The global Active Pharmaceutical Ingredient (API) market is projected to reach USD 245.2 billion by 2024 from USD 182.2 billion in 2019, at a CAGR of 6.1% during the forecast period. The increasing incidence of chronic diseases, importance of generics, and the increasing uptake of biopharmaceuticals are some of the major factors driving the growth of the global API market. Moreover, prevalence of chronic diseases is resulting in a greater need for APIs for their effective treatment. Considering this, leading players in the market are focusing on aligning their API product portfolios towards developing therapies for chronic diseases which are on the rise. Players are also trying to expand their facilities for increasing their production capacities for APIs specific to the treatment of chronic diseases.
In 2019, the global Active Pharmaceutical Ingredient market was dominated by Pfizer, Inc., Novartis AG, Sanofi, Eli Lilly, GlaxoSmithKline, Johnson & Johnson, and Bristol-Myers Squibb. A few of the major strategies adopted by these players to compete in the market include product launches, partnerships, and agreements, which were undertaken between 2018 and May 2020. There were also a significant number of mergers & acquisitions during this period.
GlaxoSmithKline (UK) is one of the key players in the global API market. The Pharmaceuticals segment of the company has a broad portfolio of innovative and established medicines. GSK focuses on research &development activities, which gives the organization a competitive advantage. For instance, the company invested significantly in R&D activities in 2018 and 2019. Moreover, the R&D activities undertaken by the company aim at incorporating genetics and advanced technologies. The company is involved in the contract manufacturing of APIs in Ireland, the UK, Singapore, and Australia. The company primarily focuses on collaborations and partnerships to enhance its product offerings and maintain its position in the market.
Bristol-Myers Squibb (US) is a prominent player in the API market and holds expertise in pharmaceutical ingredients. The company has a broad product portfolio in biologics, which isan important factor inits future growth, especially in the biopharmaceuticals market. The company invested 6.41 billion, 4.94 billion, and 5.92 billion in R&D activities in the years 2017, 2016, and 2015, respectively. In order to maintain its leadership position in the market, the company focuses on growth strategies such as partnerships and expansions. The company is adopting new strategies and developing and expanding its product range.
It also focuses on collaborations, agreements, acquisitions, and approvals in order to meet the rising market demand. For instance, in November 2019,Bristol-Myers Squibb acquired Celgene, C a leading biopharma company. This acquisition helped BMS to further progress relating to the patent estate for REVLIMID, the US Food and Drug Administration (FDA) approval of INREBIC (fedratinib) for the treatment of certain forms of myelofibrosis, the US FDA approval of REBLOZYL (luspatercept-aamt) for the treatment of anaemia in certain adult patients with beta thalassemia, and regulatory filings of luspatercept and ozanimod in the US and Europe.
Eli Lilly (US) is one of the leading players in the global API market. The company invests significantlyin research &development in order to sustain its competitiveness. For instance, in 2017, the company invested USD 5.3 billion in R&D activities. Through Kinsale Manufacturing, it develops, manufactures, and supplies APIs. The company manufactures small molecule APIs along with APIs for biopharmaceutical medicines. Eli Lilly’s human pharmaceutical research focuses on cancer, diabetes, neurodegeneration, immunology, and pain.
In order to influence growth opportunities in the global API market, the company emphasizes on adopting organic as well as inorganic growth strategies. For example, in February 2020, Eli Lilly completedthe acquisition of Dermira, a leading biopharmaceutical company specializing in dermatology. This acquisitionenables the expansion of Lilly's portfolio of marketed dermatology medicines with the addition of QBREXZA (glycopyrronium), a medicated cloth approved by the FDA for the topical treatment of primary axillary hyperhidrosis (uncontrolled excessive underarm sweating).
