US Amoxicillin Trihydrate Prices Likely to Surge in October 2023 Amid Supply Shortage
- 05-Oct-2023 5:55 PM
- Journalist: Xiang Hong
Amoxicillin Trihydrate costs in the United States are predicted to skyrocket in October 2023. The factors include a lack of supply, increased demand, and declining trade with key exporting nations. Amoxicillin Trihydrate is the most commonly prescribed penicillin antibiotic since it treats a wide spectrum of bacterial illnesses, which explains the drug's steady demand in the United States. According to the US Food and Drug Administration's drug shortage database, liquid formulations of the Amoxicillin Trihydrate, used as first-line treatments for strep throat and other infections, are still in low supply with little improvement. Certain dosages of Amoxicillin Trihydrate are experiencing an industry-wide supply shortage; hence, market participants are concentrating on restocking their stockpiles. In addition, respiratory infections tend to increase in October and peak in December and February. Therefore, demand may exceed supply, leading to a shortage of Amoxicillin Trihydrate and an increase in prices.
China is the leading exporter of APIs (Active Pharmaceutical Ingredients) to the United States. In China, manufacturing activity is hindered around the start of October owing to the annual "Golden Week" holiday. The whole country is on holiday, causing business and factory closures and a potential 14-day halt in manufacturing. This causes supply chain disruption and a decline in exports to other countries, such as the United States, resulting in a decrease in supply in the US domestic market and higher Amoxicillin Trihydrate pricing. Furthermore, transportation services have been suspended, and those that remain are extremely costly. It is almost certain that both ocean and air freight charges will remain high, keeping Amoxicillin Trihydrate prices on the higher side.
The US economy has demonstrated incredible resilience despite being exposed to one of the most severe periods of monetary tightening in recent history, stoking hopes that the world's largest economy may have a "soft landing." In September, the Federal Reserve held the benchmark interest rate unchanged, waiting to assess if its record streak of rate hikes over the preceding 18 months had controlled inflation. The central bank retained its main policy rate in the 5.25% to 5.50% range, noting an improvement in economic conditions and explaining the uptick in Amoxicillin Trihydrate prices brought on by the positive consumer sentiments.
ChemAnalyst predicts a decline in Amoxicillin Trihydrate pricing in November due to streamlined trade with China and sufficient supply in the USA market. The viral season is predicted to hit this winter, which will cause a jump in market demand, and Amoxicillin Trihydrate prices may rise again in December 2023. Additionally, it is anticipated that inflationary pressure will reduce, which might also help expand the Amoxicillin Trihydrate market.