Major players in the API market include Teva Active Pharmaceutical Industries Limited (Israel), Ranbaxy Laboratories (India), Dr. Reddy's Lab (India), Boehringer Ingelheim GmbH (Germany), Lonza group (Switzerland), Lupin (India), Novartis (Switzerland), Aurobindo pharma (India), and Albemarle Corporation (U.S.).
Very few numbers of finished pharmaceutical product manufacturers has their own API manufacturing unit and nobody can make all required APIs in-house. It is basically not easy for API manufacturers in developing countries to ensure a product with quality at a reasonable price. API manufacturing involves conversion of raw materials into API and mixing API and excipients for final formulations. These formulations in the form of tablets, capsules or solutions are packaged and then marketed.
The global API market is segmented based on synthesis, customer base, business type and therapeutic applications. Depending on synthesis the market is classified into synthetic chemical API, biotech API and HPAPI (Highly Potent Active Pharmaceutical Ingredient). Biotech API is further segmented into mammalian cell culture, monoclonal antibodies, recombinant proteins, vaccines, insulin analog, growth hormones and interferons.
Mammalian cell culture accounted for the largest share in 2013, while monoclonal antibody segment is the fastest growing segment by 2020. Despite low production yields, high manufacturing cost and highly unstable cell culturing method mammalian culture is the largest due to post-translational mechanism present in living cells. Monoclonal antibodies are growing at a faster pace due to demand for biotech APIs and increasing venture capital investments that drives the market.