After Witnessing Turbulence, Paracetamol Prices to Now Stabilize in Europe

After experiencing sudden augmentation in the price trajectory for the past two months, Paracetamol prices are now recorded to witness a stable trajectory yet on the higher side and further anticipate following the same trend worldwide. Several factors, including the revival of the pandemic, disruptions in the supply, and medicine shortages, have elevated the market demand for Paracetamol across the world.

As more people turn to Over-The-Counter (OTC) pharmaceuticals to treat common illnesses, the sale of Paracetamol pills for cough, cold, and flu has increased, particularly in growing markets like India and China. The market has been impacted by rising R&D initiatives in the pharmaceutical and healthcare sectors and accelerating technological advancements in the manufacture of Paracetamol.

The German government is thinking about changing the law to remove the procurement limitations that currently force health insurance to buy pharmaceuticals from various suppliers, including more expensive ones, to ensure a more reliable supply. Patients have found it challenging to obtain several essential medications, including Paracetamol, which has further influenced the price trend. The increase in winter diseases in the northern hemisphere and the drop in Chinese exports have had an impact on demand. 

One of the largest producers of generic drugs in Europe, Sandoz, already acknowledged that they were having trouble meeting demand and were facing supply difficulties, but they are now reporting to cope with the situation and keeping the supply-demand equilibrium. On the contrary, Energy costs have increased because of the invasion of Russia and Ukraine, which eventually impacted the cost of Paracetamol. The cost of corporate debt is increasing due to rising interest rates, which also raises the cost of goods, labor, and energy nationally. According to the European Commission, the EU also aims to increase local production capacity from APIs including Paracetamol and reduce its reliance on China, ensuring a handful of supplies among the market players.

According to ChemAnalyst: " It is projected that the cost of Paracetamol would continue to rise in the approaching months of 2023. The European government is working to end a severe pharmaceutical shortage in Europe by stockpiling medications and pressuring manufacturers to secure supplies.