From Science to Success: Watch How Pharmaceutical Intermediates are Powering Tomorrow's Medications

The increasing emphasis on precision medicine, which customizes treatments based on an individual's genetic makeup, is driving the demand for specialized intermediates. Additionally, innovations in drug development are improving efficiency and lowering costs, further supporting the market's expansion.

The pharmaceutical intermediates market is also experiencing growth due to the rising incidence of chronic diseases and increased research and development within the pharmaceutical sector. The growing prevalence of these diseases is a significant factor contributing to this market's development.

Pharmaceutical intermediates are vital chemical compounds used in the production of active pharmaceutical ingredients (APIs). These intermediates undergo various chemical processes to form the final API, which plays a key role in the effectiveness of medications.

In 2023, the global pharmaceutical intermediates market was valued at USD 46.78 billion and is expected to grow to USD 49.91 billion by 2024, eventually reaching USD 80.87 billion by 2031, with a compound annual growth rate (CAGR) of 7.14% during the forecast period.

Impact of Noncommunicable Diseases on Global Mortality

In 2023, the World Health Organization (WHO) reported that noncommunicable diseases (NCDs) were responsible for 41 million deaths annually, accounting for 74% of all global deaths. Of these, 17 million people die from NCDs before reaching the age of 70, with 86% of premature deaths occurring in low- and middle-income countries.

Analyst’s Review

Collaborations between biotechnology and biopharmaceutical firms are propelling market growth by advancing the creation of sustainable manufacturing processes for essential intermediates and APIs. These alliances are fostering more efficient and environmentally-friendly production methods, enhancing product consistency and quality while also addressing ecological concerns.

Willow Biosciences and Enterin Partner to Advance Sustainable Drug Manufacturing

In January 2024, Willow Biosciences Inc , a leading biotechnology firm, announced a strategic partnership with Enterin Inc. ., a clinical-stage biopharmaceutical company. The collaboration aims to develop innovative and sustainable manufacturing processes for key intermediates and active pharmaceutical ingredients (APIs) used in the treatment of neurodegenerative and metabolic disorders.

Ami Organics and Fermion Forge Agreement to Expand API Supply

In December 2023, Ami Organics Ltd. , a prominent global producer of advanced pharmaceutical intermediates, announced a new agreement with Fermion to supply two additional active pharmaceutical ingredients (APIs). This partnership is designed to broaden Ami Organics' product range and strengthen its presence in the global pharmaceutical market, addressing the increasing demand for specialized APIs.

Pharmaceutical Intermediates Market Regional Analysis

Based on region, the global market has been classified into North America, Europe, Asia-Pacific, MEA, and Latin America.

North America pharmaceutical intermediates market share stood around 34.69% in 2023 in the global market, with a valuation of USD 16.23 billion. The market in North Ameirca is driven by advanced healthcare infrastructure and substantial R&D investments.

Asia-Pacific is anticipated to witness the fastest growth at a CAGR of 8.03% over the forecast period, due?to?the expanding pharmaceutical industry, increasing healthcare spending, and the rising prevalence of chronic diseases. Countries like China and India have become major manufacturing hubs due to their cost-effective production and significant R&D investments.

Sumitomo Chemical to Build New API Manufacturing Facility in Japan

In March 2022, Sumitomo Chemical ., Ltd. unveiled plans to construct a new manufacturing facility for active pharmaceutical ingredients (APIs) and intermediates for small molecule drugs at its Oita Works in Japan. This new plant aims to boost the company's ability to provide high-quality APIs and intermediates in response to the rising demand for small molecule drugs. The facility is set to commence operations in September 2024.

Pharmaceutical Intermediates Market Trends

Pharmaceutical companies are increasingly focusing on customized intermediates designed for specific drug formulations and production processes, which is significantly driving market growth.

This trend highlights a shift in the industry towards more specialized and targeted drug development, necessitating intermediates with precise chemical properties. Customized intermediates are essential for creating highly specific drug compounds that offer improved efficacy and safety profiles.

As the industry moves towards precision medicine and innovative therapeutic solutions, the demand for tailored intermediates is anticipated to grow. This rising need for specialized intermediates is expected to fuel advancements in drug manufacturing and contribute to the expansion of the pharmaceutical intermediates market in the coming years.

U.S. Health Spending Reaches $4.5 Trillion in 2022

An article from the American Medical Association (AMA) published in July 2024 reports that health spending in the United States rose by 4.1% in 2022, totaling USD 4.5 trillion, which equates to USD 13,493 per capita.

Companies are implementing impactful strategies, such as expanding services, investing in research and development (R&D), establishing new service delivery centers, and optimizing their service delivery processes, which are likely to create new opportunities for market growth.

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