market has a better demand for Peenan preparations, and the industry is more optimistic about the prospects for the development of 4AA. Since 2008, the annual sales growth rate of domestic Peanan preparations has reached more than 50%. In 2009, the total sales of Peenan antibiotic products in the international market was 3 billion U.S. dollars. Last year, this figure has soared to nearly 5 billion U.S. dollars. At present, Peenan antibiotics account for 10% of the international antibiotic market. Due to the lack of powerful new antibiotic products in the near future, some experts predict that in the next few years, the sales of Peenan antibiotics will account for 15% of the international antibiotic market. In the international market, the demand for Pei Nan generic drugs will increase by at least 50% to 60%.

From the point of view of development trends, the sales of Peian-type preparations will certainly promote the growth of domestic sales of 4AA. Five years ago, the total sales of penicillin-type antibiotics in the international market was about 700 tons, and this figure is expected to rise to 1,000 tons or higher this year. With the large number of generic drugs Peenan APIs on the market, the sales price of its formulations will further decline, and it is expected to promote the rapid growth of production and sales of Peenan antibiotics. The increase in the sales of Peenan APIs will in turn boost sales of 4AA. In recent years, the 4AA orders from foreign merchants have soared, which in turn has caused a shortage of 4AA supply in the domestic market. It is expected that this year or next year, China's total output of 4AA is expected to reach a new level of 1,000 tons.

Due to the tight supply of 4AA in the international market, China's 4AA export products have always been able to maintain a high profit margin of 1,300 yuan/kg. Japan's 4AA export product prices are about 600 US dollars / kg, more than twice the price of our products. In contrast, domestic 4AA has a price advantage. Coupled with the fact that China's pharmaceutical companies have mastered the 4AA core production technology, they have the strength to compete with companies in developed countries such as Japan in the international market. Therefore, Japan's 4AA reduction is undoubtedly a big plus for China's 4AA producers and exporters.

From the perspective of development trends, the market demand for pharmaceutical raw materials for Peenan in the next few years is expected to reach 2,000 tons, and the demand for 4AA will eventually reach 800 to 900 tons.

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4AA Export Profile

In the past five years, China’s 4AA exports showed rapid growth: 3.141 tons in 2006, 21.671 tons in 2007, 62.50 tons in 2008, 80.79 tons in 2009, and 103 tons in 2010. In the first three months of this year, the export volume was 37.9 tons.

In previous years, China's main export market for 4AA was India and South Korea, and India, in particular, has accounted for about 60% of China's total exports of 4AA. At present, besides old customers such as India, South Korea, Singapore and China Taiwan in Asia, the domestically produced 4AA export destinations have also increased the Czech Republic, Dominica, France, Germany, and the United States.

Although nearly 20 companies in China are producing 4AA products, their production concentration is relatively high. The output of the 4 companies with the largest output accounts for more than 90% of the domestic 4AA total output. Other companies' 4AA production accounts for only less than 10% of the total output. Share. The four domestic pharmaceutical companies with the largest 4AA output were Zhejiang Haixiang Pharmaceutical, Zhejiang Huahai Pharmaceutical, Zhejiang Hisun Pharmaceutical and Shenzhen Haibin Pharmaceutical. Last year, Zhejiang Haixiang Pharmaceutical Company's 4AA exports accounted for about 97% of the total 4AA export volume in the country. 4AAs produced by other companies are mainly used by downstream pharmaceutical companies to produce a variety of Peenan antibiotics.

It is understood that Zhejiang Haixiang Pharmaceutical's 4AA production and sales ranks first in the country, its 4AA production capacity has reached 250 tons and will be further enhanced by the international 4AA market sales. Zhejiang Hisun Pharmaceutical's 4AA production capacity is approximately 120 tons, but its products are mainly used by the company to produce downstream Peian products with a small number of exports. Shenzhen Haibin Pharmaceutical's 4AA production capacity is more than 100 tons, and it is basically self-produced and sold with little export. Zhejiang Jiuzhou Pharmaceutical Co., Ltd. is a rising star in 4AA production. The company is located in Taizhou, Zhejiang Province and is a professional manufacturer of pharmaceutical intermediates. Its 4AA production capacity is estimated to be more than 100 tons. Another 4AA producer, Zhejiang Xindonggang Pharmaceuticals, also has a faster capacity growth.