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One of the defining characteristics of the API market is its global nature. With different countries specializing in the production of various APIs, pharmaceutical companies often depend on suppliers from around the world. For instance, India and China are leading suppliers of generic APIs, benefiting from lower production costs and a well-established manufacturing base. However, relying on overseas suppliers also exposes companies to potential risks, including supply chain disruptions, quality variations, and geopolitical challenges. As a result, pharmaceutical companies are increasingly looking to diversify their supplier bases and develop local sourcing strategies to mitigate these risks.
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