Recently, SpendEdge, a well-known procurement intelligence solution provider, released a global raw material market procurement intelligence report, which provides an in-depth overview of bulk pharmaceutical raw material expenditure analysis, which can be used to obtain pricing insights in different regions.
Check top API manufacturers in OKCHEM:
Hunan Huari Pharmaceutical Co. ltd(citric acid, GMP)
Zhejiang Davi Pharmaceutical Co., Ltd (Methotrexate
Sodium, ISO certified, GMP)
Taizhou Ian Trade Co.,Ltd (ISO Certified,
GMP, DMF)
Hebei Guanlang Biotechnology Co., Ltd. (citric
acid, potassium chloride)
Kaiping Genuine BiochemicalPharmaceutical Co., Ltd (Citicoline Sodium, GMP, KOSHER, HALAL)
According to BusinessWire, factors such as
crude oil price volatility, regulatory expansion, rigorous and lack of
innovative drug formulas will control the price movements of most
pharmaceutical raw materials, leading to potential purchase price increases in
the market. The government is actively improving the existing medical system,
which will have a major impact on the growth of consumption in the global API
market. It is expected that the category expenditure for this market will
increase by more than $112 billion between 2018 and 2023.
The top three bulk drug price trends
affecting the total cost of ownership of buyers in the market
The report indicates that prices in the
bulk drug raw materials market will be driven by factors that have long-term
negative effects on the purchasing situation in the market. There are currently
no immediate remedies to counter these consumer accelerators. However, an
in-depth understanding of price trends and supplier cost structures across
regions will help buyers determine which areas can optimize their spending in
the bulk drug raw materials market. The main factors driving the price increase
of bulk pharmaceutical raw materials are: supply shortage, rising crude oil prices,
and soaring R&D expenses of bulk pharmaceutical raw material suppliers.
API price trend
The report states that due to the
suspension of production plants in key production areas, the global market for
bulk pharmaceutical raw materials faces a serious supply shortage. According to
the analysis of bulk pharmaceutical raw materials expenditure, such supply
tightening and rising demand will lead to a sharp rise in the prices of bulk
pharmaceutical raw materials. The rise in crude oil prices will have a ripple
effect on the procurement of bulk pharmaceutical raw materials. Rising crude
oil prices will force solvent suppliers to increase the price of hydrocarbons
and oxygenated solvents used to produce pharmaceutical raw materials. Rising
crude oil prices will also lead to higher prices for intermediate products,
which will lead to an increase in operating costs for suppliers. Purchasing
expenses will expand due to the increase in supplier R&D expenses. They are
investing in new drugs or developing innovative technologies for
manufacturing/business processes. Increasing purchase spending has largely
evaded the buyer's return on investment. Acceleration of various expenditures
will further increase this expenditure.
Major areas of the API market

In the Asia Pacific region, due to growing
drug sales in countries such as India, Malaysia, China, South Korea and
Indonesia, the Asia Pacific region will achieve the highest demand growth
during the forecast period. The increase in sales is due to several health insurance
plans offered by governments in these countries to improve their medical
infrastructure. According to IMS statistics, during the period from 2010 to
2014, the market share of the pharmaceutical market represented by emerging
countries such as China, Brazil, India and Russia increased gradually; the
Chinese market grew fastest, and the market share increased by 8%. At 11%; at
the same time, in the developed countries and regions represented by the United
States, Europe and Japan, the pharmaceutical market share is declining year by
year. The increased demand for biologics and biosimilars for the treatment of
chronic diseases in North America will drive spending in the bulk
pharmaceutical raw materials market in the region. Suppliers in North America are
increasing their investment in biosimilars development through the use of
recombinant DNA technology, which is expected to contribute to the growth of
spending in the API market in the region.

In general, global crude oil prices have been on the rise, and because of the market instability, suppliers are holding a wait-and-see attitude, and the price of raw materials will be affected more or less.