API supplier BASF raises prices up to 20% in response to rising energy, raw material costs

Summary: The cost of making your medicines is going up. BASF, a massive global chemical company, is raising its prices by up to 20% for the raw ingredients used to make drugs. This price hike affects both the active parts of the medicine (called APIs) and the inactive fillers (called excipients).

Why is this happening? The ongoing conflict in the Middle East is making global oil and energy much more expensive. A huge amount of the world's oil passes through a waterway called the Strait of Hormuz. When oil prices spike, it costs a lot more to run factories and ship products around the world. While the U.S. has enough generic drugs saved up for a few weeks, experts are keeping a close eye on the supply chain. Certain everyday medicines, like the antibiotic amoxicillin, rely heavily on factories in the Middle East and could be the first to face shortages if the energy squeeze continues.

For more details, see Fierce Pharma at fiercepharma.com/manufacturing/api-supplier-basf-raises-prices-20-response-rising-energy-costs (opens in new tab)