The Strategy for the Active Pharmaceutical Ingredients Market Amidst COVID-19 Challenges

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The growth of the active pharmaceuticals market is mainly driven by the expansion of the oncology pharmaceutical sector and continuous investment in technologies and the manufacturing capacity.

Originally Published on: SpendEdge |Active Pharmaceutical Ingredients Market: Assessing Suppliers During COVID-19 


The growth of the active pharmaceutical market is driven by the expanding oncology pharmaceutical sector and continuous investments in technology and manufacturing capacity. However, concerns have emerged, particularly with a significant number of manufacturers located in regions affected by the COVID-19 outbreak.

Impact of COVID-19 on the Active Pharmaceutical Ingredients Market:

The anticipated impact of the COVID-19 outbreak on the active pharmaceutical ingredients market is substantial, given that many manufacturers are situated within Chinese provinces that were epicenters for the virus. These manufacturers play a crucial role in producing vital drugs and other active pharmaceutical ingredients.

Challenges in Supplier Evaluation During the Pandemic:

The active pharmaceutical ingredients market is characterized by a highly fragmented landscape, with various industry players adopting different approaches to develop these ingredients. This diversity makes it challenging for companies to effectively evaluate their sourcing processes and suppliers.

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Ways to Evaluate Suppliers in a Dynamic Active Pharmaceuticals Ingredients Market:

In-house vs. Outsourcing:

  • Outsourcing Dynamics: Outsourcing manufacturing can reduce costs but may increase lead times during the global crisis.
  • In-house Considerations: In-house production involves significant resource investment, risks, and increased product complexities.
  • Choosing CMOs: Selecting a Contract Manufacturing Organization (CMO) requires careful consideration of their ability to deliver specific pharmaceutical ingredients at the correct scale.

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Identify Innovators:

  • Market Situation Focus: Companies should focus on CMOs actively developing innovative active pharmaceutical ingredients.
  • Key Criteria: Look for CMOs prioritizing worker safety, preventing cross-contamination, and investing in improving ingredients composition and manufacturing methods.
  • Proven Innovation Record: Seek CMOs with a proven track record of successful commercial production in the active pharmaceutical ingredients market.

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Lowering Production Scales:

  • Kilo-scale Production: Producing active pharmaceutical ingredients at a kilo scale can be advantageous for CMOs and outsourcing pharmaceutical companies.
  • Contamination Prevention: Smaller batches are less likely to be contaminated, reducing the risk for CMOs.
  • Risk Mitigation: Smaller-scale CMOs can effectively reduce lead times and minimize costs, providing a solution during the crisis.

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