Exploratory Study on Active Pharmaceutical Ingredient Manufacturing for Essential Medicines

Active Pharmaceutical Ingredients (API) of good quality is core to the manufacturing of effective and safe essential drugs. The price of APIs is the main cost driver for manufacturing. Only a limited number of large manufacturers of finished pharma...

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Bibliographic Details
Main Authors: Bumpas, Janet, Betsch, Ekkehard
Format: Working Paper
Language:English
en_US
Published: World Bank, Washington, DC 2013
Subjects:
BID
GMP
MNC
SEE
Online Access:http://documents.worldbank.org/curated/en/2009/09/11809103/exploratory-study-active-pharmaceutical-ingredient-manufacturing-essential-medicines
http://hdl.handle.net/10986/13682
id okr-10986-13682
recordtype oai_dc
repository_type Digital Repository
institution_category Foreign Institution
institution Digital Repositories
building World Bank Open Knowledge Repository
collection World Bank
language English
en_US
topic ACTIVE INGREDIENTS
ACTIVITIES
ADVERTISING
ANALGESICS
ANTIBIOTICS
ANTIMALARIALS
AUDITS
BARRIER TO ENTRY
BARRIERS TO ENTRY
BID
BRAND
BRANDS
BROKERS
BUDGET
CAPACITY BUILDING
CAPITAL BASES
CAPITAL INVESTMENT
CAPITAL REQUIREMENT
CAPITAL REQUIREMENTS
CAPSULES
CERTIFICATION
CHECKS
CHILDREN
CHLOROQUINE RESISTANCE
CHRONIC DISEASES
COMMERCIAL MARKETS
COMMODITIES
COMMON MARKET
COMPANIES
COMPANY
COMPETITION
COMPETITIVE MARKETS
COMPETITIVENESS
COMPETITORS
CONTAMINATION
CONTESTABILITY
CONTRACT
CONTRACTS
CORPORATION
COUNTRY RISK
COURSE OF THERAPY
CURRENCY
DEMAND
DEMAND FORECASTING
DEPRECIATION
DERIVATIVES
DEVELOPING COUNTRIES
DEVELOPING COUNTRY
DIFFERENTIAL PRICING
DIRECT COSTS
DOMINANT FIRMS
DONOR
DONOR FINANCING
DONORS
DRUG EVALUATION
DRUG MARKETS
DUE DILIGENCE
EFFICIENT MARKET
ENTERPRISE
EQUIPMENT
ESSENTIAL DRUGS
EXCHANGE
EXCHANGE RATES
EXPANSION
EXPORT MARKETS
EXPORTERS
FAIR
FAIR PRICE
FINANCING
FINISHED PRODUCT
FIRM
FIRMS
FOREIGN CURRENCY
FUTURE
GENERIC DRUGS
GLOBAL ECONOMY
GLOBAL MARKET
GMP
GOOD
GOOD MANUFACTURING PRACTICES
GOODS
GRANT
HEALTH CARE
HUMAN DEVELOPMENT
IMMUNIZATION
INTELLECTUAL PROPERTY
INTELLECTUAL PROPERTY RIGHTS
INTERFERON
INTERNATIONAL BANK
INTERNATIONAL COMMERCE
INTERNATIONAL FINANCE
INTERNATIONAL MARKET
INTERNATIONAL STANDARDS
INVESTING
INVESTMENT
ISONIAZID
LABORATORIES
LACK OF TRANSPARENCY
LAWS
LEGAL COUNSEL
LOCAL GOVERNMENT
LOCAL MANUFACTURERS
LOCAL MARKET
MANUFACTURER
MANUFACTURERS
MARKET
MARKET ECONOMY
MARKET ENTRY
MARKET INFORMATION
MARKET PRICE
MARKET PRICES
MARKET SEGMENT
MARKET SHARE
MARKET SHARES
MARKET SIZE
MARKET STRUCTURES
MARKET TRANSPARENCY
MARKETING
MARKETPLACE
MARKETS
MEDICINE
MNC
MONITORING
MULTINATIONAL
MULTINATIONAL CORPORATION
OIL PRICES
OPEN MARKET
OPTION
OPTIONS
PACKAGING
PARTIES
PARTNER
PARTNERS
PAYMENT TERMS
PHARMACEUTICAL
PHARMACEUTICAL INDUSTRY
PHARMACEUTICAL INSPECTION
PHARMACEUTICAL MANUFACTURERS
PHARMACEUTICAL MANUFACTURING
PHARMACEUTICAL PRODUCTION
PHARMACEUTICAL PRODUCTS
PHARMACEUTICAL SECTOR
PHARMACEUTICAL TECHNOLOGY
PHARMACEUTICALS
PHARMACY
PLANNING
PLEDGES
POOLED PROCUREMENT
PORTFOLIO
PORTFOLIO MANAGEMENT
PREDATORY PRICING
PREPAYMENT
PRICE
PRICE COMPETITION
PRICE QUOTATIONS
PRICE VOLATILITY
PRICES
PRICING
PRICING SCHEMES
PROCUREMENT
PRODUCT
PRODUCT QUALITY
PRODUCTS
PROFIT
PROFIT MARGIN
PROFIT MARGINS
PUBLIC HEALTH
PURCHASING
QUALITY ASSURANCE
QUININE
REGULATORY AUTHORITIES
REGULATORY AUTHORITY
REGULATORY CAPACITY
REGULATORY STANDARDS
RETURN
REVENUES
SALES
SECURITY
SEE
STATE OWNED ENTERPRISES
STORE
SUPPLIER
SUPPLIERS
SUPPLY
SUPPLY CHAIN
SUPPLY CHAIN MANAGEMENT
TABLETS
TARGET MARKET
TECHNICAL ASSISTANCE
TECHNICAL SUPPORT
TENDERING
TRADING
TRANSACTION
TRANSACTION COSTS
TRANSACTIONS
TRANSFER PRICE
VACCINES
VALUE
WORKING CAPITAL
WORLD MARKET
spellingShingle ACTIVE INGREDIENTS
ACTIVITIES
ADVERTISING
ANALGESICS
ANTIBIOTICS
ANTIMALARIALS
AUDITS
BARRIER TO ENTRY
BARRIERS TO ENTRY
BID
BRAND
BRANDS
BROKERS
BUDGET
CAPACITY BUILDING
CAPITAL BASES
CAPITAL INVESTMENT
CAPITAL REQUIREMENT
CAPITAL REQUIREMENTS
CAPSULES
CERTIFICATION
CHECKS
CHILDREN
CHLOROQUINE RESISTANCE
CHRONIC DISEASES
COMMERCIAL MARKETS
COMMODITIES
COMMON MARKET
COMPANIES
COMPANY
COMPETITION
COMPETITIVE MARKETS
COMPETITIVENESS
COMPETITORS
CONTAMINATION
CONTESTABILITY
CONTRACT
CONTRACTS
CORPORATION
COUNTRY RISK
COURSE OF THERAPY
CURRENCY
DEMAND
DEMAND FORECASTING
DEPRECIATION
DERIVATIVES
DEVELOPING COUNTRIES
DEVELOPING COUNTRY
DIFFERENTIAL PRICING
DIRECT COSTS
DOMINANT FIRMS
DONOR
DONOR FINANCING
DONORS
DRUG EVALUATION
DRUG MARKETS
DUE DILIGENCE
EFFICIENT MARKET
ENTERPRISE
EQUIPMENT
ESSENTIAL DRUGS
EXCHANGE
EXCHANGE RATES
EXPANSION
EXPORT MARKETS
EXPORTERS
FAIR
FAIR PRICE
FINANCING
FINISHED PRODUCT
FIRM
FIRMS
FOREIGN CURRENCY
FUTURE
GENERIC DRUGS
GLOBAL ECONOMY
GLOBAL MARKET
GMP
GOOD
GOOD MANUFACTURING PRACTICES
GOODS
GRANT
HEALTH CARE
HUMAN DEVELOPMENT
IMMUNIZATION
INTELLECTUAL PROPERTY
INTELLECTUAL PROPERTY RIGHTS
INTERFERON
INTERNATIONAL BANK
INTERNATIONAL COMMERCE
INTERNATIONAL FINANCE
INTERNATIONAL MARKET
INTERNATIONAL STANDARDS
INVESTING
INVESTMENT
ISONIAZID
LABORATORIES
LACK OF TRANSPARENCY
LAWS
LEGAL COUNSEL
LOCAL GOVERNMENT
LOCAL MANUFACTURERS
LOCAL MARKET
MANUFACTURER
MANUFACTURERS
MARKET
MARKET ECONOMY
MARKET ENTRY
MARKET INFORMATION
MARKET PRICE
MARKET PRICES
MARKET SEGMENT
MARKET SHARE
MARKET SHARES
MARKET SIZE
MARKET STRUCTURES
MARKET TRANSPARENCY
MARKETING
MARKETPLACE
MARKETS
MEDICINE
MNC
MONITORING
MULTINATIONAL
MULTINATIONAL CORPORATION
OIL PRICES
OPEN MARKET
OPTION
OPTIONS
PACKAGING
PARTIES
PARTNER
PARTNERS
PAYMENT TERMS
PHARMACEUTICAL
PHARMACEUTICAL INDUSTRY
PHARMACEUTICAL INSPECTION
PHARMACEUTICAL MANUFACTURERS
PHARMACEUTICAL MANUFACTURING
PHARMACEUTICAL PRODUCTION
PHARMACEUTICAL PRODUCTS
PHARMACEUTICAL SECTOR
PHARMACEUTICAL TECHNOLOGY
PHARMACEUTICALS
PHARMACY
PLANNING
PLEDGES
POOLED PROCUREMENT
PORTFOLIO
PORTFOLIO MANAGEMENT
PREDATORY PRICING
PREPAYMENT
PRICE
PRICE COMPETITION
PRICE QUOTATIONS
PRICE VOLATILITY
PRICES
PRICING
PRICING SCHEMES
PROCUREMENT
PRODUCT
PRODUCT QUALITY
PRODUCTS
PROFIT
PROFIT MARGIN
PROFIT MARGINS
PUBLIC HEALTH
PURCHASING
QUALITY ASSURANCE
QUININE
REGULATORY AUTHORITIES
REGULATORY AUTHORITY
REGULATORY CAPACITY
REGULATORY STANDARDS
RETURN
REVENUES
SALES
SECURITY
SEE
STATE OWNED ENTERPRISES
STORE
SUPPLIER
SUPPLIERS
SUPPLY
SUPPLY CHAIN
SUPPLY CHAIN MANAGEMENT
TABLETS
TARGET MARKET
TECHNICAL ASSISTANCE
TECHNICAL SUPPORT
TENDERING
TRADING
TRANSACTION
TRANSACTION COSTS
TRANSACTIONS
TRANSFER PRICE
VACCINES
VALUE
WORKING CAPITAL
WORLD MARKET
Bumpas, Janet
Betsch, Ekkehard
Exploratory Study on Active Pharmaceutical Ingredient Manufacturing for Essential Medicines
geographic_facet Sub-Saharan Africa
relation Health, Nutrition and Population (HNP) discussion paper;
description Active Pharmaceutical Ingredients (API) of good quality is core to the manufacturing of effective and safe essential drugs. The price of APIs is the main cost driver for manufacturing. Only a limited number of large manufacturers of finished pharmaceutical products have their own API manufacturing capabilities, and none of them can make all required APIs in-house. The majority of manufacturers, including all those located in Sub-Saharan Africa (with the exception of one company in South Africa) have to buy all APIs in the open market. The paper tries to make the structures of the API market more transparent, trying to determine how difficult it is for small manufacturers in developing countries to navigate the global API market and ensure that they get a quality product at a fair price. It also looks into the competitiveness of the market, trying to assess the risk that manufacturers or traders monopolize parts of the API market for essential medicines with low commercial attractiveness. The author confirms the initial assumption that the API market provides a challenge in particular to small manufacturers, who have limited means to verify the quality of the APIs they are buying. One potential way to address this problem would be to broaden the World Health Organization (WHO) prequalification system to include APIs for drugs that are on the WHO model list for essential medicines.
format Publications & Research :: Working Paper
author Bumpas, Janet
Betsch, Ekkehard
author_facet Bumpas, Janet
Betsch, Ekkehard
author_sort Bumpas, Janet
title Exploratory Study on Active Pharmaceutical Ingredient Manufacturing for Essential Medicines
title_short Exploratory Study on Active Pharmaceutical Ingredient Manufacturing for Essential Medicines
title_full Exploratory Study on Active Pharmaceutical Ingredient Manufacturing for Essential Medicines
title_fullStr Exploratory Study on Active Pharmaceutical Ingredient Manufacturing for Essential Medicines
title_full_unstemmed Exploratory Study on Active Pharmaceutical Ingredient Manufacturing for Essential Medicines
title_sort exploratory study on active pharmaceutical ingredient manufacturing for essential medicines
publisher World Bank, Washington, DC
publishDate 2013
url http://documents.worldbank.org/curated/en/2009/09/11809103/exploratory-study-active-pharmaceutical-ingredient-manufacturing-essential-medicines
http://hdl.handle.net/10986/13682
_version_ 1764423998517542912
spelling okr-10986-136822021-04-23T14:03:09Z Exploratory Study on Active Pharmaceutical Ingredient Manufacturing for Essential Medicines Bumpas, Janet Betsch, Ekkehard ACTIVE INGREDIENTS ACTIVITIES ADVERTISING ANALGESICS ANTIBIOTICS ANTIMALARIALS AUDITS BARRIER TO ENTRY BARRIERS TO ENTRY BID BRAND BRANDS BROKERS BUDGET CAPACITY BUILDING CAPITAL BASES CAPITAL INVESTMENT CAPITAL REQUIREMENT CAPITAL REQUIREMENTS CAPSULES CERTIFICATION CHECKS CHILDREN CHLOROQUINE RESISTANCE CHRONIC DISEASES COMMERCIAL MARKETS COMMODITIES COMMON MARKET COMPANIES COMPANY COMPETITION COMPETITIVE MARKETS COMPETITIVENESS COMPETITORS CONTAMINATION CONTESTABILITY CONTRACT CONTRACTS CORPORATION COUNTRY RISK COURSE OF THERAPY CURRENCY DEMAND DEMAND FORECASTING DEPRECIATION DERIVATIVES DEVELOPING COUNTRIES DEVELOPING COUNTRY DIFFERENTIAL PRICING DIRECT COSTS DOMINANT FIRMS DONOR DONOR FINANCING DONORS DRUG EVALUATION DRUG MARKETS DUE DILIGENCE EFFICIENT MARKET ENTERPRISE EQUIPMENT ESSENTIAL DRUGS EXCHANGE EXCHANGE RATES EXPANSION EXPORT MARKETS EXPORTERS FAIR FAIR PRICE FINANCING FINISHED PRODUCT FIRM FIRMS FOREIGN CURRENCY FUTURE GENERIC DRUGS GLOBAL ECONOMY GLOBAL MARKET GMP GOOD GOOD MANUFACTURING PRACTICES GOODS GRANT HEALTH CARE HUMAN DEVELOPMENT IMMUNIZATION INTELLECTUAL PROPERTY INTELLECTUAL PROPERTY RIGHTS INTERFERON INTERNATIONAL BANK INTERNATIONAL COMMERCE INTERNATIONAL FINANCE INTERNATIONAL MARKET INTERNATIONAL STANDARDS INVESTING INVESTMENT ISONIAZID LABORATORIES LACK OF TRANSPARENCY LAWS LEGAL COUNSEL LOCAL GOVERNMENT LOCAL MANUFACTURERS LOCAL MARKET MANUFACTURER MANUFACTURERS MARKET MARKET ECONOMY MARKET ENTRY MARKET INFORMATION MARKET PRICE MARKET PRICES MARKET SEGMENT MARKET SHARE MARKET SHARES MARKET SIZE MARKET STRUCTURES MARKET TRANSPARENCY MARKETING MARKETPLACE MARKETS MEDICINE MNC MONITORING MULTINATIONAL MULTINATIONAL CORPORATION OIL PRICES OPEN MARKET OPTION OPTIONS PACKAGING PARTIES PARTNER PARTNERS PAYMENT TERMS PHARMACEUTICAL PHARMACEUTICAL INDUSTRY PHARMACEUTICAL INSPECTION PHARMACEUTICAL MANUFACTURERS PHARMACEUTICAL MANUFACTURING PHARMACEUTICAL PRODUCTION PHARMACEUTICAL PRODUCTS PHARMACEUTICAL SECTOR PHARMACEUTICAL TECHNOLOGY PHARMACEUTICALS PHARMACY PLANNING PLEDGES POOLED PROCUREMENT PORTFOLIO PORTFOLIO MANAGEMENT PREDATORY PRICING PREPAYMENT PRICE PRICE COMPETITION PRICE QUOTATIONS PRICE VOLATILITY PRICES PRICING PRICING SCHEMES PROCUREMENT PRODUCT PRODUCT QUALITY PRODUCTS PROFIT PROFIT MARGIN PROFIT MARGINS PUBLIC HEALTH PURCHASING QUALITY ASSURANCE QUININE REGULATORY AUTHORITIES REGULATORY AUTHORITY REGULATORY CAPACITY REGULATORY STANDARDS RETURN REVENUES SALES SECURITY SEE STATE OWNED ENTERPRISES STORE SUPPLIER SUPPLIERS SUPPLY SUPPLY CHAIN SUPPLY CHAIN MANAGEMENT TABLETS TARGET MARKET TECHNICAL ASSISTANCE TECHNICAL SUPPORT TENDERING TRADING TRANSACTION TRANSACTION COSTS TRANSACTIONS TRANSFER PRICE VACCINES VALUE WORKING CAPITAL WORLD MARKET Active Pharmaceutical Ingredients (API) of good quality is core to the manufacturing of effective and safe essential drugs. The price of APIs is the main cost driver for manufacturing. Only a limited number of large manufacturers of finished pharmaceutical products have their own API manufacturing capabilities, and none of them can make all required APIs in-house. The majority of manufacturers, including all those located in Sub-Saharan Africa (with the exception of one company in South Africa) have to buy all APIs in the open market. The paper tries to make the structures of the API market more transparent, trying to determine how difficult it is for small manufacturers in developing countries to navigate the global API market and ensure that they get a quality product at a fair price. It also looks into the competitiveness of the market, trying to assess the risk that manufacturers or traders monopolize parts of the API market for essential medicines with low commercial attractiveness. The author confirms the initial assumption that the API market provides a challenge in particular to small manufacturers, who have limited means to verify the quality of the APIs they are buying. One potential way to address this problem would be to broaden the World Health Organization (WHO) prequalification system to include APIs for drugs that are on the WHO model list for essential medicines. 2013-05-30T14:58:57Z 2013-05-30T14:58:57Z 2009-09 http://documents.worldbank.org/curated/en/2009/09/11809103/exploratory-study-active-pharmaceutical-ingredient-manufacturing-essential-medicines http://hdl.handle.net/10986/13682 English en_US Health, Nutrition and Population (HNP) discussion paper; CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, DC Publications & Research :: Working Paper Publications & Research Sub-Saharan Africa