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Best Ways to Evaluate Suppliers in the Global Active Pharmaceutical Ingredients Market amid COVID-19 Outbreak

Mar 26, 2020

The growth of the active pharmaceuticals market is mainly driven by the expansion of the oncology pharmaceutical sector and continuous investment in technologies and the manufacturing capacity. There are significant developments in both developed and developing economies, where the pharmaceuticals infrastructure is improving all the time.

But the outbreak of COVID-19 is expected to impact the active pharmaceutical ingredients market. A large number of manufacturers of active pharmaceutical ingredients are located within Chinese provinces that were epicenters for the virus outbreak. They are responsible for the production of some vital drugs, apart from other active pharmaceuticals ingredients.

Moreover, the landscape is highly fragmented due to the involvement of a wide range of industry players. The different approaches used by different companies to develop active pharmaceutical ingredients make it difficult for companies to evaluate their sourcing process and suppliers.

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Ways to Evaluate Suppliers in a Dynamic Active Pharmaceuticals Ingredients Market 

In-house vs outsourcing 

It is one of the most important metrics for companies to evaluate due to the ongoing global crisis. Outsourcing manufacturing can significantly reduce the cost for pharmaceutical companies but can dramatically increase lead times for production. However, in-house involves major resource investment, risks, and increases product complexities. Large contract manufacturing organizations (CMOs) can operate at metric ton scale capacity and offer the highest production volumes but can lack diversity. There are higher chances that smaller CMOs will scale up their production. While selecting a CMO, companies must ensure that the providers can deliver specific pharmaceutical ingredients at the correct scale.

Are you looking for suppliers in established manufacturing hubs such as the US and Germany? Contact us to identify the CMOs with a proven track record of successful commercial production in the active pharmaceutical ingredients market.

Identify innovators

Seeing the current market situation, pharmaceutical companies should extensively focus on CMOs that are actively developing innovative active pharmaceutical ingredients and improving production methods and technologies within their domain. The right CMOs will focus on controls to prevent cross-contamination and protect workers, invest in improving active pharmaceutical ingredients composition, prioritize high-quality processing, and select manufacturing methods that reduce lead time and bring down costs.

We understand that finding such CMOs is an arduous task and requires accurate market intelligence. Stay a step ahead by requesting a free demo of our procurement platform to gain exclusive insights to identify providers with the strongest innovation record.

Lowering production scales 

Producing active pharmaceutical ingredients at a kilo scale can make more sense in today’s time for CMOs and outsourcing pharmaceutical companies alike. Focusing on small-scale production can help CMOs to prevent contamination as small batches are less likely to be contaminated. Creating high potency active pharmaceutical ingredients can be a solution for companies as they are significantly stronger and produced in smaller quantities. MT-scale production is a high investment risk and can put millions of dollars at risk if the batch fails. Smaller-scale CMOs can prove to be effective for pharmaceutical companies in such a crisis to reduce lead times and minimize costs.

To partner with CMOs that specialize in the global active pharmaceutical ingredients market, request more information from our analysts.

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