High potency active pharmaceutical ingredient (HPAPI) market set to be worth US$25.1bn by 2023


Driven by growth in cancer therapies

The global high potency active pharmaceutical ingredient (HPAPI) market is expected to reach US$25.1bn by the end of 2023, nearly doubling the figure of $12.6bn for 2014. A compound annual growth rate (CAGR) of 7.8% is forecasted between 2015 and 2023, according to a report from Transparency Market Research.

The report, High Potency Active Pharmaceutical Ingredient (HPAPI) Market – Global Industry Analysis, Size, Share, Growth, Trends, and Forecast 2015–2023, takes into account multiple factors that currently influence the HPAPI market, as well as those that are expected to shape it in the near future.

Targeted therapy is a relatively new aspect of cancer treatment. It helps medical professionals make use of new drugs that can specifically target cancer cells while doing little to no damage to healthy cells. It is an increasingly popular field of research and development in the pharma industry and the global HPAPI market forms a major aspect of it. APIs or HPAPIs are frequently used in targeted cancer therapy and the primary driver for the market, therefore, will be its use in the field of oncology.

The report segments the global market into oncology, cardiovascular, anti-diabetic, musculoskeletal, central nervous system, and others therapeutic areas. Within these areas, the market is led by the segment of oncology therapeutics, which currently occupy more than 50% of the market.

The new developments in oncology are boosting the global HPAPI market

Manufacturers are improving their capacities to meet the increasing demand for HPAPIs in this area. The new developments in oncology are also boosting the global HPAPI market and allowing it to gain a higher percentage of the global pharmaceutical ingredients market, although it currently holds only a very small share.

In terms of the types of manufacturers, the global HPAPI market is segmented into third-party manufacturers and in-house manufacturers. In terms of product types, it is divided into generic HPAPIs and innovative HPAPIs, while it is divided into synthetic and biotech HPAPIs on the basis of synthesis.

According to the report, a major restraint on the global HPAPI market is the pending expiration of major patents, including those for Rituxan, Remicade, Humira, Erbitux, Synagis, Herceptin, and Avastin.

The report's geographical assessment of the market shows the majority of manufacturers to be based in North America and Europe. Earlier issues and legal restrictions had discouraged North American players from seeking outsourcing support from Asian countries, but legal implications have smoothed out over time, which has allowed a larger number of key players to spread their base across Asia Pacific. As a result, this region is expected to show the fastest growth in the global HPAPI market in the forecast period.

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The key players are WuXi AppTec, Sigma-Aldrich, Pfizer, Sandoz International, Novasep, Lonza, Dr Reddy's, Cambrex and Alkermes.