Tightened Environmental Protection, Accelerated The Consolidation Of API Industry!

- May 22, 2018-

Since 2017, the environmental protection department has stepped up efforts to supervise the Beijing-Tianjin-Hebei region and its surrounding areas, and Shandong and Hebei provinces, which are the origins of raw material medicines, have also been listed as key inspection targets. Recently, China Securities Journal reporters have found that the upgrading of the environmental protection situation has had a huge impact on the API industry. The above two provinces have concentrated on the majority of API companies that have market power and pricing power, along with the implementation of the production cuts and production restrictions policy. The drug set off a new wave of price increases and the prices of many varieties have started to increase. When environmental protection forces companies to eliminate backward production capacity or carry out large-scale relocations, due to the huge cost of relocation and long construction period. This process will rewrite the market competition and accelerate industry consolidation.

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