The Future of High Potency Active Pharmaceutical Ingredients (HPAPIs), Market Forecasts and Growth Opportunities to 2015 - Growing Demand Drives Inves

17 May 2010 • by Natalie Aster

GBI Research’s new report , "The Future of High Potency Active Pharmaceutical Ingredients (HPAPI), Market Forecasts and Growth Opportunities to 2015 – Growing Demand Drives investment in Capacity" provides an in-depth analysis of the global high potency active pharmaceutical ingredients industry. The research presents detailed analysis and forecasts of the HPAPI markets in the major regions of the world. The report contains a global opportunity analysis, market trends, drivers and restraints, and a market share analysis of major producers in the important geographical markets of the world. It also includes market forecasts of the major countries. The report presents a comprehensive analysis of the global HPAPI market covering all the major parameters.

The Global High Potency Active Pharmaceutical Ingredients Market is Poised for High Growth in the Forecast Period

Due to the growing targeted therapy approach in the treatment of diseases, the demand for high potency API is increasing fast. The major therapeutic application of these compounds is in oncology drugs. As oncology is the fastest growing therapeutic segment in the pharmaceutical industry, it is driving the high potency market worldwide.

Growth in oncology in the coming years, together with the increasing usage of high potency API in other therapies, is going to be major driver for the global market of high potency active pharmaceutical ingredients in the coming five years. The global high potency active pharmaceutical ingredients market is set to grow at a CAGR of 8.4% from 2009 to 2015.

The Global High Potency Active Pharmaceutical Ingredients Market is Governed by the Branded Sector

The use of high potency active pharmaceutical ingredients is a comparatively new and growing concept in the global pharmaceutical industry. This market is dominated by the innovators’ patented high potency drugs. Hence, the branded sector holds a major share of the total high potency market. The generic sector has a small share, but it is set to grow as the branded highly potent drugs will go off patent in the years to come.

North America and Europe Together Hold More Than Eighty Percent of the Global High Potency API Market

North America accounts for the majority of the global high potency market. The most pharmaceutical research and development is carried out in the North American region. This is followed by the European region. A large number of discoveries of new high potency compounds are being made in Europe. The pharmaceutical industry in North America and Europe is highly regulated and advanced in terms of the acceptance and adaptability of new therapies.

North American high potency active pharmaceutical ingredients market share for the year 2009 was close to 45.6% of the global market. The European market for high potency compounds held a share of 35% of the global market.

Asia Pacific is the Fastest Growing Market for High Potency Active Pharmaceutical Ingredients

The healthcare standards in the Asia Pacific region are rising very fast as the economies in that region grow. The acceptance of and adaptability towards new drugs and therapies is also growing in the Asia Pacific countries. As a result, the region shows the fastest growth rates in the high potency market. In 2009, the Asia Pacific region held a share of 9.3% in the global high potency active pharmaceutical ingredients market. This accounted for $0.7 billion in terms of market sales revenues. Japan holds a dominant share in the Asia Pacific high potency API market and is the fastest growing market. The Indian and Chinese markets are closely following Japan with high growth rates.

The Rest of the World held a 10.1% share of the global HPAPI market in 2009. Some countries in the Rest of the World are also growing very fast as markets for high potency active pharmaceutical ingredients.

High Potency Active Pharmaceutical Ingredients Segment has Attractive Growth Opportunities

With high growth rates, the high potency API segment is showing attractive growth opportunities for the pharmaceutical players. A number of companies, recognizing the strong growth potential, are expanding their facilities for the production of HPAPI. Also, a number of contract manufacturers are coming up with high potency manufacturing capabilities. There is an increasing trend of contract manufacturing being used in the high potency segment. The high potency API global market is relatively uncompetitive and the demand is much more than the supply. The competition is going to increase in the coming ten years.

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