Return to Blog April 26, 2024

Three API Trends to Watch Right Now


Active pharmaceutical ingredient market trends are constantly in flux, even as markets settle from the lingering impacts of the pandemic. Tilley Distribution is helping manufacturers and suppliers realign capacity, research and bring better products to market.

Contributors at every link of the supply chain will face considerable challenges in the years ahead. Those challenges are offset by tremendous opportunities to improve processes to lead to more effective pharmaceuticals and a healthier world. At Tilley, we see three large trends changing how our partners do business in the API market.

A Broader Supplier Base

In the wake of pandemic-era supply chain challenges, active pharmaceutical manufacturers have sought to diversify their roster of API suppliers and reduce overreliance on specific partners or geographic regions. Risk mitigation has led to dual sourcing, expanded product offerings and, in some cases, a renewed interest in vertical integration.

2023 was a banner year for vertical integration throughout the pharmaceutical industry, with the largest pharmacy chain in the US acquiring the largest primary care network, plus the biggest private insurance company making substantial investments in home health.

Upstream, pharmaceutical manufacturers are making similar efforts to grow, control and streamline operations. Every part of the active ingredients supply chain holds an element of risk and the responsibility to address adverse possibilities before they impact results.

A Shifting Regulatory Environment

Price-focused regulations in North American and European markets are changing research and development priorities. Market players continue to be pressed to reevaluate their processes due to shortened exclusive periods, broader price negotiations and the long-term effects of the Food and Drug Omnibus Reform Act (FDORA) of December 2022.

Many companies are outsourcing non-production work such as quality control, research & development and regulatory compliance. At Tilley, we have deep experience supporting and leading these initiatives on behalf of our clients, especially those in high-potency compounds (or HPAPIs).

A Changing Demographic

The global geriatric population will exceed 1.6 billion by 2050, led by aging populations in Africa, Latin America and developed markets in the US and Canada. Today, some of the most impactful API drug development projects are focused on age-related cardiovascular and neurological diseases.

The successful formulation of these drugs will be critical to active pharmaceutical ingredient manufacturers in the US, many of which are looking to regain market share overseas as leaders in cardiovascular disease treatments.

Globally, there’s renewed emphasis on local pharmaceutical manufacturing capacity in developing countries. Geopolitical instability between the US and China, as well as simmering regional tensions between India, Pakistan and Bangladesh, threaten to put ingredient and finished good access at risk.

Reliable access to raw and specialty pharmaceutical ingredients and production capabilities are a primary focus for policymakers worldwide.  

The Active Pharmaceutical Ingredients Distributor You Can Grow With

Tilley Distribution supports our supplier and manufacturer partners in tackling market headwinds and shifting global landscapes. We back our personalized, collaborative services with global supplier and distribution resources. For more than 50 years, our organization has invested in the long-term growth of our supplier and manufacturing partners with robust proprietary assets and deep technical expertise.

We’re committed to being the active ingredients distributor you can count on.

To see what Tilley Distribution can do for your organization, speak with a Tilley representative today.