High Potency Active Pharmaceutical Ingredients Market Product Segments and Growth outlook Report By 2028

High Potency Active Pharmaceutical Ingredients Industry Overview

The global high potency active pharmaceutical ingredients market size is expected to reach USD 38.84 billion by 2028, according to a new report by Grand View Research, Inc. It is expected to expand at a CAGR of 8.4% from 2021 to 2028. The market is driven by an increased focus on targeted therapies and a surge in demand for cancer therapies.

U.S. high potency APIs market size, by product, 2018 - 2028 (USD Billion)

High Potency Active Pharmaceutical Ingredients Market Segmentation

Grand View Research has segmented the global high potency active pharmaceutical ingredients market on the basis of product, manufacturer type, drug type, application, and region:

Based on the Product Insights, the market is segmented into Synthetic and Biotech.

  • The synthetic segment accounted for the largest revenue share of over 70.0% in 2020 as these molecules are effective in the treatment of a wide range of diseases at very small dosages. Many synthetic molecules are also expected to go off patent in the coming years, which is anticipated to fuel the market growth. 
  • The biotech segment is expected to witness lucrative growth in the forecast period owing to technological advancements and the high level of efficacy of these ingredients. Biotech HPAPIs mainly consist of drug molecules obtained after the usage of molecular techniques, such as recombinant DNA technology. 

Based on the Drug Type Insights, the market is segmented into Innovative and Generic.

  • Innovative drugs accounted for the largest revenue share of more than 70.0% in 2020 owing to the increasing R&D initiatives for novel drug development and favorable government regulations. The growing focus on personalized and precision medicines, such as Antibody Drug Conjugates (ADCs), to treat specific patient conditions is driving the development of novel APIs, making innovation in this domain a high-impact rendering driver of the market.
  • Generic drug molecules are estimated to witness the fastest growth over the forecast period. The segment is driven by factors such as the patent expiry of branded drugs and lower costs. Generic drugs are also gaining market share owing to the rising number of patients in developing economies with low per capita income.

Based on the Application Insights, the market is segmented into Oncology, Hormonal Disorders, Glaucoma and Others.

  • The oncology segment held the largest revenue share of over 75.0% in 2020 due to the large proportion of HPAPIs being used in oncology drugs. The rise in the prevalence of cancer is a key factor accelerating the demand for HPAPIs.
  • The glaucoma segment is anticipated to witness exponential growth in the years to come owing to its increasing prevalence in developed and developing economies. Diseases such as HIV need support from high potency molecules for treatment and with an upward trend in the number of HIV patients, the demand for these molecules is expected to increase. 

Based on the Manufacturer Type Insights, the market is segmented into In-house and Outsourced.

  • The in-house segment accounted for the largest revenue share of over 70.0% in 2020 and is projected to maintain its lead over the forecast period. The companies invest heavily, in terms of infrastructure and developing costs, to develop these molecules.
     
  • The outsourced segment is driven by factors such as the rising demand for biopharmaceuticals and the growing cost of manufacturing these molecules in-house. Moreover, dual sourcing is becoming a key strategy adopted by these companies. Major companies are looking to leverage their production capabilities in the surrounding Asian countries in an attempt to provide active pharmaceutical ingredients (APIs) to other drugmakers. For instance, in November 2017, Eisai Pharmaceuticals invested over USD 9.32 million to install manufacturing equipment for API production in India.

High Potency Active Pharmaceutical Ingredients Regional Outlook

  • North America
  • Europe
  • Asia Pacific
  • Latin America
  • Middle East & Africa (MEA)

Key Companies Profile & Market Share Insights

The proprietary technology of companies, such as drug designing and delivery technology, helps develop novel treatment alternatives through collaborations with other key players, which may increase the number of research initiatives.

Some prominent players in the global high potency active pharmaceutical ingredients market include:

  • BASF SE
  • CordenPharma
  • Reddy’s Laboratories Ltd.
  • CARBOGEN AMCIS AG
  • Pfizer, Inc.
  • Sun Pharmaceutical Industries, Ltd.
  • Teva Pharmaceutical Industries Ltd.
  • Albany Molecular Research, Inc.
  • Sanofi S.A.
  • Merck & Co., Inc.
  • Novartis AG
  • Hoffmann-La Roche Ltd.
  • Bristol-Myers Squibb Company
  • Boehringer Ingelheim International GmbH
  • Cipla Inc.

Order a free sample PDF of the High Potency Active Pharmaceutical Ingredients Market Intelligence Study, published by Grand View Research.

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