The pharmaceutical industry is constantly innovating and developing new drugs to combat diseases and improve drug efficacy. Active ingredients and excipients are two components that play a significant role in the drug development process. Pharmaceutical excipients are an inert additive substance which is used in the drug development process to carry the active drug to a particular part of the body, disintegrate drug into smaller particles, and to improve the medicine flavor. Pharmaceutical excipients are broadly categorized as per their functionality into binders and fillers, coating agent, disintegrants, flavoring agents, colorants, preservatives, and lubricants. Procurement experts from SpendEdge estimate a healthy growth rate 5.99% for this market owing to rise of generics and biosimilars manufacturing. The report also outlines APAC region to register the fastest growth rate because of the low cost of material, easy availability of cost-effective workforce, and presence of untapped resources in terms of manufacturing capabilities.
Growth of Biologics and Biosimilars
Manufacturing biologics is a complicated task as they are susceptible to minor changes. Manufacturers need to overlook the manufacturing process right from start to end carefully. In order to get desired outcomes, the pharma industry’s demand for pharmaceutical excipients is on the rise due to the growth of biologics and biosimilars. For instance, excipients that can mitigate the biological production risks and improve the production yield when using specific formulation technique are in high demand.
Shifting Focus in the APAC Region
APAC region has been identified as the fastest growing market for pharmaceutical products due to rising income levels and willingness to spend on modern healthcare. Additionally, manufacturers are also looking to shift their production facilities to this region due to lower cost and lax government policies. Consequently, the growth of pharma industry in this region has directly led to the growth in the pharmaceutical excipients market. For instance, in 2016, Ashland opened a pharmaceutical excipient plant in China for capturing the increasing regional demand for modern formulation technologies.
Use of Nanotechnology
Nanotechnology refers to the manipulation of matter with size less than a nanometer with varied applications in surface science, semiconductors, molecular engineering, and microbiology. In recent times, nanotechnology is increasingly being used in the pharma industry as it improves API solubility, medicine stability, enhances the pharmacological activity with targeted delivery. The emergence of such technologies is urging the pharma manufacturers to develop new techniques to enhance the capability of excipients.
Use in Identification of Counterfeit Medicines
The flow of counterfeit medicines in the market has been troubling the drug manufacturers and drug authorities for a very long time. Counterfeit medicines pose a serious health threat to the consumer, so it must be dealt with care by the concerned authorities. For instance, in 2015, the INTERPOL seized over 20 million fake and illicit medicinal drugs, with an estimated value of over US$80 million, circulating in the open market. In order to facilitate identification of counterfeit medicines, drug manufacturers include pharmaceutical excipients in the drugs. Consequently, the use of such excipients is also reducing the overall cost of testing the authenticity of medicines.
Read more about the trends in the pharmaceutical excipients market along with medicine formulation development, category management, strategic purchasing, pricing insights, and negotiation strategy in SpendEdge’s upcoming report on the global pharmaceutical excipients market.