A few days ago, Shanghai Fosun Pharmaceutical (Group) Co.,Ltd. invested in Anhui Sunhere Pharmace Utical Excipients Co.,Ltd. (Abbreviation：Shenhe Pharmaceutical Auxiliary) by Fosun Pharmaceutical Industry Development Co.,Ltd., which is a branch of Shanghai Fosun Pharmaceutical (Group) Co.,Ltd. Shanghai Fosun Pharmaceutical (Group) Co.,Ltd. holds 20% of the stock right and becomes the second largest shareholder of Shenhe Pharmaceutical Auxiliary. This is the first time that Fosun Pharma invests in excipients industry.

Shenhe Pharmaceutical Auxiliary, formed in 2001, is a comparative big production enterprise in China which specializes in pharmaceutical excipients. At present, Shenhe Pharmaceutical Auxiliary, among the front rank of the industry, can produce over 18 kinds of pharmaceutical excipients and customers are over 1000. In the signing ceremony, Chen Qiyu, the president of FOSUN PHARMA said that Fosun Pharma focuses on the investment and development of pharmacy health industry field and hold the idea that the future of pharmaceutical excipients industry is going to be very bright. By investing in pharmaceutical excipients, which is a sub-industry, not only our pharmacy industry chain can be improved but also the production quality management and control of pharmacy member enterprise can be strengthened. This investment can expand the industry scale of Fosun Pharma gradually and promote industry competitiveness.

Pharmaceutical Excipients is a brand new sub-industry of pharmaceutical industry. It is also an indispensable and important carrier in pharmaceutical process，but it is developed comparatively later in our country and industrial agglomeration has not been formed. Our country has at least about thirty years gap with international pharmaceutical excipients enterprise and the pharmaceutical excipients products of high-tech products are mainly monopolized by European and American Pharma enterprises. Most of the pharmaceutical excipients enterprises of our country started in the early1990s and until the latter period were they aroused attention by all around, the technique and scale of enterprises in our country lag far behind advanced countries in Europe and America, etc. There are about 300 pharmaceutical excipients enterprises all around our country, among which only dozens specialize in pharmaceutical excipients and most of them are about RMB 50 million, not large in production scale, and only produce low-end products like starch and dextrin, etc. There is the “Small, Scattered and Random” situation of pharmaceutical excipients enterprises of our country, like that of pharmaceutical enterprises of our country and also the embarrassment situation that the pharmaceutical excipients enterprises have not been in the range of national “GDP” certification management. At present, pharmaceutical excipients enterprises have a low industrial concentration, only 50 enterprises that is comparatively large-scale and standard on the one hand and there is common lack of technical investment, lack of professional talents and weak research and development strength in pharmaceutical excipients enterprises on the other.

The comprehensive index of Shenhe Pharmaceutical Auxiliary has been among the best three in recent years stably. As the rapid development and structural upgrade of our country’s PHARMA industry, the outlook of matched pharmaceutical excipients market will be very broad and the specialists predict our country’s excipients industry will develop by the rate of no less than 8% in the future. In recent years, the production value of Shenhe Pharmaceutical Auxiliary has been increasing rapidly by the annual average rate of 20%-30% with rigid demand of the pharmacy market and the increase of government investment.

The chairman of Shenhe Pharmaceutical Auxiliary, Yin Zhenglong, thinks Fosun Pharma has powerful market network system, well-qualified research and development team, abundant capital advantage and capital market experience. Through the overall cooperation with Fosun Pharma, Shenhe Pharmaceutical Auxiliary will improve its core competitiveness in the industry and reach a new stage in quality control, market development, product research and development, personnel training and internationalization of the enterprise.

It is said that the investment of Fosun Pharma is mainly used for production scale expansion of Shenhe Pharmaceutical Auxiliary to solve the problem of short supply of the enterprise, industrial integration, resources allocation optimization, building new production bases of the enterprise and making the enterprise the bellwether of domestic excipients industry as soon as possible.