The United States raises tariffs on Chinese products | How will local pharmaceutical companies be affected?

In March of 2017, the United States threatened to launch a '301 investigation' in China, and unilateral trade protectionism has risen. This has provided uncertainties for changes in international trade patterns.

Today, on March 22, local time, US President Trump signed the president’s memorandum. According to the results of the '301 investigation', it will impose large-scale tariffs on imports from China and limit Chinese companies’ investment in the United States. Trump Before the White House signing, the media said that the scale of Chinese commodities involved in taxation could reach 60 billion US dollars. According to the measures announced by Trump, U.S. Treasury Secretary Mukuchin will formulate new investment restrictions to limit China’s investment in purchasing US The company's technology. At the same time, Trump assigned US Trade Representative Lite Shizzle to announce a list of products to be raised tariffs within 15 days.

The White House predicts that the new tariffs may affect about 1300 goods imported from China. At the same time, the US Treasury Department will also come up with a plan for Chinese investment in the US technology sector within 60 days. Sources have revealed that the industries that increase tariffs include Automation Tools and Robots, Aerospace and Navigation Equipment, New Energy Vehicles, Railways, Agriculture and Biology medicine China also reacted quickly to this, according to the website of the Ministry of Commerce. On March 23, the Ministry of Commerce issued a list of discontinuation concessions for US imports of steel and aluminum products 232 measures, and solicited opinions from the public, intending to import from the United States. Some products are subject to tariffs to balance the losses caused by the United States adding tariffs to imported steel and aluminum products to China’s interests.

(Source: Sina Finance)

An industry expert who returned from overseas said that at present, only taxes on imported goods or the removal of tariff preferences are indeed related to medicine and medical instruments Products, but from the point of view of investment and acquisition, should have little effect, but both China and the United States will be affected in all aspects.

Talent Exchanges, technology transfer, investment in high-tech industries, etc. will all be limited. For example, some sensitive technologies will be restricted and some Chinese scientists and Chinese cooperation will be monitored. However, this is mainly in military-related fields, including chips and materials. The computer industry and so on, for the pharmaceutical industry, the sensitivity of the current cooperation in the field of biomedicine is not high, so the problem is not great.

But domestic enterprise More exports are bound to be affected. At the same time, the possibility of Chinese companies acquiring large U.S. pharmaceutical companies will also be reduced. 'At present, if you want to strengthen overseas cooperation, you may only go to the United States to invest in early projects and mergers and acquisitions of small businesses. Overseas companies are headquartered in the United States, and the production base is located in the local area.

In fact, under the background of a new round of economic restructuring and supply-side reforms, the pace of transformation and upgrading of China's pharmaceutical industry has further accelerated, and companies have gradually climbed from raw material medicines, low-end agents to high-end agents, improved new drugs and innovative drugs. More and more companies are also looking to invest in the international market, deepen the process of internationalization of Chinese preparations by increasing certification and overseas cooperation.

The large scale of the U.S. market has become the preferred destination for many Chinese companies to explore the international market. Some companies with strong cost control capabilities and good software and hardware infrastructure and financial strength have started to register new drugs and generic drugs in the United States.

China's western medicine products were exported to 200 countries and regions in the first half of the year, of which exports to the top ten destination countries accounted for as much as 57.5%.

In the first half of 2017, the United States overtook India and regained the championship of the country's western medicine export destination. In the first half of the year, China exported 2.24 billion US dollars worth of western medicine products, which represented a 13.77% year-on-year increase.

Among them, APIs accounted for 82% of the total export volume. Exports of APIs, amino acids, hormones, antipyretic analgesics, vitamins, central nervous system, etc. all achieved strong growth, but LIN Ke Exports of mycotoxins, tetracyclines, penicillins, etc. have shown a certain degree of decline.

In the export of western medicine preparations, Chinese enterprises failed to continue the rapid growth momentum of the past year. Exports only achieved a year-on-year increase of 3.51%, but the average export price soared by 55%, which is worthy of attention, indicating that China's exports of Western medicine products to the United States Higher value added.

Looking at the situation of foreign trade for the entire year of 2017, a total of 73 kinds of western medicines were exported to China. The export volume of hormones, penicillins, and cephalosporins increased by 25.4%, 7.8%, and 14.6%, respectively, and the prices rose by 7.37% year-on-year, respectively. 2.83 %and 1%.

Among them, China’s exports of US-Western medicines were US$310 million, a year-on-year increase of 5.4%, and accounted for 9% of China’s total exports of Western medicine preparations. Local companies have become the main driving force for US exports. Of the top 10 exports to the United States, 9 For domestic companies in China, Huahai, Nantong Lianya, Renfu, Qilu, and Shijiao have all increased their exports by more than 20%. 9 Qilu Pharmaceuticals exports to the United States, exports exceeded 8 million U.S. dollars, 8 companies in 2017 The ANDA number was approved. The value of exports to the United States exceeded US$6 million, an increase of more than 90% year-on-year. In addition, Jiangsu Haosen, Beijing Secco, Shandong Xinhua, etc., although the export value is not large, there have been some breakthroughs in exports to the United States in 2017.

At the same time, Chinese companies have been granted 34 ANDA numbers in the United States, setting a record high. Whether it is Huahai Pharmaceutical, Renfu, and Haizheng’s pharmaceutical companies with international expertise, or the recent development of Hengrui, Shiyao, Qilu, etc. Fast-moving companies are scrambling to accumulate ANDA numbers when they enter the US market, and some companies that are dominated by the domestic market and emerging markets have begun to look to the US market, Huaren Pharmaceutical, Shiqiao Bio, Ruiyang Pharmaceutical, Step-by-step medicine also has a breakthrough, to achieve the first ANDA approved in the United States.

In addition, the number and scale of mergers and acquisitions transactions in China's pharmaceutical companies in the regulatory market continued to expand, and the pace of international resource deployment was accelerated. The Huahai Charlotte plant began normal operations in the first half of the year, effectively linking the company's research and production sales industry in the United States. The chain has effectively promoted the pace of the company's entry into the United States to control drug control business and government orders, and has also contributed to the continued rapid growth of its exports to the United States.

Affected by the continued decline in the prices of generic drugs in the United States, prices of some high-end generic drugs exported to the United States have shown a downward trend, except for a few clarithromycin and amlodipine. drug In addition, a series of high value-added preparations, including anti-cancer drugs, psychotropic drugs, and hypolipidemic agents, have all decreased in terms of average export prices in the United States. Intense competition and low prices, coupled with the listing of Chinese companies in the United States There are not many pharmaceutical products, negotiating power is limited, and the road to commercialization is long way to go.