Challenges facing Active pharmaceutical ingredient industries


Just like any other industry, the pharmaceutical industry, especially the active pharmaceutical ingredient industry is facing a series of challenges.

These challenges are experienced in many sectors which include higher manufacturing costs, tightened regulations form health agencies and increased competition that exists among these companies.

Talking of competition, the captive active pharmaceutical ingredient manufacturing market has for a long time been the dominant segment across the continent. But this market has recently been going down into ashes because of increased competition. This is happening because of the rise of contract manufacturers who are now dominating the market.

Pharmaceutical manufacturing

Regulatory compliance is another key problem facing this industry. Due to the harsh regulations and standards, many pharmaceuticals have opted to outsource the active pharmaceutical ingredient from well-developed companies. Many of the companies or rather pharmaceutical located in developing or underdeveloped country find it costly to produce their own APIs and hence turn on western countries for the same.Increase in production

As an evidence of the challenges facing this industry, the FDA passed a ban on a major active pharmaceutical ingredient manufacturer in India, after it was discovered that the company was manipulating there lab tests. This is an indication of the strictness and high standards that need to be observed in that sector. This is why active pharmaceutical ingredients are very needed in the industry and it helps to create and make several medicines for various diseases.

Although this industry is facing many challenges, research has shown that the active pharmaceutical ingredient market has a growth rate of about 6.6% per annum. This clearly indicates that the global market will be at $186 billion by the year 2020. Due to improved academic standards in many medical schools across the world, pharmaceutical industries are prone to grow bigger as more experts will be induced in the sector. This will encourage research and development in the API industry too.


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