ALBANY, New York, January 8, 2018 /PRNewswire/ --

A recent business intelligence by Transparency Market Research (TMR) has detected that the global pharmaceutical chemicals market is heavily dependent on mergers and acquisition activities, as it not only helps increment the consumer base for the companies but it also strengthens their supply network. In addition to that, a number of them are making a foray into the region of Asia Pacific, wherein skilled labor is available at affordable prices and small players have mushroomed in the recent past. It must be noted that cost of a production plant in India is nearly half of that in Western countries, and the country has second most USFDA-approved manufacturing plants outside of the U.S.

However, western regulatory agencies have imposed regulatory checks over the companies operating in Asia Pacific and this factor has affected considerably. The report identifies Lonza Group, BASF SE, Johnson Matthey, Dishman Group, Lanxess, Vertellus Holdings LLC, Porton Fine Chemicals, and Jubilant Life Sciences Ltd are some of the key companies currently operating in the global pharmaceutical chemicals market.

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Demand to Increment at CAGR 6.1% during 2017-2025

During the forecast period 2017 to 2025, the TMR report has projected the demand in the global pharmaceutical chemicals market to multiply at a notable CAGR of 6.1%, and has estimated that the opportunities in the market will translate into a revenue of US$268,833.5 mn by 2025, which would be substantially more than its evaluated worth of US$167,718.2 mn in 2017.

Based on type, the report has detected significantly stronger demand for the segment of building blocks for APIs or advanced intermediates, whereas on the basis of drug type, the market continues to gain traction from the segment of proprietary drugs, although generic drug segment is projected for a much stronger CAGR of 10.9% during the aforementioned forecast period.

Prevalence of Several Chronic Diseases Driving Demand 

The escalating percentage of geriatrics in the global population has been consistently adding to the demand for generic as well as proprietary drugs as the people aged over 60 invariably suffer from numerous chronic diseases, particularly cardiovascular, respiratory, diabetes, and vitamin deficiency. In the recent past, nanotechnology has emerged as a mode that is revolutionizing the pharmaceutical industry, aiding them in improving the efficiency of their manufacturing units as well as during research and development of new drugs.

Increasing cases of non-communicable diseases, improving income level of urban population in a number of emerging economies, government support to improve healthcare infrastructure in respective countries, and persistent research and development activities to formulate new drugs are some of the key factors driving the demand in the global pharmaceutical chemicals market. In addition to that, the segment of proprietary drugs are gaining traction as they not only allow companies to use the existing distribution system and marketing techniques, but also offer consumers the trust of the brand name against the rising fear of counterfeits. Patent expiration of branded drugs is a key influencer of the growth and prime reason for generating high revenue for the generic drugs segment.

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Concerns Pertaining to Quality Restraining Market 

Stringent regulatory norms set by the Food and Drugs Administration (FDA), stabilizing investments on research and development activities in a number of countries, concerns pertaining to the maintenance of optimum quality, and high cost of manufacturing of building blocks of APIs and advanced intermediates are some of the restraints obstructing the prosperity of the global pharmaceutical chemicals market.

The information presented in this review is based on a Transparency Market Research report, titled, "Pharmaceutical Chemicals Market (Type - Solvents, Reagents/Catalysts, KSMs/intermediates, and Building blocks for APIs/Advanced intermediates; Drug Type - OTC, Generic, Super Generic, and Proprietary) - Global Industry Analysis, Size, Share, Growth, Trends, and Forecast, 2017-2025"

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Key Segments of the Global Pharmaceutical Chemicals Market 

Pharmaceutical chemicals Market: Type Analysis

• Solvents
• Reagents/Catalysts
• KSMs/intermediates
• Building blocks for APIs/Advanced intermediates

Pharmaceutical chemicals Market: Drug Type Analysis 

• OTC
• Generic
• Super generic
• Proprietary

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SOURCE Transparency Market Research