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High Potency Active Pharmaceutical Ingredient (HPAPI) Market to Become Worth US$25.11 bn by 2023

10-10-2019 03:36 PM CET | Health & Medicine

Press release from: Transparency Market Research

High Potency Active Pharmaceutical Ingredient (HPAPI) Market

Development of Targeted Therapeutic Drugs Drives Global HPAPI Market

The booming oncology research and rising cases of cancer, diabetes, and other cardiovascular diseases have created a sizeable demand for dedicated treatments, thereby driving the high potency active pharmaceutical ingredient (HPAPI) market. The HPAPI market stood at a valuation of US$2.64 bn in 2014. The cost containment strategies adopted by companies through outsourcing are favoring market growth. This has brought down the cost of drugs drastically, making them affordable to a larger audience.

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The positive result of this trend is seen on the increased focus of companies on drug development and commercialization. As a result of these favorable trends, the HPAPI market is projected to be worth US$25.11 bn by 2023. Between 2015 and 2023, the market is expected to expand at a CAGR of 8.3%.

A promising pipeline of targeted therapeutic drugs will also help the market progress in the coming years. These drugs have minimal side effects and impact targeted areas, thereby helping the patient to recover faster with no lingering after effects. These positive perceptions surrounding HPAPIs combined with the near-expiration dates of blockbuster drugs, which will offer several generic drug manufacturers a chance to offer affordable drugs, will further the market’s growth. Consistent research and development to mimic branded drugs will create alternative and cost-effective treatments for patients across the globe, thereby augmenting the growth rate of the market.

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Emerging Nations in Asia Pacific Becoming Hubs of Generic Drug Manufacturing, to Aid HPAPI Market Growth

Asia Pacific is the expected to be the most lucrative market for high potency active pharmaceutical ingredients due to the soaring contract manufacturing activities in the region. Analysts predict that China will surpass Japan’s current share of 40% in the Asia Pacific market by the end of 2025. This change will be a result of low labor costs in China, well-equipped manufacturing plants, and supportive foreign exchange policies.

India will also be an upcoming high potency active pharmaceutical ingredients market due to the growing concentration of pharmaceutical manufacturing activities in the country. In the forecast period, the country is expected to be the hub for generic drug manufacturing. The growing investments by key players in India are also anticipated to boost this market in the near future. During the forecast period of 2015 to 2023, the Asia Pacific HPAPI market is expected to rise at a CAGR of 10.1%.

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Oncology Drugs Show Maximum Demand

The oncology drugs segment has been the leading segment of the global high potency active pharmaceutical ingredient market. This segment is expected to expand at CAGR of 8.3% during the forecast period. The introduction of innovative drugs is the primary growth driver for the oncology segment. Analysts predict that the patent expiry of blockbuster drugs such as Herceptin, Rituxan, and Humira will pave the way for generic drug manufacturers, thereby making these drugs affordable to a wide number of patients.

Some of the leading players operating in the global high potency active pharmaceutical ingredient market are WuXi AppTec, Sigma-Aldrich Co. LLC, Pfizer, Inc., Sandoz International GmbH, Novasep, Lonza Group, Dr. Reddy’s Laboratories, Cambrex Corporation, and Alkermes plc. The fragmented nature of this market will result in strategies to acquire and merge with regional players to gain the first-mover advantage.

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