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Sterile Injectables: Opportunities Galore for Generics Manufacturers

04-23-2018 05:04 PM CET | Health & Medicine

Press release from: Pharmaceutical

Sterile Injectables: Opportunities Galore for Generics

Increasing use of biologics in healthcare industry, with the gaining prominence, the emergence of antibody-drug conjugates (ADCs) and monoclonal antibodies (MA) into the drug development and clinical pipeline, has spurred growth of the sterile injectable market worldwide. According to Piramal, the development and manufacturing of sterile injectables is highly complex and capital intensive. The operative cost for injectable is high as almost all injectables in present pharma market are toxic and infectious in natural, consequently, requiring a higher level of quality and significant care needs to be taken in order to ensure safe manufacture, packaging, storage, and distribution.

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Furthermore, strict regulations by Food and Drugs Administration on manufacturing facilities and equipment dissuades pharma players and potential new entrants from venturing into this lucrative sterile injectables market. Many sterile manufacturing facilities have closed down in the U.S. and many parts worldwide due to the alliance of in-house manufacturing capacities, which have led to an acute shortage of sterile injectables, adversely affecting the sterile injectables market. Earlier, there were individual companies developing injectables have now merged and acquired similar product profile companies in order to make up for operational cost required to develop the injectable. This in turn has adversely affected the sterile injectable market, leading to dearth of drugs.

The global sterile injectable market was valued at US$ 299.7 billion in 2015 and is expected to witness a CAGR of 6.9% during the forecast period (2016 – 2024).

Contract Manufacturing Firms to gain importance in Sterile Injectables Market

Sterile injectables manufacturing requires major capital investment for the equipment and the production process. Many pharmaceutical companies due to lack of funding and investors are approaching contract manufacturing firms in the U.S. and Europe. Lonza, one of the top contract manufacturer of biologics and ADC, in Europe, have ample opportunity to be the top contract manufacturing firm globally in terms of revenue. Germany-based pharma company, Fresenius Kabi, plans to invest around US$ 250 million over the following decade to expand the company’s Melrose Park site, where it manufactures generic, sterile injectable pharmaceuticals.

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Sterile Injectables Market Scenario: Indian companies are increasingly focusing on developing complex generics:

Some of the prominent pharma companies based in India have strived hard to achieve success by attaining approval for various novel biologics processes. The manufacturing facilities for development of biologics are GMP certified. There are many complex injectable drugs such as lyophilized products, high potency active pharmaceutical ingredients, long-acting suspensions, and liposomes which necessitate multifaceted manufacturing capabilities. For injectables, new drug, including drug delivery systems such as self-injection devices such as auto and pen injectors that improve patient compliance and enable differentiation is a strategy employed by various market players. Dr. Reddy’s has marked up its multifaceted injectables business since past 5 years to US$ 280 million in 2015, which is almost equal to 25% of its market value from North America. In order to enhance its geographical presence and venture into the injectables product segment, the company acquired a Netherland-based injectables manufacturer, to expand its injectables product portfolio. Lupin Limited acquired Naomi BV in 2014. Naomi BV has an injectable drug in the development pipeline and approximately total number of 38 products in the development pipeline targeting branded and generic injectables market.

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