Originally Published on: SpendEdge |Active Pharmaceutical Ingredients Market: Assessing Suppliers During COVID-19
The growth of the active pharmaceutical market is fueled by the expanding oncology pharmaceutical sector and ongoing investments in technology and manufacturing capacity. However, concerns arise with a significant number of manufacturers located in regions affected by the COVID-19 outbreak.
Impact of COVID-19 on the Active Pharmaceutical Ingredients Market:
The COVID-19 outbreak is anticipated to impact the active pharmaceutical ingredients market, especially as many manufacturers are situated within Chinese provinces that were epicenters for the virus. These manufacturers play a crucial role in producing vital drugs and other active pharmaceutical ingredients.
Challenges in Supplier Evaluation During the Pandemic:
The active pharmaceutical ingredients market is characterized by a highly fragmented landscape, with various industry players adopting different approaches to develop these ingredients. This diversity makes it challenging for companies to effectively evaluate their sourcing processes and suppliers.
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Ways to Evaluate Suppliers in a Dynamic Active Pharmaceuticals Ingredients Market:
In-house vs. Outsourcing:
- Outsourcing Dynamics: Outsourcing manufacturing can reduce costs but may increase lead times during the global crisis.
- In-house Considerations: In-house production involves significant resource investment, risks, and increased product complexities.
- Choosing CMOs: Selecting a Contract Manufacturing Organization (CMO) requires careful consideration of their ability to deliver specific pharmaceutical ingredients at the correct scale.
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Identify Innovators:
- Market Situation Focus: Companies should focus on CMOs actively developing innovative active pharmaceutical ingredients.
- Key Criteria: Look for CMOs prioritizing worker safety, preventing cross-contamination, and investing in improving ingredients composition and manufacturing methods.
- Proven Innovation Record: Seek CMOs with a proven track record of successful commercial production in the active pharmaceutical ingredients market.
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Lowering Production Scales:
- Kilo-scale Production: Producing active pharmaceutical ingredients at a kilo scale can be advantageous for CMOs and outsourcing pharmaceutical companies.
- Contamination Prevention: Smaller batches are less likely to be contaminated, reducing the risk for CMOs.
- Risk Mitigation: Smaller-scale CMOs can effectively reduce lead times and minimize costs, providing a solution during the crisis.
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