The Global Active Pharmaceutical Ingredients Market is projected to reach $285.34 billion by 2027, from a value of $175.39 billion in 2020, by registering a CAGR of 7.2% during the forecast period. Growing incidence of chronic diseases, increasing importance of generics, technological advancements in API manufacturing, increasing adoption of AI-based tools for drug discovery, raising adoption of organ-on-chip models in drug development, and rising uptake of biopharmaceuticals are the major factors propelling the growth of the market. However, huge manufacturing costs, unfavorable drug price control policies across various countries, and increasing penetration of counterfeit drugs are hampering market growth. Moreover, highly potent active pharmaceutical ingredients, emerging biosimilars market, launches of new drugs and biological products, and increasing investments in real-world evidence by pharmaceutical companies are creating ample opportunities across the globe.
Recent Developments
In April, 2020, Boehringer Ingelheim announced acquisition of Northern Biologics. By acquiring this company, Boehringer Ingelheim focuses on therapeutic antibodies for cancer, and strengthened its position in the stromal biology sector, which is an emerging area in immuno-oncology.
In August 2020, Pfizer Inc. announced a multi-year agreement with Gilead Sciences Inc. to manufacture and supply Gileads investigational antiviral remdesivir supporting efforts to scale up the supply of the investigational treatment for COVID-19.
In January 2020, Merck announced its strategic collaboration for the oncology platform with Taiho Pharmaceutical Co, Ltd. and Taiho Pharmaceutical Co, Ltd, to expand its focus on small molecule inhibitors for cancer research.
In January 2020, Novartis (Switzerland) acquired Aspens Japanese operations to strengthen its position in the global generics and off-patent medicines market. Novartis also entered into a manufacturing and supply agreement with Aspen.
Competitive Landscape
AbbVie Inc, AstraZeneca, Boehringer Ingelheim, Bristol-Myers Squibb, Cipla, Inc, Dr. Reddys Laboratories Ltd, Eli Lilly and Company, F. Hoffmann-La Roche Ltd, GlaxoSmithKline plc, Merck & Co., Inc, Mylan N.V, Novartis International AG, Pfizer, Inc, Sanofi, Sun Pharmaceutical Industries Ltd, and Teva Pharmaceutical Industries Ltd are some of the major players in the global Active Pharmaceutical Ingredients market.
