EUROAPI to Ramp Up Production of Prostaglandin APIs in January 2023

EUROAPI, the largest prostaglandin API producer in the world, has built and successfully implemented a comprehensive remediation plan, allowing it to progressively restart prostaglandin production at its site in Budapest, Hungary, on January 19, 2023, following precautionary steps. A halt in production at this facility began in early December and lasted until January 18.

EUROAPI proactively decided on November 30, 2022, to pause batch release out of an abundance of caution and temporarily suspend prostaglandin production as a second step. However, prostaglandin products on the market were within specification and suitable for their intended use. In December, this temporary and targeted production pause affected EUROAPI's business activities and prostaglandin API prices.

Prostaglandins are hormone-like lipids that have a multitude of useful applications in healthcare, including several bodily functions like inflammation, pain, and uterine contractions. EUROAPI manufactures and deals in 18 APIs, including Dexamethasone Sodium Phosphate, Furosemide, Naltrexone Hydrochloride, etc., which fall under the prostaglandin category.

Recently, amid high demand from drugmakers and production of fresh stocks, Dexamethasone Sodium Phosphate, Furosemide, and Naltrexone Hydrochloride prices in the regional market of Europe continued to incline in the month's second half. Also, on the other hand, to manufacture these APIs, raw material is required, which is still imported from China. They have ordered more raw materials from China in order to increase their production. However, some German buyers have faced high prices for raw materials from China after the Chinese market reopened. The price disparity between Europe and Asia is still substantial. The traders attributed bullish demand, and as a result, they will anticipate significant changes in February 2023.

According to the ChemAnalyst, prostaglandin API's prices are anticipated to increase in the upcoming month in the expectation of increasing demand from drugmakers. Additionally, traders are still recommended to observe changes in the supply and demand outlook in the same timeframe.