High Potency APIs (HPAPI) Market – Trends Forecast Till 2030

Market Snapshot

Market Overview

The global High Potency APIs (HPAPI) Market size is projected to reach a CAGR of 10.1% from 2023-2030.

High potency APIs, or HPAPIs, are pharmacologically active ingredients that are extremely effective even in very low doses. The high-potency APIs have a very specific action and can provide significant efficacy even at low daily therapeutic doses. They are utilized in the formulation of highly potent medications because of their capacity to target specific disease cells. Small molecules have been used in HPAPIs to provide new patient treatment for respiratory disorders, cancer, and hormonal imbalance. These drugs have minimal adverse effects and target specific locations, allowing the patient to recover faster with no lingering effects.

The major growth factors of the High Potency APIs (HPAPI) Market are, first up the increasing demand for oncological, haematological, and hormonal disorder medications, second, comes the rising emphasis of pharmaceutical companies on manufacturing of HPAPIs and more precision drugs as compared to other drugs in the market, third and lastly, the advancements in technologies and extensive R&D efforts to develop HPAPIs and other novel therapies.

The restraining factors of the market are the risks that are associated with HPAPI.  Since HPAPIs exhibit high cytotoxicity and therefore there is further emphasis on the care taken to prevent cross-contamination (detrimental contamination with a different product) which becomes the major restraining factor. Another factor that affects the growth of the market is economics. Companies are under pressure to control costs and make these biopharmaceuticals available to general consumers.

The supply of API was severely affected due to the COVID-19 outbreak as the manufacturing hub of the HPAPI is in Southeast Asia namely China and India. The growth of the market slumped due to supply chain issues and manufacturing delays. Another blow was received by the sector in the form of the economic situation triggered by the pandemic in 2020. Players involved in manufacturing, however, are expected to benefit due to outsourcing to low-cost markets. The pressure from consumers to use active ingredient manufacturers makes the HPAPI market an attractive area for investment. Many firms in the HPAPI market had seen shrinking and lowering of profits during the pandemic which was followed by an explosive increase in the demand for the HPAPIs. This coupled with the opening of markets and easing of supply chains has led to a resurgence of the market as a whole and has led to many firms expanding at a rapid pace including those who were previously uninterested in the market or had little mainstream presence.

Delvens Industry Expert's Standpoint

The rising demand for high-potency APIs is seen due to the growing demand for oncology drugs. The increasing incidence of cancer globally created a demand for highly specific and potential drugs and also an increasing prevalence of chronic and infectious diseases, which require the use of high-potency drugs for effective treatment. Further, there is a huge need for powerful API-formulated drugs for the aging population in case of older patients eventually drive the high-potency APIs. Advanced therapies are focused on providing personalized medicines for targeted diseases, and increasing the efficiency of manufacturing processes of these APIs led to grow the market of high potency APIs in the next coming years.

Market Portfolio

Key Findings

• The type segment is further bifurcated into Innovative API Market and Generic API Market. The innovative segment will grow the largest share of the market. Some Factors contributing to the market growth can be increasing investments in R&D to drive the market growth of this segment.

• The synthesis segment is further segmented into Synthetic API Market and Biotech API Market. The synthetic HPAPI segment is to command the largest share during the forecast period. An increasing number of new APIs, approvals, and ease of production are driving the growth of the synthetic segment.

• The manufacturer’s segment is further fragmented into the Captive API Market ad Merchant API Market. The captive HPAPI manufacturers market accounts for the largest share of the market. Factors such as companies’ in-house manufacturing facilities for economic benefits drive the segment.

• The therapeutic application segment is further segmented into Oncology, Hormonal Imbalance, Glaucoma, and Other therapeutic applications. The oncology segment to dominate the market during the forecast period. The growing prevalence of cancer and the launch of new target therapies are the key factors for the growth in the segment.
   
• The market is also divided into North America, Europe, Asia-Pacific, South America, and Middle East and Africa. North America is expected to dominate the market during the forecast period. Factors such as the growing oncology sector, prevalence and incidence of chronic diseases, and lifestyle diseases drive the market segment in North America.

Regional Analysis

North America to Dominate the Market

• North America is expected to dominate the market during the forecast. Factors such as the growing oncology sector, prevalence and incidence of chronic diseases, and lifestyle diseases drive the market segment in North America.
   
• Moreover, the increase in research and development activities and the presence of favorable healthcare infrastructure are fuelling the growth of the overall regional market.

Competitive Landscape

• Pfizer Inc
• F Hoffmann La Roche Ltd
• Eli Lilly and Company
• Bristol Myers Squibb Company
• Novartis AG
• Sanofi
• Merck Sharp and Dohme Corp
• Bayer AG
• AbbVie
• Teva Pharmaceutical Industries Ltd
• Viatris Inc.

Recent Developments

• In 2022, Pfizer acquired Arena Pharmaceuticals. The deal will benefit in bringing the pipeline of Arena Pharmaceuticals to the company’s Inflammation and Immunology Therapeutic Area, helping in the further developments to change the lives of those with immuno-inflammatory diseases.
   
• In 2021, Sandoz, a Novartis division, successfully completed the acquisition of GSK’s Cephalosporin Antibiotics business. Through this transaction, Sandoz acquired the rights to three established brands (Zinnat, Zinacef, and Fortum) in more than 100 markets, further reinforcing its leading global position in antibiotics.

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• In-depth analysis of the changing trends of the market by visualizing the historic and forecast year growth patterns.

Report Scope