Our dedicated API sourcing team is responsible for identifying and securing API and other raw materials for the Group. We source several API’s from suppliers in Asia that have a lower cost basis and therefore offer lower API prices than their Western competitors.

Long-standing relationships with suppliers

We have relationships with approximately 70 suppliers of API including relationships spanning more than 10 years with 26 of its suppliers. We believe that we are the main customer for 20 of our suppliers.

Dedicated facility manufactures API for captive use

We also have the capability to manufacture a limited amount of the API required for some of our finished products. This capability is currently being utilized to manufacture APIs that are either difficult or expensive to source from third parties. Going forward, we will look to manufacture a growing proportion of the API that we use in our products in order to maximize the cost advantages gained by producing API for captive use and to increase both the volume and the breadth of our API production. As of 31 December 2005, Hikma had 5 API applications pending with the FDA and a further 4 APIs under development.