Features

HPAPI Market Trends

Rising demand for targeted cancer and other treatments driving HPAPI growth.

By: Nigel Walker

Nice Insight / Thats Nice LLC

The percentage of new drug candidates that are highly potent is rising, driving the need for additional manufacturing capacity for highly potent compounds. However, producing these challenging molecules is a complex process. Specialized facilities, equipment and highly skilled personnel are required. Contract manufacturers with demonstrated success in the development and production of potent active pharmaceutical ingredients (APIs) are helping to meet this need.

What does highly potent mean?
There is no regulatory standard defining highly potent active pharmaceutical ingredients (HPAPIs). All highly potent compounds, however, have impacts at very low concentration. In general, APIs are considered to be potent if they are pharmacologically active and exhibit biologic activity at a level of 15 micrograms (μg) per kilogram of body weight or less in humans, or are efficacious at a therapeutic dose of 1 milligram (mg) or less per day.1 Another pharmaceutical industry definition identifies potent compounds as having occupational exposure limits (OELs) at or below 10 μg/m3 of air as an 8-hour time-weighted average.2 However, there is no specific consensus definition for a highly potent compound.

In addition, not all HPAPIs that are potent against diseased cells (e.g., tumor cells) are highly potent toward other cells.2 Furthermore, potency and toxicity are not equivalent. Highly potent compounds may be effective for cancer treatment at low doses but not toxic, while traditional chemotherapy agents are not very potent at low therapeutic doses but often cause toxic side effects.
It is thus essential to characterize the hazards posed by a compound, including any potential exposure problems, whether they are acute (e.g., somnolence, respiratory arrest, adrenergic or lachrymatory effects, allergenic responses, corrosivity, irritation.) or chronic (e.g., carcinogenicity, mutagenicity, clastogenicity, sensitization), as well as the possibility for developmental or reproductive effects or toxicity with repeated dosing.2 Critical effects of exposure must be identified and any dose–response relationships determined.

Once these attributes are understood, an OEL can be assigned and then used to conduct a risk assessment. Often, not all of this information is available at the start of a development project, and uncertainties must be considered. As a result, OEL values can vary significantly as a function of the risk assessor. A flexible approach is required to provide access to a wide range of possible practical solutions that are appropriate for the manufacturing site, will protect workers and the environment and can evolve as projects move through the development cycle and additional data is generated.2

Potent growth
Estimates for the size of the global HPAPI market vary, but most analysts agree that strong growth can be expected over the next 5–10 years.

Markets and Markets estimates that the global HPAPI market will expand at a compound annual growth rate (CAGR) of 8.7% from $17.72 billion in 2018 to $26.84 billion in 2023.3 Converged Markets, meanwhile, forecasts a CAGR of 9% from 2018 to 2025, with the value of the market reaching $20 billion by the end of the period.4 Transparency Market Research predicts that the global HPAPI market will grow at a CAGR of 8.3% to reach $25.11 billion by 2023.5 Finally, Grand View Research sees the global market expanding at a CAGR of 10.3%,6 reaching a value of $34.8 billion by 2025.7

Approximately 25% of new chemical entities are considered to be potent,1 which can largely be attributed to the fact that about one-third of all drug candidates are oncology treatments.2 The largest percentage of HPAPIs are used in the formation of anti-cancer drugs.3–7 Advances in manufacturing and containment technologies and investments by manufacturers are facilitating expansion of the market. Interest in targeted therapies with reduced side effects, most notably antibody–drug conjugates (ADCs), is another key driver of demand growth for HPAPIs.

Most HPAPIs are developed or manufactured for branded drugs, but growth in generic HPAPIs is increasing as existing products lose patent protection.3 The captive HPAPI segment is also larger than the merchant segment, but outsourcing is increasing and the latter segment is growing at a faster pace.3 Similarly, most HPAPIs are currently small molecules, but biologic potent compounds are growing at a higher CAGR.6 Geographically, North America (specifically the U.S.) accounts for the largest share of the HPAPI market today, although demand is growing fastest in Asia.5

In addition to cancer, HPAPIs are used in hormonal imbalance drugs and drugs intended for the treatment of glaucoma. They are also used in cardiovascular drugs, central nervous system drugs and musculoskeletal drugs.7

Targeted therapies
Traditional drugs are designed as systemic treatments. As such, they travel and can be absorbed throughout the human body. During this process, some of the drug is degraded and some interacts at undesired sites, leading to side effects. Newer targeted therapies, on the other hand, are designed to be delivered to the specific site of action where they interact only with the diseased or cancerous cells. As a result, less drug is needed and side effects are largely avoided.5,7

ADCs are a prime example. The cytotoxic payloads in ADCs are HPAPIs. ADCs leverage the specificity of antibodies for certain cells––usually cancer cells. Cytotoxic “payloads”––small-molecule drugs designed to destroy cancer cells––are attached (conjugated) to the antibodies with linker technology. Once the antibody is bound to the tumor, the linker degrades, releasing the payload into the tumor.

These attractive features are driving significant interest in ADCs, with most major and many small and mid-sized pharma companies pursuing development programs. According to Allied Market Research, the ADC market was valued at nearly $1.4 billion in 2016 and will grow at a CAGR of 12.9% from 2017 to 2023, reaching nearly $3.2 billion by the end of the period.8

Complex manufacturing
Manufacturing HPAPIs is not a simple matter. Producing ADCs, which requires conjugation of a small-molecule HPAPI to a large biomolecule, is even more daunting. The biggest challenges are preventing cross-contamination during manufacturing, protection of plant operators and the environment and protection of everyone across the supply chain that handles the final drug product.
Choosing the right containment and protection strategy, including facility design, containment equipment, procedures and personal protective equipment (PPE) can be particularly challenging.9 The solution should be appropriate for the potent compound, the site capabilities, operator skill level and the specific process involved.

It is equally important to avoid using excessive, unnecessary containment.10 When data is lacking, the tendency is to be conservative. However, if sufficient data is available for a risk assessment, the adequate level of controls can be determined. Implementation of unnecessarily high containment levels leads to greater costs and longer development timelines, neither of which can be afforded in today’s highly competitive market.

Correct installation and setup, as well as appropriate employee training, are essential for ensuring worker protection. Ongoing OEL monitoring of all process stages is important. Proper management of waste streams containing HPAPIs is critical, as is maintenance of containment and processing systems. Manufacturers must also have relevant methods for sampling and testing that minimize the API quantity needed.1 An understanding of regulatory requirements, including those regarding prevention of cross-contamination, is also essential.

Outsourcing support
The complexity of the facilities, equipment and processes and the high levels of operator training required to safely implement HPAPI manufacturing are significant barriers to entry for many pharmaceutical companies. Initial and ongoing investment is high. Many large drug makers have installed internal HPAPI manufacturing capabilities, though most small and medium-sized companies do not have the resources to do so.11 In addition, some larger pharma companies have only invested in commercial-scale production systems, preferring to rely on contract service providers in earlier development stages.11 In addition, some firms that have HPAPI capacity are closing or divesting their facilities in favor of outsourcing.7

As a result, while in-house HPAPI manufacturing currently accounts for the largest share of the market, outsourcing is increasing rapidly.7 Outsourcing allows larger drug makers to focus on drug discovery and product launches, life cycle management and other activities. In addition, it can provide cost savings. Outsourcing is also often a risk-mitigation strategy.1 For smaller firms, use of contract manufacturing services enables access to the specialized technologies needed for HPAPI production.

Choosing the right CDMO
While outsourcing of HPAPI production provides many advantages, the benefits can only be realized if the contract development and manufacturing organization (CDMO) selected as an outsourcing partner has the right qualifications.

Any CDMO considered as an HPAPI production partner should have experience in the field and a long track record of successfully manufacturing and handling highly potent compounds.12 There should be clear evidence of regulatory expertise and a positive compliance history.1 Facilities should be designed specifically for the production of HPAPIs with containment strategies based primarily on engineering controls and administrative solutions (processes and PPE) as secondary measures.12 An extensive operator training program is also essential. The ability to support projects from development through commercialization and extensive analytical capabilities are also important, as is proper control and containment of waste. All of these factors are indicators of long-term commitment to HPAPI production. 

References
1. David O’Connell, “High Potency Drugs – from Molecule to Market,” White Paper. http://www.samedanltd.com/uploads/pdf/white_paper/9908ae04a14145d662675ac2eb0e0e5c.pdf.
2. Cambrex, “Highly Potent APIs – Markets, Myths and Manufacturing,” Webinar Overview, November 2017. https://www.cambrex.com/wp-content/uploads/100642_Cambrex_webinar_writeup_S1.pdf.
3. Markets and Markets, “High Potency APIs /HPAPI Market worth 26.84 Billion USD by 2023,” Press Release, April 2018. https://www.marketsandmarkets.com/PressReleases/high-potency-api.asp.
4. Converged Markets, “High Potency Active Pharmaceutical Ingredients Market by Type (Innovative HPAPI, Generic HPAPI), Synthesis (Synthetic HPAPI, Biotech HPAPI), Therapeutic Application (Oncology, Hormonal Imbalance, Glaucoma) and Region – Global Analysis and Forecast to 2025,” 2018. https://convergedmarkets.com/high-potency-active-pharmaceutical-ingredients-market-by-type-innovative-hpapi-generic-hpapi-synthesis-synthetic-hpapi-biotech-hpapi-therapeutic-application-oncology-hormonal-imbalance-glau.
5. Transparency Market Research, “Global High Potency Active Pharmaceutical Ingredient (HPAPI) Market: Rising Incidence of Cancer to Boost the Market, says TMR,” August 2017. https://www.transparencymarketresearch.com/pressrelease/high-potency-active-pharmaceutical-ingredients-market.htm.
6. Grand View Research, “High Potency Active Pharmaceutical Ingredients (APIs) Market Analysis By Product (Synthetic, Biotech), Manufacturer (In-house, Outsourced), Drug Type, Therapeutic Application (Oncology, Hormonal, Glaucoma, Others), And Segment Forecasts, 2018 – 2025,” July 2017. https://www.grandviewresearch.com/industry-analysis/high-potency-active-pharmaceutical-ingredients-hpapi-market.
7. Grand View Research, “High Potency API/HPAPI Market Size Worth $34.8 Billion By 2025,” Press Release, July 2017. https://www.grandviewresearch.com/press-release/global-high-potency-active-pharmaceutical-ingredients-hpapi-market.
8. Allied Market Research, “Antibody Drug Conjugates Market by Drugs (Adcetris and Kadcyla), Mechanism of Action (CD30 Antibodies and HER2 Antibodies), Application (Breast Cancer, Lymphoma, and Other Types of Cancer) – Global Opportunity Analysis and Industry Forecast 2017-2023.” September 2017. https://www.alliedmarketresearch.com/antibody-drug-caonjugate-market.
9. Mike Avraam, “Highly potent: Discussing the growing need for high potency handling capabilities,” European Pharmaceutical Manufacturing, September 27, 2017. https://www.epmmagazine.com/opinion/highly-potent-discussing-the-growing-need-for-high-potency-h/.
10. Cynthia A. Challener, “Managing Potentially Potent APIs,” Pharmaceutical Technology, Volume 41, Issue 10, pg 28–30, October 02, 2017. http://www.pharmtech.com/managing-potentially-potent-apis.
11. Catherine Hanley, “Have a Highly Potent API? Here’s What You Need to Consider,” September 27, 2017. https://www.alcaminow.com/blog/what-you-need-to-consider-for-hpapis.
12. Brian James, “Choosing The Right Partner For High Potency API Manufacturing,” Outsource Pharma. March 27. 2018. https://www.outsourcedpharma.com/doc/choosing-the-right-partner-for-high-potency-api-manufacturing-0001.
13. Contract Pharma Editors, “Fermion Invests €30M in API Facility Expansion,” Contract Pharma, May 19, 2016. http://www.contractpharma.com/contents/view_breaking-news/2016-05-19/fermion-invests-30m-in-api-facility-expansion/9778.
14. Fermion, “The new manufacturing unit 4 at Fermion’s Hanko site has started operation,” Press Release, July 2018. https://www.fermion.fi/about-us/news/the-new-manufacturing-unit-4-at-fermions-hanko-site-has-started-operation/.
15. Cambrex, “Cambrex Invests $24 Million in New Highly Potent API Manufacturing Capacity at its Charles City, Iowa Facility,” Press Release, August 8, 2017. https://www.cambrex.com/cambrex-invests-24-million-new-highly-potent-api-manufacturing-capacity-charles-city-iowa-facility/.
16. Catherine Hanley,” Alcami to Establish Active Pharmaceutical Ingredient Center of Excellence in Germantown, Wisconsin,” Press Release, September 06, 2017. https://www.alcaminow.com/blog/alcami-to-establish-active-pharmaceutical-ingredient-center-of-excellence-in-germantown-wisconsin.
17. Paul Mattheneus, “CDMO Minakem’s new Belgium HPAPI facility in final qualifications ahead of opening,” FiercePharma, June 20, 2018. https://mattheneus-healthcare.com/2018/06/20/cdmo-minakems-new-belgium-hpapi-facility-in-final-qualifications-ahead-of-opening/.

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