NEWS API price transparency as a competitive edge Discover how supplier competition, purchase volume, and buyer location shape API prices – and how companies can use this transparency to secure competitive terms Using QYOBO’s extensive price data on thousands of APIs, excipients and key starting materials, we show how competition, purchase volume, and buyer location affect API prices. This article reveals how companies – supported by a thorough understanding of the underlying market dynamics – can consistently secure fair, competitive terms in a rapidly changing environment. API prices follow basic supply-demand patterns QYOBO platform data provide evidence that competition amongst suppliers plays an important role in API pricing. This observation reflects basic supply and demand economics: when the number of active manufacturers rises and supply outpaces demand, market leverage shifts to buyers. As competition intensifies, prices fall – often to levels that are unsustainable for marginal producers (typically higher-cost or subscale suppliers). Over time, these suppliers exit, bringing supply and demand back into balance. In an analysis of 1,200 APIs, 26% showed price decreases in at least four out of five years – with 6% declining every single year (Figure 1). Only 9% of APIs experienced consistent price increases, rising in at least four of the last five years. These movements strongly correlate with the number of active manufacturers. APIs with declining prices had between 15 and 20 international manufacturers, whereas those with increasing prices only had an average of 4 to 9 manufacturers, which suggests that the optimal range for a balanced market lies between 9 and 12 internationally active manufacturers – a level where neither buyers nor suppliers hold excessive leverage. 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. Together, these findings show that scale brings both cost and price stability advantages, yet most market participants operate in smaller segments where data transparency and negotiation power remain crucial to achieving competitive pricing. Geography matters, but not alone Location matters, but it’s not the only factor. QYOBO data across 165 APIs shows that 49% have higher prices in Western regulated markets (WRM) than in the rest of the world (ROW), with a median price premium of 43% (Figure 4). For about 30% of APIs, prices are similar in both regions (within ±10%). Interestingly, 21% of APIs are more expensive in the ROW, showing 25% price premium vs. Western regulated markets. 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). This divergence underscores how demand-side factors – such as sudden order surges, inventory buildup, or short-term market disruptions such as temporary tariffs – can temporarily drive API prices upward even when input costs remain stable. By mapping these interdependencies, the QYOBO platform enables users to distinguish between price movements driven by input-cost fluctuations and those resulting from market dynamics at the API level, providing a clearer view of underlying supply chain pressures and pricing drivers. Turn price transparency into advantage Across manufacturers, volumes, geographies, and upstream cost drivers, the picture is clear: current and reliable visibility into pharmaceutical raw material prices is critical to stay competitive in a fast-moving pharma market. The QYOBO platform provides this clarity at scale. One Platform. From Insight to Action. See how QYOBO transforms pharma decision-making with AI-driven insights. Get Your Demo Insights Latest company news and developments News 02 December 2025 API price transparency as a competitive edge News 18 November 2025 QYOBO API1000 Price Index – Focus on Pharmacopoeia and Patent Expiry
