Active pharmaceutical ingredients (APIs) are bulk drug products that are used as raw materials for formulations. APIs of good quality 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.
The global active pharmaceutical ingredients market has been broadly segmented on the basis of the manufacturing process, type of active pharmaceutical ingredient, types of drugs, therapeutic areas and geography. This report analyzes the current scenario as well as the future market potential for active pharmaceutical ingredients market globally. This report comprises an elaborate executive summary, demonstrating a snapshot on market dynamics of various segments and sub-segments in a precise manner.
The report provides detailed qualitative analysis of the market dynamics that affect the growth of the global active pharmaceutical ingredients market. Factors responsible for driving and restraining the growth of the global active pharmaceutical ingredients market and future opportunities has been provided in the market overview section. This section of the report also provides comprehensive market comparative analysis and market attractiveness analysis for the global active pharmaceutical ingredients market by geography for the base year, Porter’s Five Forces analysis, and market share analysis by key players (%) for the base year, operating in the active pharmaceutical ingredients market. The report also encompasses detailed event impact analysis and value chain analysis for the global active pharmaceutical ingredients market.
The global active pharmaceutical ingredient market is categorized into captive manufacturing and contract manufacturing. Types of active pharmaceutical ingredients described in the global active pharmaceutical ingredient market include synthetic chemical API and biological API. Branded prescription drugs, generic prescription drugs, and over-the-counter drugs are various types of drugs covered in the global active pharmaceutical ingredients market. The global active pharmaceutical ingredients market encompasses various therapeutic areas such as cardiovascular disorders, oncology, metabolic disorders, neurological disorders, musculoskeletal disorders, NSAIDs and other therapeutic uses (such as infectious diseases).
Geographies discussed and analyzed in the global active pharmaceutical ingredients market include North America, Europe, Asia Pacific, and Rest of the World. In addition the report also comprises the precise and detailed country wise analysis for the global active pharmaceutical ingredients market such as North America (U.S. and Canada), Asia Pacific (China, Japan, India and Rest of Asia Pacific), and Europe (Germany, U.K. and Rest of Europe). The market size and forecast in terms of US$ Mn for each segment has been provided for the period from 2013 to 2023.
A list of recommendations have been provided for new entrants to help establish a strong presence and for existing market players to take strategic decisions and to increase their market shares in the global active pharmaceutical ingredient market. The report concludes with the profiles of major players in the active pharmaceutical ingredients market based on various attributes such as company overview, financial overview, business strategies, product portfolio, and recent developments. Major players profiled in this report include Allergan plc., BASF SE, Boehringer Ingelheim Group, Cambrex Corporation, Dr. Reddy’s Laboratories Ltd., Lonza Group, Mylan, Inc., Sandoz (Novartis AG), Pfizer, Inc., Teva Pharmaceutical Industries Ltd., and WuXi Apptec.
The global active pharmaceutical ingredients market is segmented as follows:
Global Active Pharmaceutical Ingredients Market, by Manufacturing Process, 2015-2020 (US$ Mn)
Global Active Pharmaceutical Ingredients Market, by API Type, 2015-2020 (US$ Mn)
Global Active Pharmaceutical Ingredients Market, by Drug Type, 2015-2020 (US$ Mn)
Global Active Pharmaceutical Ingredients Market, by Therapeutic Area, 2015-2020 (US$ Mn)
Global Active Pharmaceutical Ingredients Market, by Geography, 2015-2020 (US$ Mn)
The global Active Pharmaceutical Ingredient (API) market is valued at US$ 127 Bn in 2014 and it is projected to expand at a healthy CAGR during the forecast period.
By API types, the biological API market segment is expected to have the highest growth rate of around 8% during the forecast period of 2015-2020. The biological API segment is valued at about 30% of the global API market in 2014. It grew at an year on year growth rate of about 8% during 2015.
The global API market is transforming, as large pharmaceutical companies shift focus toward the biological APIs segment. Over 100 different biologic therapeutic agents have been approved for use in the U.S. and several more are awaiting marketing approval. The companies that used to rely solely on small molecules (synthetic chemical API) for their revenue are now considering new avenues to maintain the revenue stream due to generic influx. Protein-based therapeutics (peptides, proteins, enzymes and antibodies) have emerged as a major growth engine in the biological API market. Large pharmaceutical companies are scaling down their small molecule manufacturing facilities to focus on biologic drugs, thereby presenting greater opportunities for contract manufacturing companies. The overall cost of drug development program for biologics is less as compared to chemical APIs, primarily because of high success rates in the pipeline phase. This factor has attracted higher investments in the biologics and biosimilars market.
Apart from the currently marketed blockbuster biologics such as Humira and Herceptin, several other promising biologics such as mepolizumab (GSK), dupilumab (Sanofi/Regeron), alirocumab (Sanofi), evolocumab (Amgen), brodalumab (Amgen), ixekizumab (Eli Lilly) and secukinumab (Novartis) are expected to enter different geographical markets during the forecast period from 2015 to 2020. Presently, most of the biologics are manufactured in-house due to intellectual property concerns and quality issues. However, the manufacturing of biological APIs is a very complex and challenging process. Hence, innovator companies are outsourcing to contract manufacturing companies with biological production expertise.
Teva Pharmaceutical Industries Ltd dominated active pharmaceutical ingredients market in 2014. Major factors attributed to its dominance are broad product portfolio and high market penetration. Zhejiang Medicine Co., Ltd. and Zhejiang NHU Co., Ltd secured the second market position in 2015. North China Pharmaceutical Group Corp. (NCPC) and Northeast Pharmaceutical Group Co., Ltd. held the third position in 2015. Other players in the active pharmaceutical ingredients market include Dr.Reddy's Laboratories Limited, Sandoz (Novartis AG), Aurobindo Pharma Limited, Zhejiang Hisun Pharmaceutical Co., Ltd. and Zhejiang Huahai Pharmaceuticals Co., Ltd. and others