Global API market poised for significant changes

The global API market is poised for significant transformation in the coming decade, with growth concentrated in complex APIs, biologics, peptides, and high-potency APIS (HPAPIs).

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These segments are increasingly favoured due to their therapeutic efficacy and alignment with the evolving pharmaceutical pipeline, particularly in areas such as oncology, immunotherapy, and rare diseases, said RAKESH REDDY, Managing Director, Aparna Pharmaceuticals in an interaction with NANDITA VIJAYASIMHA. Excerpts

How do you see the current landscape for APIs in India and globally?

The global API market is at an inflection point. While India and China have traditionally dominated the space, the market today is shaped by supply chain realignments, more stringent regulatory oversight, and rising demand for high-quality APIs. Europe and the United States are diversifying sourcing strategies to avoid overdependence on any single geography, creating opportunities for Indian manufacturers. India now contributes more than 20 per cent of global API production and supplies to over 200 countries. This offers an opportunity for domestic companies to move beyond high-volume, low-cost APIs and instead focus on complex molecules, high-value intermediates, and niche therapeutic categories where compliance and innovation create long-term competitive advantage.

What are the emerging trends in this space?