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EasT vs WEsT in
ThE baTTlE For aPis
A study by the CPA, in cooperation with Studio
Tamburini, produced a detailed analysis on the
fierce competition among the major countries
producing APIs, writes POLI Industria Chimica
and CPA president Dr Alberto Mangia.
Author
Dr Alberto Mangia has been MD and general manager of
Poli Industria Chimica SpA since 1996. His first years in the
chemical and pharmaceutical industries were spent with
Pierrel, and he has held management positions with the Italian
subsidiaries of Swedish and Dutch multinational companies.
Mangia has been president of the Chemical Pharmaceutical
Generic Association (CPA) since 2003. The CPA is the chemical-
pharmaceutical industries’ strategic consultant, offering services
to researchers, scientists and experts. Studio Tamburini is
a Milan-based marketing institute specialising in industrial
market searching.
T
he results of the Chemical Pharmaceutical Generic Western market
Association’s study Competition in the World APIs Market The penetration of the market by Asian API manufacturers,
make interesting reading. On one hand, the market shares however, changes from one geographical area to another. Thus,
held on a worldwide scale by Western API producers (Italy in for example, in the Western European market for generic APIs,
pole position, followed by Spain, traditionally the two world- market share held by Indian and Chinese manufacturers is
leading producers of generic APIs; see p73) are progressively forecast to increase from approximately 57 per cent in 2005
decreasing. On the other hand, APIs sales by Asian competitors to about 67 per cent by 2010, while India and China’s share in
(in particular India and China) are growing. the USA is expected to rise from almost 16 per cent in 2005 to
approximately 25 per cent by 2010.
The following figures are clear evidence: total market share
held by both Italy and Spain in the world generic APIs market This different penetration rate between Western Europe and the
fell from 27.4 per cent in 2004 to 24.2 per cent in 2005, and is USA by Asian manufacturers is mainly related to the fact that it
forecast to further decrease to 15 per cent by 2010. Similarly, is easier for an Asian company to enter the EU market than in
Italy and Spain’s share in the total APIs market (which includes the USA, where a more stringent regulatory system (in terms of
both generic and branded/innovative APIs) decreased from 15.3 inspections and approvals) is in force compared with the EU.
per cent in 2004 to 13.6 per cent in 2005, and is projected to
further decrease to a modest 9.5 per cent by 2010. Eastern sales
Globally, Indian API sales are lower than China’s. However, this
On the contrary, market shares held by Asian API manufacturers is expected to show the fastest growth rate during the next few
are quickly increasing, as shown by the following figures. In 2004 years (over 19 per cent yearly average for 2005–10), with export
market share held by India and China together in the world sales growing faster than sales to India’s domestic market.
market for generic APIs was 42.4 per cent; this grew to 44.6 per
cent in 2005 and is projected to reach approximately 60 per cent The penetration by Indian API competitors into the USA is
by 2010. Likewise the penetration by the two countries into the expected to be strong and, within the next five years, market
total APIs market (generic and branded/innovative APIs) shows share will treble (despite the fact that Indian companies
a substantial growth trend: both India and China held a share of usually implement sales of finished dosage forms, with the
19 per cent in 2004, which grew to 20.7 per cent in 2005, and is API incorporated; this means the erosion of market shares for
forecast to reach 32 per cent by 2010. Western competitors).
World Pharmaceutical Frontiers • Providing a global perspective on the pharmaceutical industry • www.worldpharmaceuticals.net Page 72
World Pharmaceutical Frontiers • Providing a global perspective on the pharmaceutical industry • www.worldpharmaceuticals.net Page 73