According to the relevant announcement of the State Food and Drug Administration (CFDA), enterprises that have passed certification can basically guarantee the market demand for sterile medicine in China. The new GMP requirements for injections have increased. It is indeed a relatively big challenge for companies that are not fully productive, have poor production equipment, and have insufficient strength.

On February 18, the CFDA announced the latest phase of the GMP certification for pharmaceuticals. 65 pharmaceutical manufacturing companies such as Shandong New Times Pharmaceutical Co., Ltd. passed GMP on-site inspections, and the number of GMP certified companies in China increased to 861.

At present, some domestic companies are busy with large-scale mergers and acquisitions, while another part of the company hastened to dispose of non-core assets and light vehicles to hurry.

For example, in recent years, Dazhong Pharmaceutical Co., Ltd. has sneezed around the globe and its GPIC Group, which has always focused on internal reforms, has finally expressed its expansion ambitions. It said that it will use the opportunity for the expiration of the new GMP certification to acquire 20 to 30 companies in 3 to 4 years. Pharmaceutical companies, with injections and biopharmaceuticals as their main targets, will concentrate their efforts on production approvals and mergers and acquisitions of industrial companies. Currently, they are negotiating with more than a dozen companies; Yabao Pharmaceuticals has announced that it will not pass new GMP standards. Company Yabao North Zhongda Company sells.

According to Wang Weibing, an expert member of the GMP design group and deputy general manager of Zhejiang Hisun Pharmaceutical, the company’s acquisition is mainly related to the company's development strategy. At present, it still targets product approvals, but the original production is not full, transformation and new investment and production. It is of little significance for products that are out of proportion to one another to continue to reinvest huge sums of money in a relatively overcapacity environment, or if the product area is not a product of strategic development of the company, it will take this opportunity to make adjustments.

However, Wang Weibing also pointed out that the status quo of relatively overcapacity will not change significantly due to the implementation of new GMP, and competition in the industry will remain fierce.

“A more effective measure is the liberalization of the licensing policy for marketing licenses and production licenses. This will more effectively stimulate the industry to revitalize assets and accelerate the phase-out of the industry. This is a strong appeal for the industry and hopes that the “Drug Administration Law” is being amended. There will be a breakthrough in the listing licensor system,” Wang Weibing said.

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