Bumpas, JanetBetsch, Ekkehard2013-05-302013-05-302009-09https://hdl.handle.net/10986/13682Active Pharmaceutical Ingredients (API) of good quality is core to the manufacturing of effective and safe essential drugs. The price of APIs is the main cost driver for manufacturing. Only a limited number of large manufacturers of finished pharmaceutical products have their own API manufacturing capabilities, and none of them can make all required APIs in-house. The majority of manufacturers, including all those located in Sub-Saharan Africa (with the exception of one company in South Africa) have to buy all APIs in the open market. The paper tries to make the structures of the API market more transparent, trying to determine how difficult it is for small manufacturers in developing countries to navigate the global API market and ensure that they get a quality product at a fair price. It also looks into the competitiveness of the market, trying to assess the risk that manufacturers or traders monopolize parts of the API market for essential medicines with low commercial attractiveness. The author confirms the initial assumption that the API market provides a challenge in particular to small manufacturers, who have limited means to verify the quality of the APIs they are buying. One potential way to address this problem would be to broaden the World Health Organization (WHO) prequalification system to include APIs for drugs that are on the WHO model list for essential medicines.en-USCC BY 3.0 IGOACTIVE INGREDIENTSACTIVITIESADVERTISINGANALGESICSANTIBIOTICSANTIMALARIALSAUDITSBARRIER TO ENTRYBARRIERS TO ENTRYBIDBRANDBRANDSBROKERSBUDGETCAPACITY BUILDINGCAPITAL BASESCAPITAL INVESTMENTCAPITAL REQUIREMENTCAPITAL REQUIREMENTSCAPSULESCERTIFICATIONCHECKSCHILDRENCHLOROQUINE RESISTANCECHRONIC DISEASESCOMMERCIAL MARKETSCOMMODITIESCOMMON MARKETCOMPANIESCOMPANYCOMPETITIONCOMPETITIVE MARKETSCOMPETITIVENESSCOMPETITORSCONTAMINATIONCONTESTABILITYCONTRACTCONTRACTSCORPORATIONCOUNTRY RISKCOURSE OF THERAPYCURRENCYDEMANDDEMAND FORECASTINGDEPRECIATIONDERIVATIVESDEVELOPING COUNTRIESDEVELOPING COUNTRYDIFFERENTIAL PRICINGDIRECT COSTSDOMINANT FIRMSDONORDONOR FINANCINGDONORSDRUG EVALUATIONDRUG MARKETSDUE DILIGENCEEFFICIENT MARKETENTERPRISEEQUIPMENTESSENTIAL DRUGSEXCHANGEEXCHANGE RATESEXPANSIONEXPORT MARKETSEXPORTERSFAIRFAIR PRICEFINANCINGFINISHED PRODUCTFIRMFIRMSFOREIGN CURRENCYFUTUREGENERIC DRUGSGLOBAL ECONOMYGLOBAL MARKETGMPGOODGOOD MANUFACTURING PRACTICESGOODSGRANTHEALTH CAREHUMAN DEVELOPMENTIMMUNIZATIONINTELLECTUAL PROPERTYINTELLECTUAL PROPERTY RIGHTSINTERFERONINTERNATIONAL BANKINTERNATIONAL COMMERCEINTERNATIONAL FINANCEINTERNATIONAL MARKETINTERNATIONAL STANDARDSINVESTINGINVESTMENTISONIAZIDLABORATORIESLACK OF TRANSPARENCYLAWSLEGAL COUNSELLOCAL GOVERNMENTLOCAL MANUFACTURERSLOCAL MARKETMANUFACTURERMANUFACTURERSMARKETMARKET ECONOMYMARKET ENTRYMARKET INFORMATIONMARKET PRICEMARKET PRICESMARKET SEGMENTMARKET SHAREMARKET SHARESMARKET SIZEMARKET STRUCTURESMARKET TRANSPARENCYMARKETINGMARKETPLACEMARKETSMEDICINEMNCMONITORINGMULTINATIONALMULTINATIONAL CORPORATIONOIL PRICESOPEN MARKETOPTIONOPTIONSPACKAGINGPARTIESPARTNERPARTNERSPAYMENT TERMSPHARMACEUTICALPHARMACEUTICAL INDUSTRYPHARMACEUTICAL INSPECTIONPHARMACEUTICAL MANUFACTURERSPHARMACEUTICAL MANUFACTURINGPHARMACEUTICAL PRODUCTIONPHARMACEUTICAL PRODUCTSPHARMACEUTICAL SECTORPHARMACEUTICAL TECHNOLOGYPHARMACEUTICALSPHARMACYPLANNINGPLEDGESPOOLED PROCUREMENTPORTFOLIOPORTFOLIO MANAGEMENTPREDATORY PRICINGPREPAYMENTPRICEPRICE COMPETITIONPRICE QUOTATIONSPRICE VOLATILITYPRICESPRICINGPRICING SCHEMESPROCUREMENTPRODUCTPRODUCT QUALITYPRODUCTSPROFITPROFIT MARGINPROFIT MARGINSPUBLIC HEALTHPURCHASINGQUALITY ASSURANCEQUININEREGULATORY AUTHORITIESREGULATORY AUTHORITYREGULATORY CAPACITYREGULATORY STANDARDSRETURNREVENUESSALESSECURITYSEESTATE OWNED ENTERPRISESSTORESUPPLIERSUPPLIERSSUPPLYSUPPLY CHAINSUPPLY CHAIN MANAGEMENTTABLETSTARGET MARKETTECHNICAL ASSISTANCETECHNICAL SUPPORTTENDERINGTRADINGTRANSACTIONTRANSACTION COSTSTRANSACTIONSTRANSFER PRICEVACCINESVALUEWORKING CAPITALWORLD MARKETWorld Bank10.1596/13682