by Pharmaceutical intermediates refer to chemical compounds or molecules that are produced during the multi-step synthesis of an API and can be isolated, purified or characterized. They help streamline drug development processes and ensure cost-effective production of medicines. The market leaders have increased their focus on developing green and sustainable processes to manufacture pharmaceutical intermediates.
The Global Pharmaceutical Intermediates Market is estimated to be valued at US$ 43.67 Bn in 2024 and is expected to exhibit a CAGR of 8.1% over the forecast period 2024 To 2031. Key players operating in the Pharmaceutical Intermediates are Evonik, Borregaard AS, Sudarshan Pharma, A.R. Life Science, Actylis, Saurav Chemicals Ltd., Lianhetech, Midas Pharma GmbH, Sanofi , BASF SE, Chiracon GmbH, Lonza, Chemcon Speciality Chemicals Limited., Modepro India Pvt. Ltd., Lifechem Pharma, Sarex, LANXESS.
Key Takeaways
Key players: Key players operating in the Global Pharmaceutical Intermediates Market Size are focusing on developing green intermediates through sustainable processes to reduce environmental footprint. Evonik recently launched a new route for an oncology intermediate using bio-based raw materials and BASF SE is investing in recycling technologies.
Growing demand: The demand for pharmaceutical intermediates is growing owing to increasing generics market and patent expiries of blockbuster drugs. Many large Pharma companies are outsourcing manufacture of intermediates to specialty chemical companies to ensure continuity of supplies.
Global expansion: Leading intermediates manufacturers are expanding globally through acquisitions and partnerships to cater to the rapidly growing pharmaceutical markets in Asia and Latin America. Lanxess recently acquired Emergency, a Israeli company to enhance its pharmaceutical business.
Market key trends
Sustainable processes is a major trend in the pharmaceutical intermediates industry. Many players are investing in continuous flow technologies, alternative solvents and bio-based routes to manufacture intermediates. Evonik’s new bio-based route for an oncology API intermediate reduces carbon footprint by 30%. Continuous research is also ongoing to implement circular economy principles by recycling of solvents and recover waste heat from reactions to increase yields. These initiatives will help pharmaceutical intermediates industry reduce environmental impact of operations in the long run.
Porter’s Analysis
Threat of new entrants: High capital requirements and established vendors create barriers for new companies entering the market. Bargaining power of buyers: Large pharmaceutical companies can negotiate lower prices from suppliers due to their high volume purchases. Bargaining power of suppliers: The presence of many suppliers reduces their individual bargaining power over prices charged to pharmaceutical companies. Threat of new substitutes: Limited product differentiation makes substitution between pharmaceutical intermediates supplied by different companies easier. Competitive rivalry: Many companies compete globally to supply pharmaceutical intermediates leading to pricing pressures.
Geographically, North America and Europe are currently holding over 60% share of the global pharmaceutical intermediates market in terms of value due to large pharmaceutical companies and generics manufacturers located in these regions. Asia Pacific region is anticipated to grow the fastest during the forecast period owing to expanding pharmaceutical production clusters in India and China along with rising demand for generics and biosimilars.
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1.Source: Coherent Market Insights, Public sources, Desk research
2.We have leveraged AI tools to mine information and compile it
