Originally Published on: SpendEdge |The Biggest Problems with Pharmaceutical Raw Materials Market, And How You Can Fix It
The pharmaceutical industry, amid prosperity, grapples with challenges affecting crucial raw material suppliers. Beyond chemicals, encompassing active pharmaceutical ingredients (APIs), intermediaries, and additives, these challenges demand strategic resolutions for sustained growth.
Top Challenges in the Pharmaceutical Raw Materials Market:
Countering Counterfeit Product Threat: Infiltration of counterfeit drugs into the global pharmaceutical supply chain poses a severe risk. These products may contain substandard APIs, incorrect ingredients, or inaccurate dosages, endangering public health. Manufacturers of pharmaceutical raw materials face the brunt of these fraudulent activities. Countermeasures, including medicine surveillance services and advanced identification technologies like mass spectrometry, FTIR spectroscopy, NMR spectroscopy, Raman spectroscopy, and GC-MS, are crucial to combat this challenge.
Navigating Impact of Rising Trade Taxes: The misalignment of drug manufacturing hubs and raw material suppliers introduces complications. While drug manufacturers concentrate in primary markets like the US and Europe, sourcing raw materials from emerging nations like Brazil, China, India, and Israel incurs additional expenses in trade taxes and customs fees. Policies favoring domestic manufacturing, such as the "Made in America" movement, contribute to this challenge by enforcing double-digit tariffs on companies outsourcing manufacturing activities.
Overcoming Regulatory Approval Delays: Stringent regulations by government bodies and medical associations, due to the sensitivity of drugs and medicines to public health, are inevitable. Suppliers of pharmaceutical raw materials must secure approvals from regulatory entities like the FDA and EMA. Delays in the approval process can impede time-to-market, risking patent expiry and triggering operational challenges, significantly impacting drug manufacturers' profitability and hindering overall market growth.
In navigating these challenges, innovative solutions and strategic approaches are essential for the sustained growth of both the pharmaceutical industry and its raw material suppliers.
