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Guangxiang Pharmaceutical, part of Shijiazhuang Fourth Pharmaceutical Group: Delivers an “innovative combination punch” to seize the initiative in development.

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Media reports

Time：2022-04-20

Our flagship product, caffeine, and other related products have all seen robust growth in both production and sales. Seven new specialty pharmaceutical ingredients—including hexamethylenetetramine and ornidazole—are set to receive approval and launch soon. In the first quarter, our core business revenue achieved triple-digit growth... Since the beginning of this year, Hebei Guangxiang Pharmaceutical Co., Ltd., a subsidiary of Shijiazhuang Fourth Pharmaceutical Group, has delivered an impressive “combination punch,” ushering in a strong start to its innovative development.

Guangxiang Pharmaceutical, part of Shijiazhuang Fourth Pharmaceutical Group: Delivers an “innovative combination punch” to seize the initiative in development.

Its flagship product—caffeine and related items—has seen robust growth across the board in both production and sales. Seven new specialty pharmaceutical ingredients, including pentoxifylline and ornidazole, are poised to receive approval and launch soon. In the first quarter, the company’s core business revenue achieved triple-digit growth... Since the beginning of this year, Hebei Guangxiang Pharmaceutical Co., Ltd., a subsidiary of Shijiazhuang Fourth Pharmaceutical Group, has delivered a stunning “combination punch,” ushering in a strong start to its innovative development.

“By seizing opportunities and extending and strengthening our industrial chain, this strategic move has created new growth prospects for us. The strong performance in the first quarter was, to a certain extent, driven by our successful merger and acquisition. In early March, we acquired 100% equity of Cangzhou Lingang Youyi Chemical Co., Ltd.—a leading domestic producer of methylamine-based products—giving Guangxiang Pharmaceutical an even stronger boost and adding significant weight to our ability to compete in the market.” Speaking about this successful capital operation, Cui Yongbin, Chairman of Guangxiang Pharmaceutical, said excitedly that caffeine is highly sought after in the international market, and maintaining tight control over production costs is the key to continuously winning market share. Among the various components of caffeine production costs, monomethylamine accounts for a substantial portion. This acquisition of Youyi Chemical, located within the same industrial park, has not only enabled them to reap tangible benefits in reducing caffeine production costs but has also effectively addressed the challenges of integrating upstream and downstream links in the production chain and managing supply fluctuations. As a result, the industrial chain has become more complete and streamlined, giving the company greater influence and bargaining power in both domestic and international markets.

“Capital mergers and acquisitions are commendable, but technological advancements have also played an equally crucial role. This strategic move has firmly strengthened our core competitiveness,” said Cui Yongbin. Guangxiang Pharmaceutical serves as the origin for Shisi Pharmaceutical Group’s efforts to build a “bulk drug substance + finished dosage form” business model, accelerate industrial transformation, and implement measures to complete, extend, and strengthen the supply chain. The company aims to establish itself as a new highland for innovative, high-quality development of bulk drug substances in China, making it a cornerstone of the industry’s growth. In recent years, leveraging research initiatives such as the “listing-and-command” approach, Guangxiang Pharmaceutical has driven collaborative攻关 on key core technologies essential for bulk drug production. Through flexible talent recruitment and collaboration, with guidance and support from research teams at Tsinghua University and Tianjin University, numerous common and critical technical challenges affecting the yield and quality of its flagship product, caffeine, have been successfully addressed, doubling production capacity and achieving full-scale output. In the first quarter, the plant’s caffeine exports accounted for more than 30% of the country’s total caffeine exports. Meanwhile, the efficiency of new product development is also accelerating. Seven new products—including pentoxifylline, ornidazole, levornidazole, and pitavastatin calcium—are set to receive approval and enter the market soon, further highlighting the exemplary role of “specialized, refined, distinctive, and innovative” enterprises and “little giants.”

Stepping into the production workshop of Guangxiang Pharmaceutical, one is immediately struck by the presence of advanced, modern, and intelligent equipment everywhere. “Promoting and applying cutting-edge production equipment demonstrates our forward-looking vision and confidence in aligning with global industry trends. Since the beginning of this year, we have actively embraced digital information management, striving to build an intelligent API factory that meets internationally advanced standards. Now, by adopting new, intelligent crystal-form control technology, we can effortlessly regulate product particle size and bulk density, meeting the diverse needs of high-end customers in Europe and the U.S. This has significantly improved the flowability of products such as caffeine and metronidazole, earning our products widespread trust among customers.” Cui Yongbin said with great pride. By introducing and deeply integrating internationally advanced smart manufacturing equipment and core industrial software, they’ve achieved “one-click” control over the entire production process for a range of products—including caffeine, theophylline, aminophylline, metronidazole, and nifedipine—elevating their smart manufacturing scale and level to a domestic leading position. Currently, Guangxiang Pharmaceutical has successively obtained national GMP certification as well as international certifications such as BRC, FSSC22000, KOSHER, and HALAL, and has established strong cooperative relationships with major global caffeine suppliers.

“Next, we will seize the policy opportunities presented by the nation’s efforts to build a unified national market, continue to ramp up our investment in innovation, and accelerate the implementation of new-product industrialization projects. By delivering high-quality supply that creates and leads demand, we will proactively explore forward-looking and driving market opportunities, and steadily strengthen and enhance our appeal to both domestic and international markets,” said Cui Yongbin with great confidence.

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