HPAPI contract manufacturing to value $14.6 billion by 2030

Rising demand for cancer drugs, combined with high in-house manufacturing costs is driving growth in the high-potency API outsourcing market.

three dimensional concept of an active pharmaceutical ingredient cell

The high potency active pharmaceutical ingredient (HPAPI) contract manufacturing market is expected to grow from $7.32 billion in 2022 to $14.65 billion by 2030, according to a market report.

This growth is driven by the increased demand for oncology drugs, advances in manufacturing technology and a rise in targeted therapies.

There has been a boost in the outsourcing activities of high potency active pharmaceuticals as it removes the need for investment in expensive infrastructure, the report stated.

Demand for HPAPIs increased during the COVID-19 pandemic. During the first half of the pandemic, the supply chain was disrupted, which reduced research-based activities. However, during the second half, the surge in demand for vaccines to fight the coronavirus enhanced the industry’s need for raw materials and product intermediates of API molecules.

The high cost of producing HPAPIs in-house, combined with the pressure to produce affordable drugs, contributed ‘significantly’ to more companies taking more outsourcing related actions, the researchers added.

A wide range of outsourcing providers offer HPAPI services. Large-scale contract development and manufacturing organisations (CDMOs) are the most likely outsourcing choice as they provide large volumes. However, due to the small volumes required for dosage, small-scale providers are also gaining importance, findings from the report show.

The Asia Pacific region is expected to register the fastest growth from 2022-2030 due to the presence of the large HPAPI manufacturers in China.

The oral solid dosage (OSD) form segment is expected to see the biggest rate spike during the forecast period, according to the projections.

Key companies in the global HPAPI contract manufacturing market include AbbVie, Aurigene Pharmaceutical Services Ltd, Catalent Inc, Curia Global, Inc, Gentec Pharmaceutical Group, Lonza, Pfizer CentreOne, Piramal Pharma Solutions and VxP Pharma, Inc.