LONDON--(BUSINESS WIRE)--SpendEdge has been monitoring the global drug intermediates and APIs market and the market is poised to experience spend growth of more than USD 80 billion between 2019-2024 at a CAGR of over 6% during the forecast period. Request Free Sample Pages.
Read the 133-page research report with TOC and LOE on "The Global Drug Intermediates and APIs Market, Pricing Outlook in Geographies that include APAC, North America, South America, and MEA, and insights into best practices to optimize procurement spend.”
This spend growth is accredited to the exponentially rising demand for biosimilars. A majority of drug intermediates and APIs suppliers are leveraging cutting-edge testing measures, such as Raman spectroscopy and gas chromatography to reduce impurities in products and deliver quality products attuned to buyers' requirements. This is contributing to the spend momentum in the drug intermediates and APIs market to a significant extent. However, factors such as the proliferation of counterfeit drug products, difficulty to get regulatory approval to drug testing and marketing are expected to hinder spend growth in this market across regions during the forecast period.
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Insights into market price trends:
- The rise in clinical failure rates is resulting in severe financial losses of suppliers. They are expected to compensate for these losses by hiking the drug intermediates and APIs market price.
- High risks of contamination upon exposure to air, light, and moisture make it imperative to use specialized storage and packaging. This is acting as a significant accelerator of the OPEX of drug intermediates and suppliers. This rise in OPEX is being compensated by buyers in the form of excess procurement spend in this market.
What are the strategies that buyers must adopt to optimize procurement spend in this market?
Strategic partnerships with suppliers will play a vital role in unlocking avenues to save costs for buyers during the contract period. Insights into some of the strategies that buyers must follow while negotiating and during the contract period with suppliers are given below:
Obtaining supply assurance
It is critical for buyers to factor in the plant capacity, batch size of production of APIs and drug intermediates, and the existence of contingency measures, such as alternative sites to manufacture goods. Assessment of these factors will help buyers get a clear picture of suppliers’ production capacity and their ability to cater to buyers' demand in the long term, especially during high fluctuations in demand. This will help buyers to avoid additional costs during the contract period.
Select based on the number of patents
Buyers are advised to select suppliers based on the number of patents registered and new patents that are about to be filed during the contract tenure. The number of patents signifies the level of innovation and product development undertaken by suppliers. In addition, the increase in the number of patents filed by suppliers will create a scope for the procurement of additional products from the same supplier.
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Some of the key topics covered in this report are:
- Drug intermediates and APIs market spend segmentation by region
- Total cost of ownership analysis in the drug intermediates and APIs market
- Regional spend opportunity for drug intermediates and APIs suppliers
- Drug intermediates and APIs suppliers cost structure
- Drug intermediates and APIs pricing models analysis
- Drug intermediates and APIs procurement best practices
- Category management objectives
- Cost saving opportunities in the drug intermediates and APIs market
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