How is current market volatility, led by inflationary pressures, supply-chain disruptions, and geopolitical uncertainty, impacting sourcing and supply decisions?A look at what is on the industry’s radar from DCAT
China is an important source of raw materials, intermediates, and active pharmaceutical ingredients, particularly APIs for the generics market. There are over 3,000 APIs companies worldwide, of which China accounts for 48.0% and India 19%, according to a recent analysis by the Chemical Pharmaceutical Generic Association (CPA), which represents Italian manufacturers of active ingredients and intermediates for the generics market. A well-chronicled and continuing trend over the past decades is the increasing shifting of API manufacturing from the highly regulated markets (US, EU) toward low-cost Asian countries, particularly China and India. For example, 80% of API import volume for the EU comes from five countries: China (which accounts for 45%), India, the US, the UK, and Indonesia, according to a recent analysis by the European Commission.