“Growing Shift Toward Outsourcing API Manufacturing”
- One prominent trend in the global small molecule active pharmaceutical ingredient (API) market is the growing shift toward outsourcing API manufacturing
- This trend is driven by the rising demand for cost efficiency, access to specialized expertise, and the need for scalable production capabilities among pharmaceutical companies
- For instance, companies such as Pfizer and Novartis are increasingly partnering with contract development and manufacturing organizations (CDMOs) such as Lonza and Cambrex to enhance flexibility and streamline API production
- The reliance on external manufacturers is expanding across both generic and branded drug segments, particularly for complex or high-volume APIs
- As the pressure to accelerate drug development timelines and reduce operational costs grows, this trend is expected to significantly shape strategic decisions and investments in the API market
