Skip to main content
Log in

Understanding the problems in pharmaceutical procurement with special reference to active pharmaceutical ingredients and excipients

  • Review
  • Published:
Accreditation and Quality Assurance Aims and scope Submit manuscript

Abstract

Procurement of raw materials, key intermediates and excipients for the preparation of finished pharmaceutical preparation is considered to be complex process which involve multiple channels and require skilled personnel and proper validation. This review attempts, in relatively brief compass to provide an account of the problems that arise while procurement of active pharmaceutical ingredient (API) and excipients in pharmaceutical industry. This review has been structured with specified as well as generalized problems raised up during procurement of API and other material in pharmaceutical industry. Lack of proper regulatory requirements and unbiased market information with the absence of a comprehensive procurement policy is the major factor which creates complications while procurement. Besides these, lack of properly designed user requirement specifications (URS) which ultimately affect quality and delivery of quoted material. An 8-Question-based approach has been proposed to design URS, other approaches for material procurement and supplier qualification have been discussed, and a vendor certification procedure is presented.

This is a preview of subscription content, log in via an institution to check access.

Access this article

Price excludes VAT (USA)
Tax calculation will be finalised during checkout.

Instant access to the full article PDF.

Fig. 1
Fig. 2
Fig. 3

Similar content being viewed by others

Abbreviations

IP:

Indian Pharmacopoeia

USP:

United States Pharmacopeia

BP:

British Pharmacopoeia

JP:

Japanese Pharmacopoeia

API:

Active pharmaceutical ingredient

URS:

User requirement specifications

KSM:

Key starting materials

CAS:

Chemical abstract service no.

IUPAC:

International Union of Pure and Applied Chemistry

EP:

European Pharmacopoeia

GMP:

Good manufacturing practices

GLP:

Good laboratory practices

ECPPA:

Ethoxy carbonyl phenyl propyl alanine

RP:

Reaction product

MAP:

Michael addition product

DMF:

Drug master file

CMC:

Chemistry, manufacturing and control

CTD:

Common technical document

USFDA:

United States Food and Drug Administration

NF:

National formulary

QUEST:

Question, understand, evaluate, site audit, and track

IPEA:

International Pharmaceutical Excipients Auditing

EMA:

Economically motivated adulteration

GDP:

Good distribution practices

GPP:

Good pharmaceutical procurement

IPC:

Interagency Pharmaceutical Coordination Group

UNICEF:

United Nations Children’s Fund

UNFPA:

United Nations Population Fund

FPP:

Finished pharmaceutical product

References

  1. Caveat emptor - Definition from the Merriam-Webster Online Dictionary (2008) Merriam-Webster, Springfield, Massachusetts. www.websters-online-dictionary.org. Accessed 27 Jan 2017

  2. The Consumer Protection Act, 1986 (amendment 2002) Ministry of Consumer Affair, Food and Public Distribution, Government of India, New Delhi. http://www.ncdrc.nic.in. Accessed 19 Dec 2017

  3. Eigen LD (2009) A solution to the problem of consumer contracts that cannot be understood by consumers who sign them. Scriptamus. www.scriptamus.wordpress.com. Accessed 18 Dec 2017

  4. Christopher M, Schary PB, Skjott-Larsen T (1979) Customer service and distribution strategy. Wiley-Halstead, New York

    Google Scholar 

  5. Talluri S (2002) A buyer–seller game model for selection and negotiation of purchasing bids. Eur J Oper Res 143:171–180

    Article  Google Scholar 

  6. Jones SD, Levine HL (2005) Managing biopharmaceutical manufacturing vendor identification and selection through use of a request for proposal. Am Pharm Outsourc. www.americanpharmaceuticaloutsourcing.com. Accessed 08 Jan 2018

  7. Competitor Focus Series on Decision Matrix: Selecting a CRM vendor in the pharmaceutical industry (Competitor Focus Series) DMTC2133 (2007). http://www.oracle.com/us/corporate/046960.pdf. Accessed 03 Feb 2018

  8. Garvin DA (1993) Building a learning organization. Harvard Bus Rev. www.hbr.org. Accessed 03 Feb 2018

  9. Kannan VR, Tan KC (2003) Attitudes of US and European managers to supplier selection and assessment and implications for business performance. Benchmarking Int J 10(5):472–489. https://doi.org/10.1108/14635770310495519

    Article  Google Scholar 

  10. Dickson G (1996) An analysis of vendor selection systems and decisions. J Purchasing 2:28–41

    Google Scholar 

  11. Benton WC, Krajeski L (1990) Vendor performance and alternative manufacturing environments. Decis Sci 21(2):403–415

    Article  Google Scholar 

  12. McPake B, Ngalande-Bande E (1994) Contracting out health services in developing countries. Health Policy Plan 9:25–30

    Article  CAS  Google Scholar 

  13. Dorner G (1982) Management of drug purchasing, storage and distribution: manual for developing countries, 3rd edn. Editio Cantor Verlag, Aulendorf

    Google Scholar 

  14. Carroll NV (2007) Examining the rift between the pharmaceutical industry and the pharmacy profession: a channels of distribution approaches. In: Holdford DA (ed) Pharmacy and the pharmaceutical industry: healing the rifts. The Haworth Press, New York

    Google Scholar 

  15. Forgues D, Koskela L (2009) The influence of a collaborative procurement approach using integrated design in construction on project team performance. Int J Manag Projects Bus 2(3):370–385. https://doi.org/10.1108/17538370910971036

    Article  Google Scholar 

  16. Armstrong NA (1988) Excipients-standards, tests and functionality. Eur Pharm Rev 1:19–22

    Google Scholar 

  17. WHO Technical Report Series on WHO expert committee report on specifications for Pharmaceutical Preparations (2016). http://apps.who.int/medicinedocs/en/d/Js23239en. Accessed 25 Jan 2018

  18. Bernard P (1989) Managing vendor performance. Prod Invent Manag J 30(1):1–7

    Google Scholar 

  19. Gavin PF, Olsen BA, Wirth DD, Lorenz KT (2006) A quality evaluation strategy for multi-sourced active pharmaceutical ingredient (API) starting materials. J Pharm Biomed Anal 41:1251–1259

    Article  CAS  Google Scholar 

  20. USFDA (2006) Guidance for industry on chemistry, manufacturing, and controls information; withdrawal and revision of seven guidance. Fed Reg 71(105):31194–31195

    Google Scholar 

  21. Oehwé LH, Prado LD, Rocha HVA (2017) Prednisone raw material characterization and formulation development. Braz J Pharm Sci 53(4):e00088. https://doi.org/10.1590/s2175-97902017000400088

    Article  Google Scholar 

  22. Drew HD, Brower JF, Juhl WE, Thornton LE (1998) Quinine photochemistry: a proposed chemical actinometer system to monitor UV-A exposure in photostability studies of pharmaceutical drug substances and drug products. Pharmacop Forum (USA) 24:6334–6346

    Google Scholar 

  23. International Chamber of Commerce (1990) International rules for the interpretation of trade terms. International Chamber of Commerce Publishing, Paris

    Google Scholar 

  24. Connors KA, Amidon GL, Stella VJ (1986) Chemical stability of pharmaceuticals: a handbook for pharmacists, 2nd edn. Wiley, New York

    Google Scholar 

  25. The eMolecules Chemical Search (2017). http://www.emolecules.com. Accessed 27 Jan 2018

  26. Beyea SC, Faan RN (2007) Confusing, look-alike, and sound-alike medications. ARON J 86(5):861–863

    Google Scholar 

  27. Synonyms of m-anisidine. www.chemicalbook.com. Accessed 19 Jan 2018

  28. Monteleukast information. www.merckfrosst.ca. Accessed 19 Jan 2018

  29. European Commission, The rules governing medicinal products in the European Union, Luxembourg (1998) Pharmaceutical legislation, Medicinal products for human use, ISBN 92-828-2032-7, pp 13–40

  30. Schniepp S (2009) Overview of USP-NF requirements for stability purposes. In: Huynh-Ba K (ed) Handbook of stability testing in pharmaceutical development. Springer Science, New York

    Google Scholar 

  31. Aaltonen J, Allesø M, Mirza S, Koradia V, Gordon KC, Rantanen J (2009) Solid form screening—a review. Eur J Pharm Biopharm 71:23–37

    Article  CAS  Google Scholar 

  32. Davey RJ (2004) Crystallization: How come you look so good? Nature 428:374–375

    Article  CAS  Google Scholar 

  33. Gavezzotti A (1994) Are crystal structures predictable? Acc Chem Res 27(10):309–314

    Article  CAS  Google Scholar 

  34. Kaushal AM, Gupta P, Bansal AK (2004) Amorphous drug delivery systems: molecular aspects, design, and performance. Crit Rev Ther Drug Carrier Syst 21:133–193

    Article  CAS  Google Scholar 

  35. Yu L (2001) Amorphous pharmaceutical solids: preparation, characterization and stabilization. Adv Drug Del Rev 48:27–42

    Article  CAS  Google Scholar 

  36. Morris KR (1999) Structural aspects of hydrates and solvates. In: Brittain HG (ed) Polymorphism in pharmaceutical solids. Marcel Dekker Inc, New York

    Google Scholar 

  37. Chemburkar SR, Bauer J, Deming K (2000) Dealing with the impact of Ritonavir polymorphs on the late stages of bulk drug process development. Org Process Res Dev 4:413–417

    Article  CAS  Google Scholar 

  38. Jambhekar SS, Breen PJ (2009) Basic pharmacokinetics. Pharmaceutical Press, London

    Google Scholar 

  39. Bulow J (2004) The gaming of pharmaceutical patents. In: Jaffe AB, Lerner J, Stern S (eds) Innovation policy and the economy, 4th edn. MIT Press, Cambridge

    Google Scholar 

  40. Bernstein J (2002) Polymorphism and patents, polymorphism in molecular crystals. Clarendon Press, Oxford

    Google Scholar 

  41. Martino PD, Guyot-Hermann AM, Conflant P, Drache M, Guyot JC (1996) A new pure paracetamol for direct compression: the orthorhombic form. Int J Pharm 128:1–8

    Article  CAS  Google Scholar 

  42. Nichols G, Frampton CS (1998) Physicochemical characterization of the orthorhombic polymorph of paracetamol crystallized from solution. J Pharm Sci 87:684–693

    Article  CAS  Google Scholar 

  43. Suihko E, Lehto VP, Ketolainen J, Laine E, Paronen P (2001) Dynamic solid-state and tableting properties of four theophylline forms. Int J Pharm 217:225–236

    Article  CAS  Google Scholar 

  44. Sun C, Grant DJW (2004) Influence of crystal structure on the tableting properties of sulfamerazine polymorphs. Pharm Res 18:274–280

    Article  Google Scholar 

  45. Connelly JC, Hasegawa R, McArdle JV, Tucker ML (1997) ICH Guideline Residual Solvents. Pharmeuropa 9:57

    Google Scholar 

  46. Knoben JE, Scott GR, Tonelli RJ (1990) An overview of the FDA publication, approved drug products with therapeutic equivalence evaluations. Am J Hosp Pharm 47:2696–2700

    CAS  PubMed  Google Scholar 

  47. Schniepp SJ (2006) Understanding the united states pharmacopeia and the national formulary: demystifying the standards-setting process. Davis Healthcare International Publishing, LLC River Grove

    Google Scholar 

  48. ICH harmonised tripartite guideline, Q6A Specifications (1999) Test procedures and acceptance criteria for new drug substances and new drug products: chemical substances. ICH Secretariat, Geneva

    Google Scholar 

  49. ICH harmonised tripartite guideline (2001) Q1A: stability testing of new drug substance and products

  50. Robertson MI (1999) Regulatory issues with excipients. Int J Pharm 187:273–276

    Article  CAS  Google Scholar 

  51. Smith JM, Dodd TR (1982) Adverse reactions to pharmaceutical excipients. Adv Drug React Ac Pois Rev 1:93–142

    Google Scholar 

  52. Raman NV, Reddy KR, Prasad AV, Ramakrishna K (2008) Development and validation of RP-HPLC method for the determination of genotoxic alkyl benzenesulfonates in amlodipine besylate. J Pharm Biomed Anal 48(1):227–230

    Article  CAS  Google Scholar 

  53. Robertson MI (1996) Licensing considerations regarding the immediate packaging of pharmaceuticals for human use. In: Lockhart H, Paine FA (eds) Packaging of Pharmaceuticals and Healthcare Products. Blackie, London

    Google Scholar 

  54. Tingstad JE (1964) Physical stability testing of pharmaceuticals. J Pharm Sci 53:955–962

    Article  CAS  Google Scholar 

  55. Perlia X (1967) Stability and stabilization of drugs. II. Physical viewpoints. Pharm Acta Helv 42:265–302

    CAS  PubMed  Google Scholar 

  56. Carstensen JT, Attarchi F (1988) Decomposition of aspirin in the solid state in the presence of limited amounts of moisture. II. Kinetics and salting-in of aspirin in aqueous acetic acid solutions. J Pharm Sci 77:314–317

    Article  CAS  Google Scholar 

  57. Mazur A, Green S, Shorr E (1956) The oxidation of Adrenaline by Ferritin iron and hydrogen peroxide. J Biol Chem 220(1):227–235

    CAS  PubMed  Google Scholar 

  58. Tao L, Cheng ZX, Lan LK, Rong LC (2004) Influence of light and temperature on the stability of procaine hydrochloride injection. Acta Pharm Sin 39(8):645–649

    Google Scholar 

  59. Fabre H, Eddine NH, Lerner D, Mandrou B (1984) Autoxidation and hydrolysis kinetics of the sodium salt of phenylbutazone in aqueous solution. J Pharm Sci 73:1709–1713

    Article  CAS  Google Scholar 

  60. Jin GP, Chena QZ, Dinga YN, He JB (2007) Electrochemistry behavior of adrenalin, serotonin and ascorbic acid at novel poly rutin modified paraffin-impregnated graphite electrode. Electrochim Acta 52(7):2535–2541

    Article  CAS  Google Scholar 

  61. Davis RE (1959) Temperature as a variable during a kinetic experiment. J Phys Chem 63:307–309

    Article  CAS  Google Scholar 

  62. Grady LT, Thakker KD (1980) Stability of solid drugs: degradation of ergocalciferol (vitamin D2) and cholecalciferol (vitamin D3) at high humidities and elevated temperatures. J Pharm Sci 69:1099–1102

    Article  CAS  Google Scholar 

  63. Salemink PJM, Roodbeen JCK, Gribnau TCJ, Janssen PSL, Veen AJV (1987) The influence of gamma-irradiation upon the chemical and biological properties of insulin. Pharm Weekbl Sci 9:172–178

    CAS  PubMed  Google Scholar 

  64. The WHO Technical Report Series (996) (2016) WHO expert committee on specifications for pharmaceutical preparations, 50th report. World Health Organization, Geneva

    Google Scholar 

  65. Leopoulos V, Voulgaridou D, Kirytopoulos K (2006) Enterprise resource planning systems as a means of quality management improvement: a case study of a para pharmaceutical SME. In: Proceedings of the 8th SMESME international conference, Coventry, UK

  66. Cupps T, Fritschel B, Mavroudakis W, Mitchell M, Ridge D, Wyvratt J (2003) Starting material, reprocessing, retesting, and critical controls. Pharm Tech 34–52. www.pharamatech.com

  67. Byrn S, Pfeiffer R, Ganey M, Hoiberg C, Poochikian G (1995) Pharmaceutical solids: a strategic approach to regulatory considerations. Pharm Res 12:945–954

    Article  CAS  Google Scholar 

  68. USFDA Guideline for Submitting Supporting Documentation in Drug Applications for the Manufacture of Drug Substances. 1989 (draft revision in 2016). https://www.fda.gov/drugs/developmentapprovalprocess/formssubmissionrequirements/drugmasterfilesdmfs/default.htm. Accessed 23 Jan 2018

  69. USFDA Guideline for the Format and Content of the Chemistry, Manufacturing, and Control Section of an Application. https://www.fda.gov/downloads/Drugs/Guidances/ucm070565.pdf. Accessed 23 Jan 2018

  70. USFDA Guideline for Submitting Samples and Analytical Data for Methods Validation (1987). https://www.fda.gov/drugs/guidancecomplianceregulatoryinformation/guidances/ucm149499.htm. Accessed 23 Jan 2018

  71. Pennie WD, Tugwood JD, Oliver GJA, Kimber I (2000) The principles and practice of toxicogenomics: applications and opportunities. Toxicol Sci 54:277–283

    Article  CAS  Google Scholar 

  72. Code of Federal Regulations (CFR), Title 21 Part 211, Food and Drugs, Current Good Manufacturing Practices for Finished Pharmaceuticals. http://www.accessdata.fda.gov. Accessed 24 Jan 2018

  73. Morton J Taking the color of medications seriously. http://www.colormatters.com/body_pills.html. Accessed 24 Jan 2018

  74. Capsugel List of Colorants for Oral Drugs (2002) 11th edn. Pfizer Inc Capsugel Division, Pune

  75. European drug master file procedure for active substances, 3AQ7a (1993). www.emea.eu. Accessed 20 Jan 2018

  76. Cafmeyer N, Lewis JM (2009) How to develop a practical (and compliant) vendor qualification program. Pharm Tech 33(10). www.pharmatech.com. Accessed 20 Jan 2018

  77. IPEA excipient certification approach presented in FDA Economically Motivated Adulteration (EMA) conference. www.ipeainc.com. Accessed 20 Jan 2018

  78. World Health Organization resource Operational principles for good pharmaceutical procurement (1999) Essential drugs and medicines policy. World Health Organization, Geneva

    Google Scholar 

  79. Baseline assessment of the Nigerian pharmaceutical sector, Nigeria (2002), Federal Ministry of Health, Nigeria

  80. Parikh DM (2003) Validation in contract manufacturing. In: Berry IR, Nash RA (eds) Pharmaceutical process validation, 3rd edn. Marcel Dekker, New York

    Google Scholar 

Download references

Author information

Authors and Affiliations

Authors

Corresponding author

Correspondence to Pawan Kumar Porwal.

Ethics declarations

Conflict of interest

The authors do not have any conflict of interest for this manuscript.

Rights and permissions

Reprints and permissions

About this article

Check for updates. Verify currency and authenticity via CrossMark

Cite this article

Alam, Z., Kaur, S. & Porwal, P.K. Understanding the problems in pharmaceutical procurement with special reference to active pharmaceutical ingredients and excipients. Accred Qual Assur 23, 319–328 (2018). https://doi.org/10.1007/s00769-018-1344-6

Download citation

  • Received:

  • Accepted:

  • Published:

  • Issue Date:

  • DOI: https://doi.org/10.1007/s00769-018-1344-6

Keywords

Navigation