Market Trends of Germany Active Pharmaceutical Ingredients (API) Industry
This section covers the major market trends shaping the Germany Active Pharmaceutical Ingredients (API) Market according to our research experts:
Oncology Segment Expects to Register a High CAGR
The oncology segment is expected to witness significant growth in the Active Pharmaceutical Ingredients (API) industry in Germany over the forecast period. The factors attributing to the market growth are the rising burden of cancer cases among the population and increasing drug approvals.
Certain factors, such as increasing age, obesity, alcohol abuse, family history of cancer, history of radiation or chemical exposure, reproductive history (such as menarche age and the age of first pregnancy), viral infections (human papillomavirus (HPV)), tobacco use, postmenopausal hormone therapy, and others increase the risk of developing cancer. Rising cancer cases are expected to increase the need to develop effective and safe cancer drugs. This further increases the demand for APIs, such as abiraterone acetate, azacitidine, cabazitaxel, and cytarabine, used to manufacture oncology drugs.
The incidence and prevalence of various types of cancer are growing rapidly due to lifestyle changes. As per the GLOBOCAN 2020 factsheet, in Germany, breast and colorectum cancers were more prevalent in females, while prostate and lung cancers were more prevalent in men. Per the same source, about 69,697 new breast cancer cases were reported in Germany in 2020. This number is projected to reach 71,245 by 2040. Such increasing prevalence of cancer conditions among the German population has led to the rise in demand for cancer drugs, thereby contributing to the growth of the APIs market over the studied period.
Furthermore, the rising company activities and increasing drug approvals in the country are expected to boost market growth. For instance, in January 2021, AstraZeneca and Daiichi Sankyo Company received conditional approval in the European Union (EU) for Enhertu as a monotherapy for the treatment of adult patients with unresectable or metastatic HER2-positive breast cancer who have received two or more prior anti-HER2-based regimens.
Therefore, owing to the factors such as the high burden of cancer among the population and growing healthcare expenditure in the country, the studied segment is anticipated to witness growth 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 various factors, such as the high burden of chronic diseases, growing awareness regarding branded drugs, and increasing company activities in drug development. The statistics published by IDF stated that, in 2021, about 6.1 million people were suffering from diabetes in Germany. This number is projected to double by 2050. High blood sugar caused by diabetes can damage the nerves that control the heart and blood vessels, leading to various cardiovascular diseases. These diseases, such as coronary artery disease and stroke, can narrow the arteries and necessitate the administration of drugs, thereby propelling the growth of the API market.
Additionally, an article published in Neurological Research and Practice in March 2022 stated that 68.9% of German and 50% of international patients had advanced Parkinson's disease. Such a high number of patients diagnosed with the disease is expected to propel the demand for treatment therapies and drugs. This is anticipated to fuel the demand for APIs for drug development, driving the market's growth.
The rising branded drug development in the country is also expected to increase the demand for APIs. For instance, in August 2022, Janssen received conditional approval from EMA for its hemato-oncology drug Tecvalifor for treating multiple myeloma in Germany. In December 2021, the European Union authorized GlaxoSmithKline's Xevudy, a SARS-CoV-2 neutralizing monoclonal antibody, in Germany. Sotrovimab (trade name Xevudy), an additional COVID-19 treatment option, became available in Germany at the end of January 2022.
Similarly, in September 2021, Amarin Corp. launched Vazkepa (icosapent ethyl) in Germany to reduce the risk of cardiovascular events, such as heart attack, stroke, and other problems caused by blocked blood circulation in adults.
Moreover, the rising company activities in facility and business expansions, such as collaboration, partnerships, etc., are also contributing to the market growth. In August 2022, Evonik announced the development of a new cGMP facility in Hanau, Germany, to produce lipids for clinical development and launch innovative medicines. It provides customers with smaller batch sizes of lipids as needed for clinical development. The launch of the new facility further expands Evonik's integrated portfolio of System Solutions for advanced drug delivery of mRNA and nucleic acid therapies, including siRNA, oligonucleotides, and gene delivery. Also, the types of lipids produced at the kilogram scale in this facility will serve a broad range of mRNA and gene therapies, such as infectious disease control, cancer immunotherapy, protein replacement, and gene therapy.
Therefore, owing to the factors such as the high burden of diabetes and Parkinson's diseases, increasing product launches as well as rising company expansion activities, the studied segment is expected to grow over the forecast period.
