Amoxicillin Trihydrate Prices Rise in US and Europe Due to Rising Demand Amidst Supply Shortage
- 23-Aug-2023 6:53 PM
- Journalist: Robert Hume
Amoxicillin Trihydrate prices showed an upward trend due to an insufficient supply in the US and European markets combined with an increasing demand from end-users. Market participants were intent on replenishing their inventories with fresh stock, which also contributed to the price volatility.
The United States is currently facing a shortage of Amoxicillin Trihydrate, a drug commonly prescribed for the treatment of pneumonia and bronchitis, as well as other bacterial infections. This shortage is being attributed to a variety of factors, including an increase in demand, excessive reliance on foreign supply, poor visibility of the supply chain, and a low profit margin, which is a measure of the cost to produce a particular drug. The demand increased due to the rise in syphilis infections in the US, further contributing to the rise in the prices of the Amoxicillin Trihydrate. Furthermore, the transport networks in the US have been affected by extreme weather events, such as floods and storms, which have made it difficult for businesses to deliver goods quickly and in sufficient quantities, resulting in an increase in prices.
The availability of Bicillin (a common form of penicillin produced by Pfizer) for the treatment of syphilis has been reduced, prompting the manufacturer to suggest the use of a substitute. This has led to an increase in the demand for Amoxicillin Trihydrate, resulting in an increase in the prices.
The United States government reported a 3.2% increase in consumer prices for the month of July, following a 3% annual increase in June, the lowest rate in over two years. Food prices increased by 0.2%, while energy prices just increased by 0.1%. This also increased the business cost to reliance on APIs backed by high wages and increased labor costs, thus further supporting the upward trajectory of Amoxicillin Trihydrate prices. Additionally, decreased export of antibiotics APIs (Active pharmaceutical ingredients) from major exporting foreign countries, such as China, also caused the increase in prices of Amoxicillin Trihydrate.
A similar upward trend of Amoxicillin Trihydrate prices is also observed in the European market. The German economy continued to experience economic stagnation. The prices of Amoxicillin Trihydrate increased in Germany due to increased demand amid a surge in respiratory infections. High inflation and the rising energy crisis have also put pressure on pharmaceutical firms, affecting supplies. Moreover, a decline in business activity and limited inventory level among market retailers also increased Amoxicillin Trihydrate prices.
As per the ChemAnalyst analysis, the prices of Amoxicillin Trihydrate continued to rise in the upcoming months due to the persistent antibiotics shortage in the US and European markets. The demand will continue to remain on the higher side from end-user pharmaceutical and healthcare industries, keeping the market sentiments on the north side.