Drugmakers smacked with another ingredient price hike

Some drugmakers will face higher costs as another drug ingredient maker raises prices on its products. Evonik, one of the larger players in amino acids, used in drugs for conditions such as high blood pressure and diabetes, says it has raised prices immediately 10% to 15% depending on the amino acid and its quality. The company, which manufactures its products in France and China, laid the increase off on higher raw material and energy prices in its announcement. But Thomas Hermann, vice president of pharma amino acids for Evonik, tells in-PharmaTechnologist that efforts by China to make improvements in manufacturing and more stringent active pharmaceutical ingredient oversight have also had an impact: "For instance a clampdown on wastewater treatment means ... significantly higher production costs and that is passed on to the customer." While good for the industry in general, it does raise costs, he said. Other ingredient prices are also on the rise. Just last month, excipient maker Rousselot said it would raise prices on gelatin for the fourth quarter and told customers to be prepared for aggressive price hikes next year. Rousselot boosted bovine bone gelatin prices 4% to 5% for the quarter, and porcine gelatins went up 2% on average. Story | More