Prices strongly decrease with annual purchase volumes

Levofloxacin shows how volume shapes both price levels and price spread (Figure 2). Small-volume buyers with purchase volumes below 100 kg pay an average of 120 USD/kg – about 135% above the average market price of 51 USD/kg – with some companies paying more than 500 USD/kg, which is over 10 times the average. At medium volumes (100-500kg), the average price drops to 70 USD/kg – still roughly 37% above the market average, while large-volume buyers (> 500 kg) achieve an average prices of 55 USD/kg, which is close to the average market price of 51 USD/kg.

The same pattern is evident in a representative subset of over 150 APIs analyzed on the QYOBO platform (Figure 3), drawn from the broader group of 1,200 APIs. Small-volume buyers face a wide price range, with some paying up to twelve times the market average. This broad spread suggests substantial potential for price optimization in this segment. Because most companies purchase relatively small volumes, this variability represents the reality of the market for the majority of buyers.

As annual purchase volumes increase, prices converge around the average, and the spread narrows noticeably. The smaller number of high-volume transactions indicates that these purchases are concentrated among a few larger players who benefit from scale advantages.

Companies in WRM tend to purchase higher annual volumes than those in non-/ or less regulated regions (ROW), and larger volumes in WRM often come at lower prices compared to similar volumes in ROW (Figure 5). For smaller volumes, however, prices in WRM are typically higher. While price dispersion exists in both market groups, some companies in non-regulated markets pay exceptionally high prices up to 350% above the average, compared to a peak of around 250% in WRM, underscoring once more the importance of market price transparency in achieving competitive terms.

Intermediate and API prices can decouple (temporarily)

The QYOBO platform links APIs with their key intermediates, allowing users to trace price movements along the value chain. As shown in Figure 6, both Ibuprofen and its intermediate, Isobutylbenzene (IBB), followed a downward price trend between Q3 2023 and Q3 2024, reflecting overall cost easing in the supply chain, but also demonstrating how prices can decouple between the API and its intermediate when price decreases are not immediately passed on.

Ibuprofen imports into the U.S. peaked in Q4 2024, primarily driven by suppliers in China and India and likely influenced by tariff-related concerns, before dropping to a historic low by mid-2025 (Figure 7). During this period, Ibuprofen experienced a temporary price spike, while Isobutylbenzene prices continued to decline (Figure 6).

Pharmacopeial standards set different price baselines

Pharmacopeial standards are legally recognized reference documents for pharmaceutical ingredients, issued by regulatory bodies such as the Japanese Pharmacopoeia (JP), European Pharmacopoeia (EP), United States Pharmacopeia (USP), and Indian Pharmacopoeia (IP). Differences in quality, testing, and control requirements, as well as market adoption and manufacturing scale, influence API pricing. 

To illustrate how these frameworks impact cost structures, QYOBO analyzed a smaller sample of 12 APIs with abundant data across the four major compendia – JP, EP, USP, and IP – comparing their average market price levels (Figure 2):

• JP: On average, +87% above the global market price across all 12 substances (ranging from +9% for Tacrolimus to +186% for Terbinafine).
• EP: +22% vs. the global market average (–19% for Tacrolimus to +128% for Rabeprazole).
• USP: –8% vs. the global market average (–30% for Diclofenac to +29% for Ursodeoxycholic Acid).
• IP: –26% vs. the global market average (–66% for Diclofenac to +24% for Flurbiprofen).

While both the U.S. Pharmacopeia (USP) and European Pharmacopoeia (EP) are globally recognized, USP specifications tend to be adopted more broadly, which supports larger production runs and wider supplier bases (Figure 3). The Japanese Pharmacopoeia (JP) and Indian Pharmacopoeia (IP) are more regional in application, with JP typically pricing higher and IP lower, most likely reflecting differences in documentation scope and quality requirements.

Patent expiry shifts API prices ahead of time

The patent for the monohydrate phosphate salt of Sitagliptin, held by Merck & Co. (known as MSD outside of the U.S. and Canada) and covering the active ingredient in JANUVIA, will expire on November 24, 2026, with pediatric exclusivity extending to May 24, 2027 (Merck). The co-formulation of Sitagliptin and Metformin (JANUMET) is protected by a separate Merck & Co. patent expiring on January 21, 2029, with pediatric exclusivity extending to July 21, 2029 (Merck).

Ahead of these patent expirations, the QYOBO platform shows a substantial price decrease over the past 5 years for Sitagliptin, reflecting intensifying competition in the market (Figure 4).

A total of 47 API manufacturers have already submitted a USDMF for Sitagliptin (Figure 5, QYOBO platform), and 20 ANDAs have received tentative FDA approval.

Interestingly, Zydus Lifesciences has already entered the market using the sitagliptin free base rather than the patented phosphate salt, a strategic move under a 505(b)(2) NDA pathway allowing earlier market entry (FDA).

Up-to-date, granular market data available on the QYOBO platform

The QYOBO platform continuously updates price insights across thousands of APIs (small molecules and biologics), excipients, intermediates, and OTC ingredients. In this blog post, you can explore how prices evolve across these categories for a set of spotlight substances – and on the platform, dive deeper into current trends, regional variations, and detailed pricing data that power data-driven decisions across the pharmaceutical value chain.