USA Azithromycin Prices to Surge Amidst Supply Chain Woes and High Demand

Azithromycin prices in the USA are expected to rise in June, continuing the trend observed in the previous month. This surge is primarily due to heightened demand from end-user consumers, ongoing supply chain issues, and a limited supply among market participants. In response, suppliers and distributors are quoting higher Azithromycin prices to maximize profits, maintaining a bullish sentiment in the market.

The United States is currently grappling with a significant shortage of medications, including Azithromycin, due to a mismatch between supply and demand. This imbalance is primarily caused by production limitations and challenges within the supply chain, among other factors. Such situations, which are common across various industries, often result in price hikes, providing opportunities for existing market players to capitalize on. According to the U.S. Food and Drug Administration (FDA), there are presently 233 drugs in short supply spanning 22 therapeutic categories. This pharmaceutical shortage in the U.S. market presents an opportunity for Indian generic drug manufacturers to intervene and address the deficit. It also opens doors for Indian pharmaceutical companies to expand their presence in segments experiencing shortages, potentially bolstering the Azithromycin market.

Additionally, in India, companies have reported reduced working hours due to an intense heatwave, impacting production volumes. The anticipated losses may affect exports, causing delays and disruptions in manufacturing, which could further reduce inventory. This situation could contribute to increased Azithromycin prices in the USA.

Moreover, shipping cargo to Europe and the US by sea is set to become more expensive starting in June. Shipping lines are implementing surcharges to compensate for the additional costs incurred by routing vessels through the Cape of Good Hope. For instance, German shipping line Hapag Lloyd plans to impose a Peak Season Surcharge (PSS) of $1,000 per container for shipments from the Indian Subcontinent and the Middle East to the North American West Coast. Consequently, these added costs are likely to be passed on to consumers, further supporting the upward trend in Azithromycin prices.

Furthermore, the early onset of the peak season has introduced uncertainty into the market, prompting a sharp increase in demand for essential goods, including active pharmaceutical ingredients (APIs) such as Azithromycin. Suppliers are struggling to keep pace with this heightened demand, leading to shortages and consequent price hikes for Azithromycin.

ChemAnalyst forecasts that Azithromycin prices will continue to increase in the near future. This expectation is linked to the anticipated global easing of monetary policies, which is expected to boost demand across diverse end-user sectors. Moreover, heightened trading activity could additionally bolster the Azithromycin market.