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The pharma intermediates list offered by Indian API and intermediate manufacturing units is enormous – and today, India is one of the most important and fastest-growing suppliers for active pharmaceutical ingredients (API) and intermediates.

But how important are APIs manufacturing units and intermediate manufacturing units in India during COVID-19, and what will happen in the post COVID-19 world?

What Are APIs & Pharmaceutical Intermediates?

APIs, or Active Pharmaceutical Ingredients, are active ingredients in medication that cause its effects. A pain killer medicine, for example, may have an opioid-derived API in a small amount, ensuring the proper dosage for the end user.

Pharmaceutical intermediates are similar. These are chemicals and compounds that are combined to synthesize an API. By combining multiple intermediates, medicine can be created with lower costs compared to synthesizing each component on its own. There is a long pharma intermediates list, since tens of thousands of intermediates are used to create various active pharmaceutical ingredient compounds.

It’s Predicted That The API & Intermediate Market Will Reach $33.6 Billion By 2024

Demand for APIs and intermediates is growing, and has been forecasted by Zion Market Research to reach US $33.6 billion by the year 2024. According to this research report, India and China are both expected to be major market drivers in the pharmaceutical intermediate market, thanks to the high-quality, low-cost APIs and intermediates offered by both countries.

APIs made in India are much cheaper compared to those made in Europe and North America, while offering comparable quality and abiding by GMP (Good Manufacturing Practice) and the requirements of the FDA and other regulatory agencies – so multinational drug makers can enjoy major cost savings when using APIs and intermediates from India.

COVID-19 Could Help Drive Demand For Indian APIs & Intermediates

COVID-19 has disrupted worldwide supply chains, and drugmakers in both India and elsewhere in the world may be searching for a reliable supply of high-quality intermediates and APIs.

Because of this, India is in a great position to take advantage of a surge in demand. More than $1.2 billion US has been invested in Indian API and intermediate facilities, which will help drive demand both domestically and abroad in Europe, the United States, and other powerful nations.

This will also help reduce India’s reliance on China for APIs and pharmaceutical compounds – which was one of the reasons the Indian government has made such a large investment.

The Future Is Bright For API & Intermediate Manufacturing Units In India Post COVID-19

When it comes to selling intermediates and APIs nationally and using GMP from manufacturing to obtain certification globally, Indian intermediate and API manufacturers are in a great position. With a long pharma intermediates list and many exports that meet GMP, US FDA, and other manufacturing standards, India is in a position to overtake China in the future when it comes to manufacturing intermediate and API compounds for use in drug manufacturing – both domestically and abroad.

COVID-19 is one of the largest global pandemics in recent years, and it has affected almost every part of the Indian economy, including active pharmaceutical ingredient manufacturers, drug makers, and pharmaceutical research companies. In this blog, we will discuss the effects of COVID-19 on API manufacturing companies and the pharmaceutical industry in India at-large, and it may impact the future of this industry in post corona COVID 19 times

The State Of The Pharmaceutical Industry In India During COVID-19

COVID-19 has caused major shutdowns, interruptions in global supply chains, and lockdowns throughout 2020, and has affected many different parts of the economy in India, including the API pharmaceutical industry and pharmaceutical intermediate industry.

In April of 2020, for example, the pharmaceutical industry’s’ year-over-year (YoY) sales dropped 11.7% compared to April of 2019, with major API manufacturing companies and drug makers like Cipla, Zydus Cadila, and GlaxoSmith being impacted with major hits to their stock prices.

There are many different reasons for this. Active pharmaceutical ingredient manufacturers and drug makers have experienced major supply chain disruptions during the pandemic. There have also been changes in demand due to factors like delays on elective surgeries, and high demand for COVID-19 related drugs (respiratory medications) along with a corresponding drop in demand for non-COVID-19 related drugs.

However, since April and May, the industry has rebounded somewhat. COVID-19 is still spreading throughout India, but API manufacturing companies and drugmakers are adapting to this new environment.

What Will Happen During Post Corona COVID-19 Times? Our Predictions

Despite a drop in growth in 2020, we anticipate that the API pharmaceutical industry and drug making industries in India will continue to grow in the years to come – due to high demand for low-cost active ingredients and intermediates from global pharmaceutical companies.

The pharmaceutical industry in India has grown dramatically since 2009, when it was valued at US $12.6 billion. In 2019 – just 10 years later – it was valued at $40.2 billion.

Due to the low cost of manufacturing drugs in India, a large infrastructure of FDA-compliant drug makers and pharmaceutical intermediate manufacturers, and strong support from the Indian government, it’s likely that this growth will continue in the years and decades to come.

One major change is that Indian drug markers may attempt to reduce their reliance on API manufacturing companies from China. 70% of APIs used in India come from Chinese sources, which is one reason that drug makers had difficulty producing products when China’s supply chain was locked down. However, by investing in products from API manufacturing companies based in India, future disruptions to Indian pharmaceutical supply chains can be dramatically reduced.

The Outlook Is Strong For The Pharmaceutical Industry In India Post COVID-19 

With every challenge comes opportunities, and the Indian pharmaceutical industry is in a great position to continue innovating and becoming a larger competitor to other global pharmaceutical suppliers in China and other countries. Only time will tell what effects COVID-19 will have on the industry in the long-term, but it’s safe to assume that, despite this minor dip due to the coronavirus, the demand for high-quality, low-cost Indian pharmaceutical products and APIs will continue to grow in the coming years – both in India and worldwide.

COVID-19 has caused immense economic damage since the outbreak began spreading throughout the world in early 2020, and it has caused a major upheaval in the pharmaceutical industry worldwide. Its effects may forever alter how innovation & intellectual property function in the industry-leading to long-lasting alterations in how pharmaceutical companies do business.

The Pharmaceutical Industry Has Made An Unprecedented Shift To Find A Vaccine

Since the beginning of 2020, there have been nearly 30 million cases of COVID-19 coronavirus worldwide, causing almost a million deaths, with countries like The United States being hit particularly hard by the virus.

Because of this, a huge amount of funding has been provided to pharmaceutical companies in an effort to find a vaccine – as well as drugs that may help inhibit the symptoms and side effects of the COVID-19 Coronavirus.

The US government alone has awarded $9 billion in vaccine contracts. With 172 different countries showing interest in engaging private and public institutions to develop a vaccine, an unprecedented flow of funding is reaching pharmaceutical companies worldwide.

The Future Of Intellectual Property May Change In The Post Corona COVID 19 Era

As COVID-19 has shown, the innovation & intellectual property practices used by the pharmaceutical industries are not always helpful for the public good.

When multiple corporations are competing to respond to a major public health crisis, such as COVID-19, there is a risk that they will invest their time and energy in developing products that are unnecessary – duplicating each other’s efforts, and slowing down the process of developing a successful pharmaceutical product to treat COVID-19.

Because of this, it’s possible that in the post corona COVID 19 era, national governments may impose restrictions on these companies – requiring them to share the information about pharmaceutical products, trials, and other details in a collected pool of knowledge.

In fact, cooperating and sharing innovation & intellectual property when facing a serious threat like COVID 19 may be beneficial to the industry as a whole, and lead to higher profits. Why? Because COVID 19 has caused an expected 8% drop in global economic output, which is one of the largest economic shocks in recent history.

By taking steps to prevent another pandemic in the future – and working closely with one another if a new virus does spread worldwide – companies in the pharmaceutical industry can help preserve the global economy, and benefit from stronger sales as a whole.

COVID-19 Shows The Limitations Of Intellectual Property For Innovation

Innovation and intellectual property always go hand-in-hand. Sharing research and findings is currently rare in the pharmaceutical industry, where trade secrets are closely guarded.
But in the post corona COVID 19 era, this may not be the case. We think it’s likely that many pharmaceutical companies will see the benefits of working with each other, and create strategic alliances, mergers, and take other actions to improve R&D and create pharmaceutical products more quickly and efficiently.