With growth in spending on healthcare across the globe to reduce the burden of diseases, Active Pharmaceutical Ingredient (API) market is rapidly accelerating. The increased focus of Government of various countries and other International and regulatory bodies on affordable healthcare has led to a surge in this market space, in turn driving the market growth. Patent expiration, regional penetration and increasing age of the population are some of the other factors that drive this market. The API manufacturing services marketspace is also changing to meet the strict auditing and regulation expectation of regulatory authorities of various countries.
With the on-set of COVID, pharmaceutical companies working on various drugs cannot discount the importance of API’s source. To have a smooth supply chain, many big pharma companies are on-shoring their API production. However, having an in house facility for API manufacturing capabilities cannot be a permanent solution for all. For emerging Biotech Innovators this can be a very cost intensive process. Adhering to the guidelines stated by government bodies for the manufacturing of API and formulation can also be difficult task. Hence, such pharmaceutical companies are opting rapidly for API manufacturing services offered by Contract Development and Manufacturing Organisations (CDMOs). CDMOs that can offer seamless integration of API and Formulation manufacturing are highly sought-after. With the advancement in specialized drugs sector such HPAPI manufacturing, the demand for contract manufacturing has increased rapidly. The ability of contract manufacturing companies to offer integrated services is another important benefit, which is rapidly increasing in demand. CDMOs are consolidating to become integrated service providers by expanding their offerings and building their organization’s capacity. An integrated Contract Development and Manufacturing Organization (CDMO) increases value for its customer by offering a wide range of capabilities across a product life cycle and seamlessly blending them together. Additionally, integration of project present the advantage of having one point-of-contact overseeing the entire length of project. This decreases the hassle for the pharma companies to coordinate it at multiple ends.
