Chinese APIs are an important part of the pharmaceutical trade supply chain

Chinese APIs are an important part of the pharmaceutical trade supply chain
The relevant data indicate that in recent years the global API market has been in growth mode, according to statistics, the global total of more than 3,000 pharmaceutical companies have the ability to carry out chemical API production and processing, but due to the continuous standardization of the API market, only less than 20% of the raw material manufacturers have the ability to continue to supply and meet market norms, these API manufacturers are mainly located in four countries: China, the United States, Italy and In other words, these four major API suppliers supply 80% of the global API market demand. In the foreseeable future, there will be no major changes in this API market landscape, although there will be local market fluctuations, for example, Chinese API suppliers rely on their unique advantages to further expand their market share.
The importance of APIs in the pharmaceutical field
It is important to know that drug development is a rather complex and long process, from target establishment to the final successful launch of a new drug this process takes several years or even a dozen years, this is because there are a lot of uncertainties in the drug development process, the process of successful development and launch of a drug is a process of constantly overcoming these uncertainties. So how to shorten the new drug development cycle and improve the efficiency of new drug development is a challenge that many pharmaceutical companies have to face.
In the whole process of new drug development API process research plays a pivotal role, research API process is to meet the needs of different research stages of API, the whole API development process is a continuous exploration and improvement process, the implementation of the entire new drug development cycle.
Comparison of global API suppliers
It´s mentioned above the article that if we look at the API supply region, API suppliers are mainly concentrated in China, India, Italy, the United States and other parts of Europe. Western Europe, represented by Italy, used to be the world´s largest API production base. But with the fragmentation of the global API market, especially in Europe and the United States for the importance of environmental protection and increasing labor cost, highlighting the environmental and cost advantages of China and India, the global API market is gradually shifting to Asia Pacific. At present, China´s API production capacity has accounted for one-third of the world´s total API production capacity, ranking first in the world. India API have a relative advantage in prince, but the capacity is not as good as Chinese API.
The advantages of Chinese API
As the global supply side of APIs is shifting to Asia Pacific countries, Chinese companies are gradually gaining a foothold in the global API industry, as evidenced by the fact that China now has the largest number of API manufacturing sites in the world. Over the past 10 years, China has seen rapid growth in the number of DMFs and CEPs awarded annually, second only to India in terms of new approvals per year globally. For Western pharmaceutical companies, there are price advantages to sourcing APIs from China and India, and emerging pharmaceutical countries can produce them at a lower cost under more relaxed environmental standards.
The advantages of Chinese API are reflected in the following aspects.
1. In terms of API prices, China has a significant advantage. Statistics show that the cost of producing API in China is typically 20% lower than in India, and this China-specific price advantage is due in large part to cheaper raw materials.
2. China has a huge advantage in terms of the production scale. The above article has mentioned the China-specific advantage of production capacity, as for some API, the production capacity of some Chinese companies is double to some India´s companies. In the case of amoxicillin, for example, China's average production capacity is 14,000 tons, while India's amoxicillin capacity is only 5,000 tons, so China´s huge advantage of production capacity speak for itself.
3. China also has certain advantage in API policy. The Chinese government has always attached importance to people´s livelihood, so far the standardization of API market has been quite considered and the Chinese government has been urging and encouraging the continue optimization of API enterprises and companies, in consequence the quality of China´s API has been complimented generally.
How to get information about quality API suppliers in China
Finally, as API procurement how to get information about suppliers. There are many different suppliers in the market, how to identify quality suppliers. Here is a shortcut for you to get the best quality API suppliers in China through Pharmacare Pharmaceutical Technology Co. Pharmacare is a comprehensive pharmaceutical trade service provider, committed to building a bridge between Chinese pharmaceutical companies and global pharmaceutical companies, the company has in-depth cooperation with many well-known domestic API companies in China, whether you want to purchase cost-effective APIs or finished products you can choose Pharmacare!