Outsourcing of API business
Rising cases of infectious diseases and cancer will further drive demand for apis, with the National Cancer Institute estimating that about 1.736 million new cases of cancer were diagnosed in 2018.
In terms of the production of high-quality apis, strict norms and regulations are implemented in some countries, and the global API market is expected to gain momentum, boosting the management cost of self-produced apis. As a result, many pharmaceutical companies are focusing on outsourcing the production of apis.
The Indian Brand Equity Foundation (IBEF) said there is a high global demand for biologics as the number of chronic disease cases continues to rise. In emerging countries, imports of apis are increasing for the development of more innovative biopharmaceutical products. Pharmaceutical companies in various countries are focusing on research and development to develop the most advanced drugs. However, changes in drug pricing policies, especially in developing countries, are likely to impede the growth of the API market in the near future.
The COVID-19 outbreak has taken a huge toll on many companies. Most companies either cease operations or reduce their workforce to maintain effective social distancing measures.
Innovative drugs dominate
On the basis of synthesis methods, this market can be segmented into biological apis and synthetic apis. The synthetic API segment led the market share in 2018, thanks to cost-effective raw materials for the production of apis, which are cheaper than biological apis. With the continuous advancement of biologics production technology and the high demand for biopharmaceutical products for the treatment of a variety of diseases, the biopharmaceutical API segment is expected to grow significantly during the forecast period. In addition, the surging number of FDA approvals for biologic drugs such as recombinant proteins, blood products and vaccines will also drive the market growth.
Based on the type of API manufacturer, the API market can be segmented into commodity API and self-produced API. Due to the easy availability of raw materials and the capital intensive advantages of major market players in the development of high-end production facilities, self-produced and self-used apis held the largest market share in 2019. Commodity apis will be the fastest growing market segment during the forecast period, driven by factors such as the higher cost of in-house production of these molecular compounds and rising demand for biopharmaceutical products.
Based on the type of API, the API market can be divided into innovative API and general-purpose API. In 2019, innovative apis dominated the market due to favorable government laws and regulations, the establishment of R&D facilities, and increased funding for new drug development. Pharmaceutical companies have conducted extensive research in this area, and a number of innovative products in development will be brought to market in the next few years.
The general-purpose API segment is expected to achieve considerable growth during the forecast period. The expiration of patents on branded molecular drugs is a key factor driving the market demand for general-purpose apis. Due to high market acceptance of over-the-counter drugs and unmet clinical treatment needs in countries such as India and Brazil, the generic drug market is expected to grow appreciably in these countries.
Oncology is growing the fastest
Apis can be used in oncology, cardiology, central nervous system and neurology, plastic surgery, pulmonology, gastroenterology, nephrology, ophthalmology and endocrinology. Due to the rising incidence of target diseases across the globe, the cardiology drug segment dominated the market in 2019. According to the World Health Organization, cardiovascular disease kills about 17.9 million people worldwide each year, with 85% of these deaths caused by strokes and heart attacks.
Oncology is estimated to be the fastest growing segment during the forecast period. This segment is driven by factors such as the rising incidence of cancer as well as the increase in lifestyle-related diseases. There are already companies engaged in extensive research and development activities to develop drugs targeting novel biomarkers. Currently, there are a number of active ingredients on the market for cancer treatment, such as Roche’s bevacizumab, Trastuzumab and rituximab, and Novartis’ imatinib.
North America dominated the global API market in 2019, as the highly developed economy in this region, coupled with technological advances, rising incidence of cancer and other lifestyle-related diseases, prompted the market’s key players to actively engage in research and development activities, contributing to the market growth.
The Asia-Pacific region will see the fastest growth over the forecast period. Because labor is relatively cheap, many large companies choose to set up API production plants in developing countries such as China and India.
About Wisdom Drugs
Wisdom Drugs Co .,Ltd was founded in Sep. 2011 whose headquarter located in Changzhou Creative Industry Park, having a branch in India. The company’s R&D center is engaged in not only the process development of APIs, intermediates, poly-peptide compounds and heterocyclic compounds,but also the optimization and production. We are devoted to the synthesis customization and the technology transfer, enabling compounds to be scaled from laboratory to commercial to meet the requirements of different customers.
