Cohance Lifesciences Ltd.

Eisai's updated Leqembi projections, layoffs at Sumitomo Pharma, and Kyowa Kirin's manufacturing expansion made our news this week. In separate updates from Japanese drugmakers, Eisai presented new projections for its Biogen-partnered Alzheimer's disease med Leqmebi, while Sumitomo Pharma initiated a round of layoffs in the U.S. Meanwhile, Kyowa Kirin is investing $200 million to build a new biologics facility in North Carolina. Plus more. 1. Despite Leqembi's launch pains, Eisai projects Alzheimer's med will reach $8.8B in the long run Eisai expects its Biogen-partnered Alzheimer’s disease drug Leqembi to reach 1.3 trillion yen ($8.8 billion) in sales in its fiscal year 2032. By that time, the number of patients eligible for the treatment should increase to 3.32 million, compared to less than 400,000 in 2026. To help overcome some initial launch hurdles, Eisai aims to boost its neurology field force by about 30% later this year. 2. Sumitomo Pharma, suffering from sliding sales, lays off another 400 US staffers Sumitomo Pharma is laying off 400 staffers in the U.S. The job cuts come after the Japanese company failed to meet certain targets in its five-year business plan. The company’s revenue during the nine months ended in December dropped nearly 50% compared with the same period in 2022. The decline was chalked up in part to the U.S. loss of exclusivity for its antipsychotic Latuda. 3. Kyowa Kirin plans $200M plant in North Carolina, where it'll hire 100-plus new employees Another Japanese company, Kyowa Kirin, is expanding its U.S. footprint with a $200 million investment to build a biologics manufacturing facility in Sanford, North Carolina. The location is set to be in the Helix Innovation Park, and the company plans to enlist 102 new staffers, according to a release from the state. 4. Senate committee advances bill targeting Chinese biotech firms (Reuters) The U.S. Senate’s homeland security committee voted 11-1 to move forward a draft bill that seeks to ban certain Chinese biotech companies from receiving federal contracts. The bill, previously known as the Biosecure Act, specifically names WuXi AppTec and the BGI Group among Chinese firms that pose national security risks to the U.S. It’s not clear when the bill will be brought to the Senate floor for a full vote. 5. Eisai to drop up to $15M on C2N Diagnostics to boost the reach of Alzheimer's disease blood tests Amid a slow launch of Leqembi, Eisai is investing in diagnostics for the disease. The Japanese pharma has pledged up to $15 million for C2N Diagnostics, which develops Alzheimer’s tests by detecting the tau and beta-amyloid proteins in the blood. The goal is to support broad access of Alzheimer’s treatment by offering more affordable diagnostic tools in the future. 6. UCB ups the ante with CDMO Samsung Biologics, signing $288M deal UCB has expanded its drug substance manufacturing contract with Samsung Biologics to include a third product. The deal, worth 382 billion Korean won ($288 million), will see Samsung produce for UCB an anti-tau candidate for progressive supranuclear palsy, which is in early-stage testing. The new agreement allows Samsung Biologics to showcase its “Plant 3,” CEO Tae Han Kim said. Other News of Note: 7. After multiple wrist-slaps, Aurobindo unit Eugia receives another manufacturing write-up 8. Advent-owned Indian CDMOs Suven Pharma, Cohance Lifesciences plan merger 9. Fast Tracks end STING deal with Japan’s Carna as the US biotech dissolves (SEC filing)

India-based CDMOs Suven Pharmaceuticals and Cohance Lifesciences plan to merge through a stock swap. As part of an effort to ramp up its manufacturing footprint, Suven Pharmaceuticals plans to merge (PDF) with fellow India-based CDMO Cohance Lifesciences. Cohance is privately held by the Boston-based private equity firm Advent International, which completed a deal (PDF) last September that gave it a majority stake in Suven. Pending regulatory approvals, the Suven-Cohance merger is expected to close in the next 12 to 15 months. When combined, the firm will offer services in contract drug production, specialty chemicals and API manufacturing, Suven said in a release. Suven operates five facilities in India, according to its website. The company generated around $165 million in revenues during its most recent fiscal year. Cohance, for its part, appears to be operating at a similar scale. The company manages 7 manufacturing sites and pulls down around $154 million annually, according to its website. Cohance employs 2,100 people while Suven's workforce numbers around 1,160. Although a deal value wasn’t disclosed, the agreement calls for Cohance shareholders to receive 11 Suven shares for every 295 shares of Cohance. “This is a transformative step in Suven’s journey of growth and building a respected integrated CDMO player,”  Annaswamy Vaidheesh, Suven’s executive chairman, said in the release. “We are extremely excited about the benefits of combined scale, capabilities, complementary customer base and best practices that will further help enhance our leadership position in India and globally.”

As per Precedence Research, the active pharmaceutical ingredients market size is predicted to hit around USD 363.68 billion by 2032, and it is expanding at a CAGR of 6.1% from 2023 to 2032. Market overview: Active pharmaceuticals ingredients are biologically active components within pharmaceutical drugs that produce therapeutic effect as per the requirement. They are the essential molecules responsible for the drug’s pharmalogical activity. Active pharmaceutical ingredients are typically synthesized through chemical processes or obtained from natural sources. These active pharmaceutical ingredients are further combined with other inactive ingredients, known as excipients, to create the final medication in the form of tablets, capsules and injections. The global active pharmaceutical ingredients market is responsible for research, development and manufacturing of these compounds, which are later used for treating various medical conditions. Get the Sample Report Pages@ The active pharmaceutical ingredients market is accelerating at a robust pace due to multiple factors, such as increasing prevalence of diseases, advancement in drug development and rising demand for innovative and novel therapies. Medical conditions such as neurological disorders, cardiovascular diseases, gastrointestinal disorders and cancer are mainly being targeted by the players in the active pharmaceutical ingredients market owing to their rising prevalence across the globe. Regional snapshot: North America dominated the active pharmaceutical ingredients market in 2022, the region is expected to sustain its position throughout the forecast period. The region’s well-established pharmaceutical industry is the major factor to support the market’s expansion in North America. Nations like the United States and Canada hold substantial development capabilities along with a robust regulatory framework. Thus, both countries are observed to sustain as largest contributors to the market in North America. In addition, North America’s extensive healthcare infrastructure and large consumer base contribute to its leadership in API production and innovation. Asia Pacific is the fastest growing region in the global active pharmaceutical ingredients market. Factors such as availability of skilled workforce, favorable regulatory environments, increasing healthcare demand and growing pharmaceutical industry in the region are contributing to the growth of the market in Asia Pacific. Nations including Japan, China, India and South Korea have potential to develop a strong pharmaceutical infrastructure in the upcoming years. This factor promotes the region’s growth. Considering Japan’s position in the market, the country expertise in technology, high-quality standards and has a substantial government support, these factors play significant role in the market’s expansion in Japan. Europe has an attractive marketplace for active pharmaceutical ingredients the region has been growing in the market owing to the advanced research and development capabilities, a strong regulatory environment, high-quality manufacturing standards and presence of professionals in the field. Additionally, the proximity to a well-established pharmaceutical industry and access to innovative technologies contribute to their competitive edge in the global active pharmaceutical ingredients market. Latin America is another notably growing region in the active pharmaceutical ingredients market. The region’s expanding population, increasing prevalence of chronic diseases and improving healthcare expenditures create a strong base for the market’s expansion. Many Latin American countries are indulged in making efforts to strengthen pharmaceutical manufacturing capabilities. Governments are also investing in regulatory and infrastructure improvements to attract foreign investors. This element acts as a growth factor for the market’s growth in Latin America. Download Full Report Study@ Region CAGR (%) North America 6.1% Europe 5.8% Asia Pacific 6.3% LAMEA 5.3% Report Highlights: By type of synthesis, the synthetic segment dominated the market in 2022, the segment will continue to grow at a notable rate during the forecast period. The scalability and cost effectiveness offered by synthetic synthesis promotes the growth of the segment. Additionally, it is easier to standardize and control the chemical structure of synthetic APIs, this factor also supports the segment’s leading position in the market. By type of manufacturer, the captive API had a significant share of the market in 2022, the segment’s growth can be attributed to the reliability factor associated with the captive APIs. Captive production provides better supply chain control, reducing the risk of shortages or disruptions caused by external factors. Moreover, with captive APIs manufacturers have greater control over the manufacturing process, ensuring high-quality of product. By type, the innovative API accounted for the largest revenue share in 2022, the segment is expected to sustain its position during the forecast period. Innovative APIs often offer reduced side effects and improved outcomes. This element acts as a growth factor for the segment. By type of drug, the over-the-counter drug segment is expected to grow at a considerable rate during the forecast period. The rising demand for drugs that treat general medical conditions such as allergies, cold symptoms and body pain, contributes to the segment’s growth. Moreover, regulatory processes are usually less stringent for over-the-counter drugs as compared to the prescribed ones. By application, the oncology segment is expected to witness the fastest rate of growth during the forecast period. The ongoing advancements in precision medicine and targeted therapies for cancer contribute to the segment’s expansion. Ask here for customization@ Market dynamics: Driver: Patent expiration Patent expiration in the pharmaceutical industry refers to the point in time when a grant for a medicine, therapeutics or drug comes to an end. Once the patent expires, other companies are legally allowed to produce generic versions of the drug, considering the same active pharmaceutical ingredient formulation. Patent expiration in the pharmaceutical industry allows generic drug manufacturers to produce and sell medications with the same active pharmaceutical ingredients as the original brand-name drugs. This increased competition usually leads to increased demand for active pharmaceutical ingredients in the pharmaceutical industry. The market is experiencing growth as generic manufacturers seek to produce and market their new versions of the formerly patented drugs. This element also stimulates innovation in drug formulations and delivery methods to maintain a competitive edge. Thus, patent expiration in the global pharmaceutical industry is observed to act as a driver for the market. Restraint: Supply chain disruptions Supply chain disruptions have been observed as a major hampering factor for the growth of active pharmaceutical ingredients market. These disruptions are often triggered by events such as geopolitical concerns, regulatory changes, natural and unforeseen disasters and vulnerabilities in the global market. As active pharmaceutical ingredients are the essential components of pharmaceutical products, any interruption caused in the supply chain creates shortages, price fluctuations and mainly, delayed product manufacturing. Such disruptions disrupt the delicate balance of demand and supply in the market by affecting the global pharmaceutical industry. Companies heavily rely on suppliers in their respective country or region, supply chain disruptions can directly harm this dependency. Thus, supply chain disruptions act as a major restraint for the market. To address this restraint, regulatory agencies are urging industry to adopt more reliable supply chain practices. Opportunity: Improving regulatory framework An improved regulatory framework offers definite opportunities for the global active pharmaceutical ingredients market. The improvisation in the regulatory framework fosters safety, quality and innovation. A robust regulatory environment aims to ensure adherence to stringent quality standards, thereby bolstering consumer confidence in active pharmaceutical ingredient-based products. Stricter regulations create a boundary that favors reliable manufacturers and reduces the prevalence of substandard products. Moreover, a well-defined regulatory framework encourages research and development investments, leading to the certain creation of innovative and more effective active pharmaceutical ingredients. Manufacturers are motivated to improve their production processes, leading to cost efficiencies and increased competitiveness. Improved regulatory framework offers multiple opportunities for the market’s expansion by bolstering investor’s confidence with transparent regulations that ensure the reduction of uncertainties in the market. Several governments and organizations are focused on improving the overall framework of regulations in the pharmaceutical industry to conduct more research and development activities. Thus, the element is observed to create opportunity for the market. Challenge: Regulatory hurdles The hurdles in achieving proper regulatory approvals often lead to extended timelines and increased costs, impacting the overall competitiveness of the active pharmaceutical ingredients market. Changes in regulations, varying from region to region, require companies to continuously adapt their manufacturing processes, further straining resources, additionally, safety and quality standards must be met at all stages, from sourcing raw materials to final product distribution, necessitating rigorous testing and monitoring procedures. Thus, such regulatory hurdles are observed to pose a challenge for the market’s growth. To address such hurdles, streamlining approval processes is observed to be a major solution. Recent developments in the active pharmaceutical ingredients market: In May 2023, a Contract, Research, Development and Manufacturing Organization (CRDMO), SynCrest Inc announced the launch of its services for research institutions and pharmaceutical companies in South America, North America, Europe and Japna for Asia part. Under the services, SynCrest aims to offer peptide-based therapeutics for drug discovery purposes. The company also aims to utilize its advanced continuous flow synthesis where the company can produce active pharmaceutical ingredients. In November 2022, Advent International announced the launch of a new brand identity for its Contract Development and Manufacturing Organization (CDMO) and Active Pharmaceutical Ingredients (API) platform, Cohance Lifesciences. The new brand identity, Cohance Lifesciences aims to establish a fresh vision and operating philosophy for API and CDMO platform. Advent International’s three companies, ZCL Chemicals, RA Chem Pharma and Avra Laboratories are comprised into the new brand identity. Market segmentation By Type of Synthesis Biotech Monoclonal Antibodies Recombinant Proteins Vaccines Synthetic By Type of Manufacturer Captive APIs Merchant APIs Generic APIs Innovative APIs By Type Generic APIs Innovative APIs By Type of Drug Prescription Drugs Over-the-counter Drugs By Application Cardiovascular Diseases Oncology CNS & Neurological Disorders Orthopedic Disorders Endocrinology Pulmonology Gastrointestinal Disorders Nephrology Ophthalmology Others By Regional Outlook North America U.S. Canada Europe U.K. Germany France Asia Pacific China India Japan South Korea Middle East & Africa Latin America Immediate Delivery Available | Download Full Study@ You can place an order or ask any questions, please feel free to contact at sales@precedenceresearch.com | +1 9197 992 333 Blog: Blog: