Sourcing API – Beyond India and China | Life Sciences Connect
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Fifteen short years ago, India and China were emerging pharmaceutical markets content with supplying low-cost active pharmaceutical ingredients (APIs) to local customers. Today, these nations dominate the global bulk drug landscape, supplying regulated markets worldwide, with many Indian and Chinese companies now vertically-integrated and able to supply finished dose generics throughout the world. According to Thomson Reuters Newport, India and China combined have almost 2000 API manufacturers, a quarter of which are capable of supplying regulated markets.
As the size and scope of these pharmaceutical supply chains have grown, however, labor and energy costs have grown too, along with the scrutiny of foreign regulators. Companies in India and China will need to recoup rising production costs by raising consumer prices, perhaps incentivizing second wave emerging markets to turn to domestic API production to support growing pharmaceutical needs. Recent sourcing issues and import bans in India and China have also prompted some finished dose companies to seek new supply sources, creating opportunities for emerging market companies willing to manufacture to regulated market standards.
Several Asian countries outside of India and China are currently poised to capture a greater share of the global pharmaceutical market. These smaller Asian nations hope that domestic drug production can satisfy their increased needs for medicines to treat growing elderly populations and a greater incidence of lifestyle disease…
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