Market Trends of United Kingdom Active Pharmaceutical Ingredients (API) Industry
This section covers the major market trends shaping the UK Active Pharmaceutical Ingredients (API) Market according to our research experts:
Oncology Segment Expects to Register a High CAGR
Owing to crucial factors, such as the rising prevalence of various types of cancer and increasing company activities in developing drugs, the oncology segment is expected to witness significant growth in the active pharmaceutical ingredient market over the forecast period.
The 2021 statistics published by Breast Cancer Now observed that about 55,000 women are diagnosed with breast cancer in the United Kingdom every year. As per the same source, 46,000 people are diagnosed with breast cancer in England every year, followed by 4,700 in Scotland, 2,800 in Wales, and 1,500 in Northern Ireland. With the growing burden of cancer cases, the demand for oncology drugs is increasing. These drugs need API for drug formulation. Hence, the market is expecting a significant positive impact over the forecast period.
Additionally, the high healthcare expenditure in the country is also contributing to market growth. For instance, as per the data published by OECD, in June 2021, the United Kingdom's health spending as a share of GDP rose sharply, from EUR 257.6 billion (USD 273 billion) in 2020 to EUR 276.6 billion (USD 293.2 billion) in 2021. Thus, the increasing healthcare spending is expected to increase company activities and government initiatives in developing safe and effective treatment drugs. This is anticipated to fuel the demand for APIs, propelling the market growth.
Furthermore, the rising government initiatives in spreading cancer awareness and increasing funding for drug development in the country are expected to augment market growth. For instance, according to news published in July 2021, NHS England announced a new Innovative Medicines Fund (IMF) of EUR 680 million (USD 720.8 million) to fast-track promising new cancer drugs.
Similarly, in August 2022, researchers at the School of Pharmacy, Queen's University Belfast in Northern Ireland, received funding from Breast Cancer Now to develop new treatments for an aggressive form of breast cancer. In this case, Niamh Buckley and Helen McCarthy from the School of Pharmacy secured a GBP 228,900 (USD 278,168) grant from Breast Cancer Now to tackle protein p53 - found at very high levels in around 90% of triple-negative breast cancer tumors.
Therefore, owing to the factors such as the high burden of cancer in the country, rising healthcare expenditure, and growing government initiatives in spreading cancer awareness, the studied segment is anticipated to grow over the forecast period.
Branded Segment Expected to Own Significant Market Share
The branded segment is expected to grow over the forecast period, owing to the factors such as the high burden of chronic, ophthalmic, and other diseases, growing awareness regarding branded drugs among the population, and increasing company activities in developing drugs in the country. For instance, an article published by City, University of London, in May 2022 stated that glaucoma affects around 2% of people aged over 40 years and almost 10% of those over 75 years in the United Kingdom, leading to more than a million hospital visits every year.
In addition, as per the data published by the NHS United Kingdom, in August 2022, about 43,932 cataract procedures were performed in England in November 2021. As per the same source, the number of cataract surgeries is expected to increase by 50% by 2035 due to the increasing aging population and the high prevalence of the condition. Thus, the massive number of eye surgeries is expected to increase the demand for ophthalmic drugs and solutions, further propelling the demand for APIs for their formulation. This is anticipated to fuel the segment's growth over the forecast period.
The rising company activities in developing branded drugs and increasing product launches are also contributing to the market growth. In September 2022, United Kingdom NICE approved Pfizer's palbociclib (Ibrance) in combination with anti-cancer therapy, fulvestrant, to treat advanced breast cancer patients.
Moreover, the rising initiatives, such as expansion by key market players, are expected to increase the company's focus on developing high-quality APIs, which is anticipated to fuel the market growth over the forecast period. For instance, in July 2021, AbbVie expanded its global operations, enabling end-to-end drug substance and product supply for AbbVie CMO manufacturing partners. New AbbVie Contract Manufacturing service offerings include biologics fill-finish, topical creams and ointments, sterile ophthalmic ointments, and custom API. Also, the acquisition of Allergan and capital expenditure enable AbbVie CMO to provide expanded capabilities to clients on several European manufacturing fronts (including the United Kingdom).
Therefore, owing to the factors such as the high burden of eye diseases in the country, increasing branded product launches as well as a growing company focus on facility expansion to grow their API business, the studied segment is anticipated to witness growth over the forecast period.
