Boom expected in global COVID-19 drug associated APIs market

Market set to grow as companies face fewer operational restrictions and COVID-19 drug development continues at pace

The market is forecast to grow from $5.55 billion in 2021 to $5.99 billion in 2022 at a compound annual growth rate of 7.9%. It is expected to reach $7.55 billion in 2026. 

The report’s authors say this growth is largely due to a global relaxation of COVID-19 restrictions, allowing companies to resume operations without the challenges posed by social distancing and remote working requirements. The market was also stunted by disruptions to medical product supply chains during the pandemic, exacerbated by export restrictions implemented in some countries. Now that companies are recovering, the market is expected to surge.  

The main classes of drugs in COVID-19 drug-associated APIs are antimalarials, bronchodilators, antibiotics, antivirals and others. The different types of drugs include generic and branded and involve various business modes such as captive API (produced internally by pharma companies) and merchant API (produced by third-party providers).  

Currently North America is the largest region in the COVID-19 drug-associated APIs market, but the Middle East is earmarked to become the fastest growing region in the coming years.  

Key players in the market include Dr. Reddy's Laboratories, Lianyungang Guike Pharmaceutical, Alembic Pharmaceutical, Wockhardt, Sandoz Srl, Lupin Limited, Aurobindo Pharma, Shanghai Shyndec Pharmaceutical (Haimen) and Yatai Pharma. 

They are now faced with the challenge of ensuring adequate plant and production capacity to meet the increasing demand. Some have already expanded their operations, with Alembic Pharmaceuticals ramping up production of azithromycin in 2020 and FUJIFILM announcing the expansion of its manufacturing capacity and increase in the production of influenza antiviral Avigan.