Small active pharmaceutical ingredients (API) molecule is an organic component with low molecular weight. It is an active ingredient used in pharmaceuticals and biological procedures. In addition, API can be used as a combination in finished pharmaceutical products. Being a vital element, its requirement is high in the pharmaceutical industry. The molecule is effective in the diagnosis, treatment, and prevention of various diseases. Small molecules may be used as research tools to probe biological function as well as lead in the development of new therapeutic agents. Some can obstruct a specific function of a protein or interrupt protein-protein interactions.

The molecular value of the small API is approximately 900 Daltons and size on the order of 1 nm. Due to its low molecular weight, the body absorbs this active solution quickly.

COVID-19 Impact analysis

Pharmaceutical and biotech companies together with governments around the globe are working to address the COVID-19 outbreak, from supporting the development of vaccines to planning for medicine supply chain challenges. Currently, around 115 vaccine candidates and 155 molecules are in the R&D pipeline. Moreover, commonly used drugs such as hydroxychloroquine have witnessed a dramatic surge in demand for the management of COVID-19. Such high demand for these drugs has presented huge opportunities for manufacturers of COVID-19 management drugs, as many developed countries are facing shortage of these drugs. Thus, the pharmaceutical and biotechnology industry is expected to witness a significant growth in the future, owing to the demand for vaccine and treatment drugs for COVID-19. This, in turn, is expected to have a significant impact on the small molecule API market.

Top Impacting Factors

• The rising prevalence of chronic diseases such as cardiovascular, cancer, and infectious diseases and the growing geriatric population are driving factors for the small molecule API market.
• Patent’s expiry of the top-selling pharmaceutical company is acting as a key driver of the global small molecule API market growth.
• Increasing awareness in the major worldwide population regarding the overall health and advantages of small molecule API is fueling the market growth.
• In addition to this, increasing technological developments in the manufacturing sector are fueling the growth of the global small molecule API market.
• However, several stringent regulations by the government regarding small molecule usage restrict the market growth.
• Conversely, increasing government funding and policies in the healthcare sector is expected to offer massive growth opportunities for this market.

Market Trends

New product launches to flourish the market

In March 2019, GHO Capital, a European healthcare investor, acquired a majority stake in Sterling Pharma Solutions, a manufacturer of small molecule APIs.

In January 2019, Cambrex Corporation, a manufacturer of small molecule innovator and generic APIs, acquired Avista Pharma Solutions, a contract manufacturing organization from Ampersand Capital Partners. The acquisition is expected to provide Cambrex the access to its manufacturing facilities.

In November 2019, Novartis announced the acquisition of CellforCure—a France-based CDMO—for producing molecules in-house, which was earlier contracted to CellforCure. These initiatives undertaken by key players are anticipated to boost the market growth.

In January 2020, Merck announced its strategic collaboration for the oncology platform with Taiho Pharmaceutical Co, Ltd. and Taiho Pharmaceutical Co., Ltd. to expand its focus on small molecule inhibitors for cancer research.

Key Benefits of the Report

• This study presents the analytical depiction of the small molecule API along with the current trends and future estimations to determine the imminent investment pockets.
• The report presents information related to key drivers, restraints, and opportunities along with detailed analysis of the small molecule API market share.
• The current market is quantitatively analyzed to highlight the small molecule API market growth scenario.
• Porter’s five forces analysis illustrates the potency of buyers & suppliers in the small molecule API market.
• The report provides a detailed market analysis depending on competitive intensity and how the competition will take shape in coming years

By Product

• Biological Procedures
• Chemical Process

By Type

• Contract
• Captive

By Application

• Ophthalmology
• Cardiovascular
• Metabolic
• Dermatology
• Respiratory
• Urology
• Others

By End User

• Hospitals
• Ambulatory Surgical Centers
• Others

By Region

• North America  (U.S., Canada, Mexico)
• Europe  (France, Germany, Italy, Spain, UK, Rest of Europe)
• Asia-Pacific  (China, Japan, India, South Korea, Australia, Rest of Asia-Pacific)
• LAMEA  (Brazil, South Africa, Saudi Arabia, Rest of LAMEA)

Key Market Players

BASF SE,
Cambrex Corporation,
AstraZeneca Plc.,
Teva Pharmaceutical Industries Ltd.,
Sun Pharmaceutical Industries Ltd.,
Baxter International Inc.,
Boehringer Ingelheim International GmbH,
Sanofi S.A.,
Celgene Corporation,
Pfizer, Inc.