CMO raw drug prices are falling
Custom Synthesis ,The price of CMO APIs has continued to decline for many generic drugs. Antibiotics, for example, have been on the decline in market prices for CMO APIs in the past five or six years, despite rising sales of antibiotics.
According to statistics, the vast majority of antibiotic products 2000 years of prices are lower than 1995 . CMO the reason why the price of raw materials is declining is firstly due to the continuous improvement of technology, including the process technology of fine chemical products production and the continuous optimization of fermentation technology, the increasing of product yield, the lower the cost of unit products, and the continuous decrease of production cost. In addition to the impact of competitive factors, in particular the large-scale transfer of CMO APIs to developing countries, cheap labour and resources have led to further reductions in production costs.
The trend of declining prices of CMO raw materials determines the main means of competition and survival conditions with technical process level and scale production efficiency. Compared with other countries, our country CMO raw material medicine manufacturing has many advantages.
The first is the scale advantage, China is already the world’s second largest CMO raw material drug producer and exporter; the second is that China’s labor costs are relatively low; third, in recent years, China’s chemical CMO raw material drug production enterprises have a greater investment in technical transformation, production level has been improved, many production processes have reached even
Therefore, the price drop of CMO raw material medicine has played an important role in promoting the production advantage of CMO raw material medicine in China.http://www.haihengpharma.com/cmo-raw-drug-prices-are-falling/News