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Profit of pharmaceutical intermediate suppliers

Based on the information related to pharmaceutical intermediate suppliers in the reference content, the following is an analysis of the profitability situation in this field:

1. The overall profit differentiation of the industry is obvious

The intermediate business of Prolo Pharmaceutical (belonging to the raw material and intermediate sector) saw a year-on-year decrease of 20.08% in revenue and a 3.1 percentage point decline in gross profit margin to 13.52% in the first quarter of 2025, mainly due to weak domestic demand for antibiotics and increased competition caused by overcapacity. The company plans to improve profitability by expanding overseas markets, optimizing production processes, and deploying synthetic biology technologies. ‌

Haoyuan Pharmaceutical has performed outstandingly, with a year-on-year increase of 6.19% to 47.97% in gross profit margin and a 29.78% increase in net profit margin in 2024. Its profitability has significantly increased, which may be related to the optimization of the structure of high value-added intermediate products. ‌

2. Opportunities in high growth niche areas

Duorui Pharmaceutical's intermediate business revenue surged by 927.66% year-on-year (but from a relatively low base), reflecting the potential of emerging intermediate businesses under the vertical integration strategy, especially in the field of peptide drug intermediates. This field has long-term profit potential due to the expansion of the global peptide drug market, but high initial production costs may suppress profit margins in the short term. ‌

3. Key driving factors for profitability

Technological barriers and globalization layout: For example, the CDMO sector of Prolo Pharmaceutical (including high value-added intermediates) achieved a gross profit margin of 40.4% (+3.3 percentage points) due to the upgrading of the technical team and the expansion of overseas customers

1. The high gross profit margin of Haoyuan Pharmaceutical also confirms the importance of technological advantages

2.

Policy and centralized procurement impact: After entering centralized procurement, the price of core products of Duorui Pharmaceutical is under pressure, but profit fluctuations can be hedged by expanding market share

3. Remind intermediate suppliers to pay attention to the bidding situation of downstream formulation customers for centralized procurement.

4. Risk Warning

API intermediates: The case of Prolo Pharmaceutical shows that traditional antibiotic intermediates are facing the risk of price wars.

Emerging fields: Peptide and other characteristic intermediates require continuous research and development investment and capacity ramp up, which may drag down profits in the short term.

Conclusion: The profitability of pharmaceutical intermediate suppliers shows structural differentiation, with significant profit potential in high value-added areas such as peptides and CDMO, but requires technological investment and global capabilities; Traditional bulk intermediates are constrained by overcapacity and price reductions in centralized procurement. Suggest paying attention to enterprise technology layout, cost control, and changes in downstream demand. ‌