Drug Consumption Skyrockets, Active Pharmaceutical Ingredients Production Rate Follows

Active ingredients are the biologically active portion of drugs. APIs are therefore the bulk active that are used in medicine. It is possible for one medication to contain more than one form of active ingredient. In pharmaceuticals, APIs are the drugs themselves, whether or not they are mixed with excipients or inactive ingredients. The excipient is usually the majority substance that a tablet is made of, or the liquid in which the API can be suspended. Quality APIs are essential for the manufacture of effective and safe medicines. However, not all pharmaceutical companies possess in-house API manufacturing capabilities. Furthermore, a single company cannot produce all the APIs required for their formulation offerings. This makes for an interesting market scenario on the global scale.

The global active pharmaceutical ingredients market is expected to expand at a highly optimistic CAGR of 6.3% between 2015 and 2023. The market was evaluated at US134.7 bn in 2015 and is likely to reach US$219.60 bn by the end of 2023, thanks to the several factors that are pushing for their demand.

How will Healthcare IT Interact with the Global API Market?

Currently, the surging demand for pharmaceutical products around the world is the key factor propelling the global active pharmaceutical ingredients market. The nearly exponential rise in the demand for drugs is pressuring the pharmaceutical industry to reach record levels of production. The access to the healthcare industry in the emerging economies is further escalating the demand for several drug types. This pressure on demand can be managed through the help of innovations in healthcare IT. The use of electronic health records can allow for a more streamlined processing of medical diagnoses and treatments, thereby creating a more globally transparent chart for the demand for various types of drugs, prompting the pharmaceutical industry to alter its flow in this extremely dynamic market scenario.

What Impact do Generics Have on the Manufacture of APIs?

The unleashing of generic equivalents on the global pharmaceutical industry in light of expiring patents is expected to severely hinder the current pace of the global active pharmaceutical ingredients market. A large number of patented APIs that were manufactured by leading pharma companies so far, can now be mass produced by regional manufacturers who can sell their drugs for significantly lower costs. This inhibits the profits that big pharma can generate, thereby cutting down on their level of investment in research and development on newer drugs. This problem could effectively be solved by the introduction of newer APIs into the pipeline. Their approval could successfully help the pharmaceutical industry streamline its distribution chain. The promise of increased patented API manufacture can be positively seen through the approval of facilities installation across the world. The more recent approval by the USFDA on Dr. Reddy’s Mexican API manufacturing plant shows that.

Emerging economies are definitely showing themselves as promising regions for the growth of the global active pharmaceutical ingredients market. Over the coming years, the increase in demand for various types of drugs in this region is likely to benefit the market highly.


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