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API Contract Manufacturing Market:Insights by Size, Status and Forecast 2020
Posted: Apr 19, 2019
Active pharmaceutical ingredients (APIs) are also referred as ‘bulk pharmaceuticals’ and they are the base of the pharmaceutical industry. APIs are used in the manufacture of various pharmaceutical and drug products, intended to yield the desired pharmacological effect. APIs are produced through various processes such as chemical synthesis, fermentation process, isolation etc. Active pharmaceutical ingredient contract manufacturing market is one of the fastest growing markets of the pharmaceutical industry. Owing to the increasing number of contract manufacturing organizations (CMOs), the process of active pharmaceutical ingredient manufacturing is now being outsourced in order to reduce cost and increase product quality. Most of the pharmaceutical companies are increasingly concentrating on R&D and marketing activities, and therefore shifting their focus from non-core activities to the above core activities.
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The API contract manufacturing market is segmented as follows:
By state of matter:
- Solids
- Semi-solids
- Liquids
By API content:
- Organic substances, isolated from animal origin
- Organic substances, isolated from microorganisms
- Inorganic substances
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Major driving factors for the growth of the API contract manufacturing market are reduced investment costs due to the availability of cheap labor in emerging Asia economies, easier access to gain new technology in the market, and better utilization of resources in such regions. Other factors such as increasing need to focus on core activities, increasing need to fasten the drug development process and considerable reduction in time-to-market will further provide growth opportunities towards this market.
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According to Boehringer Ingelheim GmbH, countries such as India and China, which now supply over 40% of APIs used in the U.S., will double that figure to a whopping 80% within the next 10 years. Some of the major players operating in the API contract manufacturing market Teva Pharmaceuticals Industries Ltd, Boehringer Ingelhein GmbH, Piramal Pharma Solutions, Dr. Reddy's Laboratories Ltd, Sandoz-Lek-Biochemie, Novartis International AG, Ranbaxy Laboratories Ltd., Sun Pharmaceutical Industries Ltd., Merck & Co., Inc., AstraZeneca, GlaxoSmithKline Pharmaceuticals Ltd. and others.
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