Exports of Tetracycline Derivatives and Their Salts Doubled in 2011   

Chinese exports for tetracycline derivatives and their salts reached 25 710 tons in 2011, an increase of 109.31% from 2010. Export value jumped 76% YoY to US$331 million. However, export price registered a decline of 15.91%. Over the past years, tetracycline derivatives and their salts have been making up a main part of China's tetracycline active pharmaceutical ingredients exports, accounting for 93.78% in 2011.
   Customs data showed exports of tetracycline derivatives and their salts rose significantly in the second half of 2011, but the strong shipment was mainly underpinned by low prices. Exports volume rose in all the months but January in 2011. The export price, which has fallen since June, stood at US$12.86 per kg on average last year, down 15.91% YoY.
   There were 251 Chinese exporters for tetracycline derivatives and their salts last year, with the top 10 accounting for 66.36% of all exports in terms of value. These companies are mainly based in the provinces of Hebei, Jiangsu, Inner Mongolia, Fujian, and Henan, which accounted for 28.11%, 23.55%, 16.82%, 12.18% and 4.68% respectively in terms of export value. Of them, Henan province and Inner Mongolia region saw the biggest increases. The export volume from Henan was 50 times the level of 2010, because of sharply higher shipments by Kaifeng Pharmaceutical (Group) Co Ltd. The company, which obtained the Certificate of Suitability (COS) in 2007, passed an official on-site inspection by the EDQM (European Directorate for Quality Medicines) in 2011. This paves the way for the company to continue to sell its hydrochloride doxycycline products to the high-end market in the European Union, and helped the company realize fast export growth to the European market in 2011.
   China exported tetracycline derivatives and their salts to 99 countries and regions in 2011. By export value, the biggest markets were Europe, Asia, North America, Latin America, Africa and Oceania. Europe accounts for 22.08% in terms of export value and 34.47% in terms of export amount, both the largest by continent. This shows that its demand in the European market could further rise. The United States remains the largest country market for China's tetracycline derivatives and their salts exports. Though Chinese exports to the US quadrupled in 2011, the export price tumbled 44.25%, which squeezed profit margin.
   In 2011, the exports for tetracycline derivatives and their salts were largely affected by the fluctuation in prices, indicating that there are many restraints in the development of the bulk active pharmaceutical ingredients (API). At present, API leads in the domestic pharmaceutical industry. API made up nearly half of China's total medical and healthcare product exports in 2011. However, the export prices were usually low. In 2010, about 47% of China's API exports were below US$10 per kg on average. Chinese API manufacturers usually rely on capacity scale to save on costs and gain profits, rather than technology. This has resulted in oversupply in the industry. Companies could only improve their profitability and get on a sustainable development path via innovation and improving products' value added.
   In addition, many multinational pharmaceutical companies will see their patent on certain key drugs expire in 2012. This will create a good opportunity for generic pharmaceutical market. The development in generic medicines will sure trigger demand for API in China. Domestic API companies could develop unique products via innovation or just enter the generic pharmaceutical business directly.