Aureomycin’s Broad Prospects

By Zhang Lun

Production

China had two approval numbers for aureomycin hydrochloride API (active pharmaceutical ingredient) production as of the end of July 2014, and the licensed producers included Fujian Fukang Pharmaceutical Co., Ltd. and Gutian Fuxing Pharmaceutical Co., Ltd., according to information released by China Food and Drug Administration. At present, China’s capacity to make aureomycin hydrochloride API has reached more than 4 kt/a, and annual output exceeds 3 kt.
In the domestic pharmaceutical market, the varieties of aureomycin hydrochloride preparations are mainly drugs for external use, and the formulations include aureomycin hydrochloride eye ointment and aureomycin hydrochloride ointment, etc. As of the end of July 2014, China’s aureomycin hydrochloride preparation producers were Baiyunshan Hejigong Pharmaceutical Factory of Guangzhou Baiyunshan Pharmaceutical Co., Ltd., Nanjing Baijingyu Pharmaceutical Co., Ltd., Qingdao Growful Pharmaceutical Co., Ltd., Chongqing Kerui Pharmaceutical (Group) Co., Ltd., Cisen Pharmaceutical Co., Ltd., Tianjin Kingyork Group Co., Ltd., Xi'an Kanghua Pharmacy Co., Ltd., Shenyang Sinqi Pharmaceutical Co., Ltd., Kunming Zhenhua Pharmaceutical Factory Co., Ltd., Beijing Twinluck Pharmaceutical Co., Ltd., Zhejiang Shengji Pharmaceutical Co., Ltd., Shanghai General Pharmaceutical Co., Ltd., Shandong Health Pharmaceutical Co., Ltd., Henan Topfond Pharmaceutical Co., Ltd., etc.
Recently, the demand for aureomycin in feed additives at home and abroad has increased constantly. As a feed additive, the aureomycin produced in China has sold both here and abroad. At present, China’s capacity to make feed grade aureomycin exceeds 120 kt/a, and annual output is more than 100 kt. Domestic feed grade aureomycin producers with larger output mainly include Inner Mongolia Jinhe Biotechnology Co., Ltd., Fujian Pucheng Chia Tai Biochemistry Co., Ltd. and Henan Zhumadian Huazhong Chia Tai Co., Ltd.
China’s major aureomycin API producers are as follows:
1. Fujian Fukang Pharmaceutical Co., Ltd.
One of the top 100 pharmaceutical enterprises in China, Fujian Fukang Pharmaceutical Co., Ltd. invested in a new plant in Fuqing Jiangyin Development Zone in 2013 to produce medical grade aureomycin API. The plant also produces large amount of feed grade aureomycin (powdery and granular).
2. Inner Mongolia Jinhe Biotechnology Co., Ltd.
Inner Mongolia Jinhe Biotechnology Co., Ltd. has an aureomycin fermentation tonnage of 5 794 cubic meters, its capacity has reached more than 53 kt/a, the annual output is over 50 kt, and the products of the company are mostly for export. The leading products of the company are “Muxing” brand and “Jinhe” brand feed grade aureomycin.
3. Fujian Pucheng Chia Tai Biochemistry Co., Ltd.
Fujian Pucheng Chia Tai Biochemistry Co., Ltd. has an aureomycin fermentation volume of 3 300 cubic meters, its annual output of feed grade aureomycin with various formulation specifications has climbed from 20 kt to 30 kt, and its annual output of aureomycin hydrochloride is 1.5 kt. Major products of the company include “Shi Hao” brand aureomycin and aureomycin hydrochloride, and are mostly sold to the regions such as the United States, Europe, South America and Southeast Asia.
4. Henan Zhumadian Huazhong Chia Tai Co., Ltd.
Henan Zhumadian Huazhong Chia Tai Co., Ltd.’s capacity has reached 30 kt/a, and its annual output of feed grade aureomycin is 25 kt. The major product of the company is feed grade aureomycin. Both domestic and overseas markets are very important to the company, and the product has been exported to more than 20 countries and regions like Europe and North America.

Market

For a long time, the sales of aureomycin hydrochloride formulation products in the pharmaceutical market has increased stably. In particular, the annual sales volume of aureomycin hydrochloride eye ointment in the domestic market is tens of billions of pieces.
The global demand for feed grade aureomycin is brisk, and annual consumption has climbed constantly, exceeding 120 kt. At present, China’s consumption of aureomycin in feed additives has reached around 40 kt.

Constant increase of exports

For a long time, China’s export volume of aureomycin has climbed constantly. In 2006, China exported more than 40 kt of feed grade aureomycin and over 1.5 kt of medical grade aureomycin hydrochloride, and the total export value exceeded US$100 million. At present, China’s export volume of feed grade aureomycin has reached more than 75 kt. In 2013, China’s export value of feed grade aureomycin reached US$195 million, up 4.24% year-on-year. China’s major export enterprises are Inner Mongolia Jinhe Biotechnology Co., Ltd., Fujian Fukang Pharmaceutical Co., Ltd., Fujian Pucheng Chia Tai Biochemistry Co., Ltd. and Henan Zhumadian Huazhong Chia Tai Co., Ltd.

Prospects

The constant growth of domestic and international demand will of course promote growth of aureomycin consumption. According to an estimate of domestic feed output, producing one ton of feed consumes 500g of aureomycin with a content of 15%.  Therefore, the demand for aureomycin in the domestic market will increase by around 10 kt annually. It is expected that by 2018, China’s demand for feed grade aureomycin will reach 60-80 kt.
Around the world, feed grade aureomycin features safety and high efficiency, and it is a variety of pharmaceutical feed additives with larger consumption. Although new drug feed additives have been constantly developed, their cost is much higher than that of feed grade aureomycin. With the growth of population in the world as well as people’s increasing requirements on the quality of meat and eggs, the demand for feed grade aureomycin will increase constantly. It is expected that by 2018, the global demand for feed grade aureomycin will reach 200 kt.
At present, more than 90% of aureomycin in the world is produced in China, the global demand for aureomycin will increase gradually, and China’s production and export of aureomycin will still climb.