Active Pharmaceutical Ingredients (API) manufacturing

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Active Pharmaceutical Ingredients (API) manufacturing
SectorMost major industry classification systems use sources of revenue as their basis for classifying companies into specific sectors, subsectors and industries. In order to group like companies based on their sustainability-related risks and opportunities, SASB created the Sustainable Industry Classification System® (SICS®) and the classification of sectors, subsectors and industries in the SDG Investor Platform is based on SICS.
Health Care
Biotechnology and Pharmaceuticals
Business Model Description

Manufacturing of APIs for affordable drugs for high-burden disease categories, such as Cardiovascular diseases, Diabetes and Tuberculosis and drugs included under the National List of Essential Medicines (NLEM) to improve drug procurement and the relevant supply chain.

Expected Impact

Improve access to affordable drugs for high burden disease categories and reduce dependence on imports by increasing domestic manufacturing of APIs.

Indicative ReturnDescribes the rate of growth an investment is expected to generate within the IOA. The indicative return is identified for the IOA by establishing its Internal Rate of Return (IRR), Return of Investment (ROI) or Gross Profit Margin (GPM).
15% - 20% (in ROI)
Investment TimeframeDescribes the time period in which the IOA will pay-back the invested resources. The estimate is based on asset expected lifetime as the IOA will start generating accumulated positive cash-flows.
Medium Term (5–10 years)
Market SizeDescribes the value of potential addressable market of the IOA. The market size is identified for the IOA by establishing the value in USD, identifying the Compound Annual Growth Rate (CAGR) or providing a numeric unit critical to the IOA.
> USD 1 billion
Average Ticket Size (USD)Describes the USD amount for a typical investment required in the IOA.
For the healthcare sector, data from Praxis Global Alliance, 2019 shows that early stage investments stood at USD 41 million, growth stage investments stood at USD 359 million and late stage investments stood at USD 1,486 million. (7.7)
Direct ImpactDescribes the primary SDG(s) the IOA addresses.
Good health and well-being (SDG 3)
Indirect ImpactDescribes the secondary SDG(s) the IOA addresses.
No Poverty (SDG 1) Decent Work and Economic Growth (SDG 8) Industry, Innovation and Infrastructure (SDG 9) Reduced Inequalities (SDG 10) Sustainable Cities and Communities (SDG 11)
Sector Sources
  • (2.1) https://www.thelancet.com/journals/lancet/article/PIIS0140-6736(18)30994-2/fulltext#seccestitle190 (2.2) https://niti.gov.in/sites/default/files/2019-12/SDG-India-Index-2.0_27-Dec.pdf (2.3) https://in.one.un.org/page/sustainable-development-goals/sdg-3-2/ (2.4) https://data.worldbank.org/indicator/SH.MED.PHYS.ZS (2.5) https://data.worldbank.org/indicator/SH.XPD.GHED.GE.ZS?view=chart (2.6) https://www.financialexpress.com/economy/india-spending-more-on-healthcare-now-but-yet-not-as-much-as-others-heres-how-much-us-china-spend/1922253/ (2.7) https://data.worldbank.org/indicator/SH.XPD.OOPC.CH.ZS (2.8) https://www.irdai.gov.in/ADMINCMS/cms/whatsNew_Layout.aspx?page=PageNo3729&flag=1 (2.9) https://bmjopen.bmj.com/content/8/5/e018020#DC1 (2.10) https://www.indiaoppi.com/wp-content/uploads/2019/12/Report-on-healthcare-access-initiatives-For-web.pdf (2.11) https://www.nhp.gov.in/nhpfiles/national_health_policy_2017.pdf (2.12) Stakeholder Consultations (2.13) https://www.ibef.org/industry/healthcare-india.aspx
IOA Sources
  • (7.1) https://niti.gov.in/writereaddata/files/Strategy_for_New_India.pdf (7.2) https://www.mycii.in/KmResourceApplication/65765.IndianAPIIndustryReachingthefullporentialCIIKPMGreport2020.pdf (7.3) https://www.advamed.org/sites/default/files/resource/medical_industry_in_india_-_the_evolving_landscape_oppurtunities_and_challenges_white_paper.pdf (7.4) https://www.investindia.gov.in/sector/pharmaceuticals (7.5) https://niti.gov.in/sites/default/files/2019-12/SDG-India-Index-2.0_27-Dec.pdf (7.6) https://www.business-standard.com/article/companies/this-pharma-hub-gets-back-on-its-feet-after-relief-in-locked-down-india-120042600948_1.html (7.7) https://www.praxisga.com/press-releases/praxis-global-alliance/praxis-global-alliance-recent-report-healthcare-investor-sentiment-spotlight-2019-uncovers-investor-outlook-and-value-creation-opportunities-in-india (7.8) https://health.economictimes.indiatimes.com/news/pharma/chryscap-exits-mankind-pharma-with-10-fold-gain-offloads-stake-to-capital/47453148 (7.9) https://www.hdfcsec.com/hsl.docs//HSL-Thematic-Pharma-Stock-Picks-280520-202005281521532768561.pdf (7.10) http://www.sequent.in/pdf/presentations/SSL_IR_deck.pdf (7.11) https://economictimes.indiatimes.com/markets/expert-view/pick-pharma-stocks-that-have-strong-domestic-businesses-aditya-khemka/articleshow/75181511.cms (7.12) Stakeholder consultations (7.13) S&P Capital IQ data (7.14) https://www.fiercepharma.com/manufacturing/india-pharma-manufacturing-hub-back-up-and-