Emerging Opportunities in Global Pharmaceutical Intermediates Market owing to Rise in Generic Drug Production

Global Pharmaceutical Intermediates Market 

The Global Pharmaceutical Intermediates Market is a diverse and fast growing industry. Pharmaceutical intermediates are the chemicals synthesized during the production of an active pharmaceutical ingredient (API). They are subjected to further chemical or biological transformations to generate the desired API. Widely used pharmaceutical intermediates include acetaminophen, ibuprofen, penicillin, amoxicillin, and other antibiotics.

The Global Pharmaceutical Intermediates Market is estimated to be valued at US$ 43.67 Bn in 2024 and is expected to exhibit a CAGR of 8.1% over the forecast period 2024 To 2031.

This is mainly attributed to rising generic drug production globally as generics have lower costs and help meet the growing healthcare needs of developing regions. Pharmaceutical companies are increasingly outsourcing intermediates production to specialized companies to benefit from their expertise and economies of scale.

Key Takeaways

Key players operating in the Global Pharmaceutical Intermediates are Evonik, Borregaard AS, Sudarshan Pharma, A.R. Life Science, Actylis, Saurav Chemicals Ltd., Lianhetech, Midas Pharma GmbH, Sanofi, BASF SE, Chiracon GmbH, Lonza, Chemcon Speciality Chemicals Limited., Modepro India Pvt. Ltd., Lifechem Pharma, Sarex, LANXESS.

The growing demand for generic drugs across major markets is driving the need for large-scale production of intermediates. According to estimates, the global generics drug market was valued at over US$ 300 Bn in 2020 and is growing at a CAGR of over 7%.

Developments in continuous flow chemistry and other green synthesis methods are helping improve process efficiency and sustainability in Global Pharmaceutical Intermediates Market Size .This is important given environmental regulations around solvent use and wastewater treatment in the industry.

Market Trends

Growing outsourcing of intermediates manufacturing - Major pharmaceutical companies are outsourcing intermediates production to contract manufacturing organizations to benefit from their specialized capabilities and flexible production capacities.

Bio-based routes for API synthesis - Advancements in biological catalysts such as enzymes are enabling more sustainable bio-based pathways for synthesizing certain classes of intermediates from renewable feedstocks instead of traditional petrochemical routes. This has benefits for environmental footprint and production economics.

Market Opportunities

Expanding generic drugs market in emerging economies - Markets like India, China, Brazil, Mexico and others offer high growth potential for generic drug makers and by extension intermediates producers capable of meeting quality and regulatory standards in these regions.

Synthesis of novel complex molecules - Advancements in areas like continuous flow chemistry, are opening up possibilities for cost-effective production of intricate intermediates for novel large molecule APIs and biologics that were previously difficult to manufacture at scale. This presents new opportunities.

Impact of COVID-19 on Global Pharmaceutical Intermediates market growth

The COVID-19 pandemic outbreak has impacted the growth of Global Pharmaceutical Intermediates market. The demand for pharmaceutical intermediates significantly increased during the pandemic due to rising cases of COVID-19 infections globally. Pharmaceutical companies ramped up the production of APIs and drug formulations to meet the global demand for medications to treat infected patients. However, the supply chain disruptions caused by lockdowns and restrictions imposed by various countries adversely impacted the market during the initial months of 2020. It led to shortage of raw materials and intermediates required for drug manufacturing. The transportation of goods was also hampered due to halted operations at airports and seaports across major economies.

However, with easing of lockdown measures and reopening of economies post mid-2020, the market revived. Pharmaceutical companies augmented their production capacity of pharmaceutical intermediates to fulfil the supply demands for finished drugs. Various government initiatives to facilitate uninterrupted movement of essential goods aided in restoring stable supply chains. Introduction of vaccines further supported recovery in the market. Moreover, rising investments in immunotherapy, monoclonal antibodies and targeted therapies to treat chronic ailments accelerated the consumption of intermediates in drug development activities post-pandemic. Thus, despite short-term declines, the long-term prospects of Global Pharmaceutical Intermediates market remain positive owing to increased healthcare spending worldwide.

In terms of geographical regions, North America accounted for the largest share in Global Pharmaceutical Intermediates market in terms of value in the pre-COVID period due to well-established pharmaceutical industry and growing healthcare expenditures in US and Canada. However, Asia Pacific is projected to be the fastest growing region during the forecast period. This is attributed to increasing generic drug manufacturing, expanding biologics industry and rising medical tourism in China, India and other Asia Pacific countries. Additionally, favourable regulatory environment and lower production costs compared to developed markets continue to attract major pharmaceutical companies to set up manufacturing facilities in Asia Pacific, thereby driving the demand for pharmaceutical intermediates in the region.

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