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Pharmaceutical Manufacturing and Packing Sourcer

Made in Europe

When looking back at the news concerning active pharmaceutical ingredient (API) production and outsourcing published in the past seven years, it seems almost all market analysts were certain about one thing: a massive outflow of API activity to China and India. Some articles forecast an almost certain doom for Western manufacturers. In addition, second wave emerging markets like Brazil and Russia have also been mentioned as future additions to the API family, with the potential of taking over some of the established European production. On the other hand, a few reports focused on companies returning to Europe due to allegedly deteriorating quality and reliability of Indian and Chinese organisations. The market has been in flux, but it looks as if most members of that huge network have found a way to not only survive, but to grow or even thrive.

China and India have become dominant players in the global API market and their position is expected to grow. Businesses in these two countries are well aware of their strength and endeavour to take full advantage of it when it comes to their own markets as well as those overseas. The mixture of low wages for basic workers, sixday working weeks and many Americanand European-educated analysts with foreign experience are just some of the reasons as to why India has been playing such an important role in the business. For a lot of European companies, closing new deals with such competition in generic APIs is almost impossible.

Barter for a Deal

In many negotiations concerning API manufacturing, what the producers have to face on a daily basis is an arbitration centring on how close they can get to the price that has been offered to the customer by an Eastern firm. In the past, for APIs which were not produced by big pharmaceutical companies themselves, it was much easier to convince clients that those originating from Europe were meeting the highest possible standards, manufactured close to them and would be delivered in time. Those outsourcing often found this comforting as it usually meant that the facility was therefore in a convenient inspection range.

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Jiri Raska is the Commercial Director of Farmak, a traditional European generic API manufacturer in the Czech Republic. He has over 12 years of experience in the pharma industry and has been responsible for quality control, project management and business development. Jiri’s current duties cover sales and the marketing of niche APIs to several countries around the world.
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