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What is the Reason for the Rise in API Prices?

Date: 2019-09-24
浏览次数: 270

In recent years, the price of raw materials has risen rapidly. Some people think that the important reason is industry monopoly, but why does monopoly suddenly increase? Let's take a look at the relevant policies in the past few years, such as the two vote system, business to value-added system, generic drug consistency evaluation, etc. The purpose of these policies is very good, and can be said to be the right medicine, but the so-called 'three poisons of medicine'. The side effects of these policies are gradually emerging, which leads to the increase of industry concentration and the possibility of industry monopoly. In addition, the soaring price of raw materials also has the cost pressure brought by environmental policies, human price manipulation and other factors.

1. Pressure brought by environmental protection

In recent years, the supervision of environmental protection is strict, and the API enterprises all over the country have been affected. And with the rising cost of environmental protection, the price of many raw materials is also rising.

Some people have said that this is a key factor in the soaring price of raw materials and drugs in the domestic market. Enterprises hope that, while local governments strengthen environmental protection supervision over raw material production, relevant environmental policies and standards should be more clear and detailed. If the level of environmental protection meets the standards, normal production should be allowed, rather than closed directly. Mobile, etc

2. Artificial manipulation

At present, the monopoly coverage of domestic APIs has been very wide, and it is no longer limited to small-scale varieties. Some API companies are currently raising prices because of 'environmental pressure', which is actually monopoly. The price manipulation of APIs has become the profit model of some small and medium-sized enterprises. In addition, the consistency evaluation policy of generic drugs will increase the concentration of the pharmaceutical industry and increase the possibility of industry monopoly.

3. How to solve it?

In order to curb the monopoly of APIs, the state has carried out many anti-monopoly investigations in recent years, severely punishing the rise of monopoly prices, but the effect is not much.

On the one hand, it takes time and energy for regulators to investigate monopoly companies, and it often takes a long time for cases to form a complete evidence chain. Moreover, the punishment is not enough and the illegal cost is too low to form deterrence. Antitrust investigation is only a breakthrough of some points, and can not form a surface effect

On the other hand, the company has many countermeasures against antitrust investigation. According to an insider, a company's products are usually in a monopoly position, with a certain market share. Some companies that monopolize the market will split the company into several or even dozens of companies to deal with the antitrust investigation. Enterprises, so the law has no monopoly.

To sum up, in order to solve the problem of soaring prices caused by the monopoly of APIs, we should not only start from the perspective of supervision and punishment, but also rely on the administrative force to do the 'technical work'. We should consider the normal needs of enterprises from the perspective of supply, and coordinate the resource allocation by market-oriented means, so as to solve the problem thoroughly.

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