Throughout the whole industry, there are six major features of pharmaceutical intermediates in China:
1.Most of China’s manufacturing enterprises are private businesses. These enterprises are flexible in operation and have small investment scales, which are basically between one million to twelve million yuan.
2.China's manufacturing enterprises are geographically concentrated and distributed mainly in the areas of Taizhou, Zhejiang Province, and Jintan, Jiangsu Province.
3.With an growing emphasis on environmental protection from the country, the pressure on manufacturers to build environmental protection facilities has increased.
4.Fast product updates. After three to five years on the market, a product’s profit rate is greatly reduced, which compels enterprises to constantly develop new products or continuously improve production processes so as to maintain a relatively high production profits.
5.As the production profit of pharmaceutical intermediates is higher than that of chemical products and the production process of the two is basically the same, more and more small chemical enterprises have joined the industry of pharmaceutical intermediates, resulting in a increasingly fierce disordered competition in the industry.
6.Compared with producing API, the profit rate of producing intermediates is low. Meanwhile, the production process of API and pharmaceutical intermediates is similar. Some enterprises, therefore, not only produce intermediates but also use their own advantages to start producing API now.