Malaria Treatment & Prevention

Artemisinin market (in)stability

Started by Kileken ole-MoiYoi on 13 Jul 2010
Last edited by Kileken ole-MoiYoi on 21 Sep 2010

When ACTs were first introduced to the global malaria community in 2001, there was a perceived shortage of artemisinin, the key active pharmaceutical ingredient. This perceived shortage caused artemisinin’s market price to rapidly increase peaking at $1,200 per kilogram in 2006. The high market price incentivized many farmers (artemisinin is sourced from Artemisia annua which is grown mainly in China and Eastern Africa) and companies to make both short and long-term investments in the production of artemisinin and ACTs in a supply chain that spanned the world. However, due to unforeseen and underestimated delays in the adoption and delivery of ACTs, the perceived demand did not initially materialize, the market price collapsed to $150 in 2008, and many farmers and companies exited the business.

In addition to demand from national malaria control programs, the artemisinin market price has demonstrated its susceptibility to weather changes during the cultivation of Artemisia annua, donor priorities and funds, supply chain challenges, and regulatory issues. In the future, it could become more volatile in anticipation of synthetic artemisinin, perceived increased demand through the AMFm, and the potential development of artemisinin resistance. There are fears that the cyclical nature (the boom-and-bust scenario) of the artemisinin market will persist unless there is sustained investment that reduces or harmonizes risk for the farmers, artemisinin extractors, and pharmaceutical companies. How might artemisinin resistance, synthetic artemisinin, or high artemisinin yielding A. annua plants from affect the volatile market price for this lifesaving commodity? What steps should be taken to prevent potential artemisinin shortages?

Relevant articles:
http://www.ft.com/cms/s/0/6949e31e-4ce6-11df-9977-00144feab49a.html

http://www.lbl.gov/Science-Articles/Archive/sb-PBD-anti-malarial.html

iOWH: http://www.in-pharmatechnologist.com/Materials-Formulation/iOWH-boosts-key-in...

CNAP: http://www.york.ac.uk/org/cnap/artemisiaproject/projectUpdates.htm

Keywords: artemisinin malaria treatment ACT  Diagnostics & Treatment  funding  Operations & Logistics  policy