Highly Potent API Market - A Global and Regional Analysis: Focus on Type, Type of Synthesis, Therapeutic Area, Type of Manufacturing, End User, and Country - Analysis and Forecast, 2023-2033

The global highly potent API market is projected to reach $84.20 billion by 2033 from $27.44 billion in 2023, growing at a CAGR of 11.86% during the forecast period 2023-2033. The key factors driving the growth of the global highly potent API market include increasing incidence of cancer leading to demand in the adoption of highly potent APIs, expanding therapeutic applications of highly potent API.

Market Introduction

The global highly potent API market consists of comprise innovative high-potency APIs and generic high-potency APIs used for therapeutic areas, which include oncology, immunology, hormonal disorders, infectious diseases, and others.

Impact Analysis:

The highly potent API market has made an impact in the following ways:

Advancements in Containment Technologies for Highly Potent APIs: Advancements in containment technologies are key enablers for the safe and sustainable development and production of HPAPIs. Addressing the challenges and seizing the opportunities will be crucial to harnessing the full potential of these potent compounds and shaping a safer, more efficient, and environmentally responsible future for the pharmaceutical industry.

Increasing Investment for Highly Potent API Manufacturing Units: The surge in investments for HPAPI manufacturing units is a highly promising trend with the potential to revolutionize healthcare. Addressing the challenges alongside capitalizing on the opportunities will be key to unlocking the full potential of these potent compounds and transforming patient outcomes across diverse therapeutic areas.

With the increasing demand for targeted therapies and personalized medicine, investments enable companies to align their portfolios with market needs. This strategic alignment can lead to the development of drugs with higher efficacy and fewer side effects.

Market Segmentation

Segmentation 1: by Type

• Innovative High-Potency APIs
• Generic High-Potency APIs

Innovative High-Potency APIs Segment to Lead the Highly Potent API Market (by Type)

The innovative high-potency APIs segment held the highest share in the global highly potent API market (by type) in 2022 and is anticipated to hold its dominance till the end of the forecast period.

Segmentation 2: by Therapeutic Area

• Oncology
• Immunology
• Hormonal Disorders
• Infectious Diseases
• Others

Oncology Segment to Lead the Highly Potent API Market (by Therapeutic Area)

The oncology segment held the highest share in the global highly potent API market (by therapeutic area) in 2022 and is anticipated to hold its dominance till the end of the forecast period.

Segmentation 3: by Type of Manufacturing

• In-House
• Outsourced

Outsourced Segment to Lead the Highly Potent API Market (by Type of Manufacturing)

The outsourced segment held the highest share in the global highly potent API market (by type of manufacturing) in 2022 and is anticipated to hold its dominance till the end of the forecast period.

Segmentation 4: by Type of Synthesis

• Synthetic
• Biological

Synthetic Segment to Lead the Highly Potent API Market (by Type of Synthesis)

The synthetic segment held the highest share in the global highly potent API market (by type of synthesis) in 2022 and is anticipated to hold its dominance till the end of the forecast period.

Segmentation 5: by End User

• Biopharmaceutical and Life Science Companies
• Contract Drug Manufacturing Organizations
• Research Institutions

Contract Drug Manufacturing Organizations Segment to Lead the Highly Potent API Market (by End User)

The contract drug manufacturing organizations segment held the highest share in the global highly potent API market (by end user) in 2022 and is anticipated to hold its dominance till the end of the forecast period.

Segmentation 6: by Region

• North America
• Europe
• Asia-Pacific
• Latin America
• Middle East and Africa

China dominated the Asia-Pacific highly potent API market in 2022. The country has a growing population with cancer, and hormonal disorder. Highly potent API offers effective and accessible result for these conditions.

The Chinese government recognizes the potential of highly potent API and is actively promoting its development and manufacturing.

Recent Developments in the Highly potent API Market

• In December 2022, Almac concluded the initial phase of its good manufacturing practice (GMP) active pharmaceutical ingredient (API) facility expansion as part of a multi-million-pound investment program.
• In October 2022, Asymchem Inc., a prominent global provider of contract development and manufacturing services, and AUM Biosciences (AUM), a global biotech company in the clinical stage, with a focus on the discovery, acquisition, and development of next-generation targeted oncology therapeutics, jointly declared the successful conclusion of their inaugural GMP production campaign for AUM601.
• In April 2022, Asymchem Inc. announced the construction of a new facility at its Dunhua production site in China. This facility is dedicated to the extensive implementation of continuous flow technology in manufacturing processes.
• In October 2023, Axplora's subsidiary Farmabios secured cGMP approval from AIFA for expanded HPAPI and steroid production capacity.
• In January 2022, Helsinn and Immedica established an exclusive partnership for the commercialization of cancer supportive care products in key European markets.
• In June 2022, Merck KGaA announced that its life science business sector has increased its production capacity for high-potent active pharmaceutical ingredients (HPAPI) twofold through the expansion of its facility in Verona, situated near Madison, Wisconsin, U.S.
• In January 2022, PCI Pharma announced a substantial investment in increased capacity and enhanced capabilities, further augmenting its globally renowned center of excellence dedicated to the manufacturing of highly potent products.
• In March 2022, Pfizer Inc. (Pfizer CentreOne) inaugurated a cutting-edge drug manufacturing facility in Freiburg, Germany, representing a $331 million investment.

Demand – Drivers, Challenges, and Opportunities

Market Demand Drivers:

Increasing Incidence of Cancer Leading to Demand in the Adoption of Highly Potent APIs: One of the primary drivers of HPAPI demand is the booming oncology landscape. As cancer rates continue to climb, the need for more effective and targeted therapies intensifies. HPAPIs play a crucial role in the development of antibody-drug conjugates (ADCs), a class of potent cancer drugs that deliver targeted payloads directly to tumor cells. HPAPIs, with their high potency and targeted action, offer a solution. They bind to specific molecules on cancer cells, minimizing harm to healthy cells and leading to higher efficacy and reduced side effects compared to traditional drugs.

Advancements in Drug Delivery Technologies: Advancements in drug delivery technologies for highly potent Active Pharmaceutical Ingredients (APIs) involve the development of innovative methods to deliver these powerful substances efficiently and safely within the human body. These technologies aim to enhance therapeutic efficacy, minimize side effects, and improve patient adherence to treatment. Examples of such advancements include targeted delivery systems, nanotechnology-based formulations, and novel encapsulation techniques. These innovations contribute to optimizing drug absorption, distribution, and release, thereby revolutionizing the treatment of various medical conditions with potent APIs.

Expanding Therapeutic Applications of Highly Potent API: The expanding therapeutic applications of HPAPIs are a highly promising trend with the potential to transform healthcare across diverse disease areas. Addressing the challenges and seizing the opportunities will be crucial to unlocking the full potential of these versatile compounds and improving patient outcomes for a wider range of medical conditions.

Market Restraints:

Regulatory Complexity for Highly Potent APIs’ Manufacturing: The production and use of highly potent active pharmaceutical ingredients (HPAPIs) present specific regulatory compliance challenges due to their potent nature. These challenges arise from concerns about worker safety, environmental impact, and potential risks to end users. Stringent regulatory requirements for HPAPIs can contribute to increased costs associated with development, manufacturing, and compliance.

High Development and Production Costs: The significant development and production costs of HPAPIs are a well-recognized hurdle on the path to unlocking their vast therapeutic potential. The shift toward smaller, more targeted HPAPI production leads to higher per-unit costs. Continuous manufacturing and process optimization are seen as potential means to improve efficiency and economies of scale.

Market Opportunities:

Growing Emphasis on Personalized Medicine: HPAPIs are playing a pivotal role in shaping the future of personalized medicine, but challenges remain. By fostering collaboration among researchers, pharmaceutical companies, regulators, and healthcare providers, can overcome these hurdles and unlock the full potential of HPAPIs. This will pave the way for a future where every patient receives treatment tailored to their unique needs, maximizing their chances for a healthy and fulfilling life.

Increasing Opportunities for Pharma Companies in Developing Markets: The opportunity for established companies entering emerging markets for HPAPI production offers a win-win scenario. It can benefit both the companies seeking cost advantages and access to new markets and the emerging countries aiming to develop their pharmaceutical industries and gain valuable expertise. However, careful consideration of potential challenges and ensuring equitable partnerships are crucial for sustainable and mutually beneficial outcomes.

How can this report add value to an organization?

Product/Innovation Strategy: The global highly potent API market has been extensively segmented based on various categories, such as type, therapeutic area, type of manufacturing, type of synthesis, end user, and region. This can help readers get a clear overview of which segments account for the largest share and which ones are well-positioned to grow in the coming years.

Growth/Marketing Strategy: Synergistic activities accounted for the maximum number of key developments, i.e., nearly 87.00% of the total developments in the global highly potent API market were between January 2021 and December 2023.

Competitive Strategy: The global highly potent API market has numerous established players with product and service portfolios. Key players in the global highly potent API market analysed and profiled in the study involve established players offering product and services of highly potent API.

Methodology

Key Considerations and Assumptions in Market Engineering and Validation

• Detailed secondary research was performed to ensure maximum coverage of manufacturers/suppliers operational in a country.
• Exact revenue information, up to a certain extent, was extracted for each company from secondary sources and databases. The revenues specific to the pr type, therapeutic area, type of manufacturing, type of synthesis, end user, and region were then estimated for each market player based on fact-based proxy indicators as well as primary inputs.
• The scope of this report has been carefully derived based on interactions with experts in different companies across the world. This report provides a market study of highly potent API.
• The market contribution of the highly potent API anticipated to be launched in the future has been calculated based on historical analysis. This analysis has been supported by proxy factors such as the innovation scale of the companies, the status of funding, collaborations, customer base, and patent scenario.
• The scope of availability of highly potent API in a particular region has been assessed based on a comprehensive analysis of companies’ prospects, regional end-user perception, and other factors impacting the launch of highly potent API in that region.
• The base year considered for the calculation of the market size is 2022. A historical year analysis has been done for the period FY2020-FY2021. The market size has been estimated for FY2022 and projected for the period FY2023-FY2033.
• Revenues of the companies have been referenced from their annual reports for FY2020- FY2022. For private companies, revenues have been estimated based on factors such as inputs obtained from primary research, funding history, product approval status, market collaborations, and operational history.
• Regional distribution of the market revenue has been estimated based on the companies in each region and the adoption rate of highly potent API. All the numbers have been adjusted to a single digit after the decimal for better presentation in the report. However, the real figures have been utilized for compound annual growth rate (CAGR) estimation. The CAGR has been calculated for the period 2023-2033.
• The market has been mapped based on the available highly potent API. All the key companies with significant offerings in this field have been considered and profiled in this report.
• Market strategies and developments of key players have been considered for the calculation of the potential of the market in the forecast period.

Primary Research

The primary sources involve industry experts in the highly potent API market, including the market players offering highly potent API solutions. Resources such as CXOs, vice presidents, product managers, directors, territory managers, and business development have been interviewed to obtain and verify both qualitative and quantitative aspects of this research study.

The key data points taken from the primary sources include:

• Validation and triangulation of all the numbers and graphs
• Validation of the report’s segmentation and key qualitative findings for highly potent API
• Understanding the competitive landscape and business model
• Current and proposed production values of a product by market players
• Validation of the numbers of the different segments of the market in focus
• Percentage split of individual markets for regional analysis

Secondary Research

The key data points taken from the secondary sources include:

• Segmentation and percentage share estimates
• Company and country understanding, and data for market value estimation.
• Key industry/market trends
• Developments among top players
• Qualitative insights into various aspects of the market, key trends, and emerging areas of innovation
• Quantitative data for mathematical and statistical calculations

Key Market Players and Competition Synopsis

The companies that are profiled have been selected based on inputs gathered from primary experts and analysing company coverage, type portfolio, and market penetration.

Some prominent names in the global highly potent API market include:

• Almac Group
• Asymchem Inc.
• Axplora Group GmbH
• BASF Pharma Solutions
• CARBOGEN AMCIS
• CordenPharma International
• Curia Global, Inc.
• Dr. Reddy’s Laboratories Ltd.
• Lonza
• Merck KGaA
• PCI Pharma Services
• Pfizer CentreOne (Pfizer Inc.)
• Sterling Pharma Solutions

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