Sourcing & Procurement

A practical guide to sourcing active pharmaceutical ingredients

Sourcing an API is a documentation exercise before it is a commercial one. This guide sets out the sequence experienced buyers follow: define the material, define the specification, qualify the legal entity, then discuss terms.

Red Chem Biotech Technical Review · Updated 2026-09-14

Start with the material, not the price

An enquiry that names only a substance and a quantity cannot be answered responsibly. Before pricing has any meaning, four things must be fixed: the exact substance including salt or hydrate form, the grade and the specification it will be released against, the intended application, and the destination country. A change in any one of these can change the material, the documentation set, and whether supply is lawful at all.

Define the specification explicitly

Name the compendial monograph if one applies, for example a USP or European Pharmacopoeia monograph, or attach your own in-house specification. State which tests are release tests and which are periodic. Where a monograph is claimed, ask which edition and confirm that all monograph tests are actually performed rather than assumed from a supplier's internal method.

Qualify the legal entity separately from the material

A company can be correctly registered as a legal entity and still not be a manufacturer, a laboratory, or a licensed exporter. Confirm the legal name and registration number, then ask specifically: who manufactures the material, at which site, under what licence or registration, and who is the legal seller on the invoice. Registration records establish existence, not capability.

Ask for evidence in a defined order

Request the specification, then a representative batch Certificate of Analysis, then the Safety Data Sheet, then site or regulatory documentation relevant to your use. Read each document for internal consistency: does the batch number on the COA appear elsewhere, are the methods named, are the acceptance criteria stated alongside results, is the document dated and authorised?

Treat regulatory status as jurisdiction-specific

Approval, licence and import permissions differ by country and by intended use. A material freely traded for research in one jurisdiction may be prescription-controlled in another. Confirm classification for your destination and your application before committing.

Document the decision

Record what you asked, what was supplied, what was missing, and the basis on which you proceeded. That record is the difference between a qualified supply chain and an assumed one.

References

  • ICH Q7 Good Manufacturing Practice Guide for Active Pharmaceutical Ingredients
  • ICH Q6A Specifications: Test Procedures and Acceptance Criteria for New Drug Substances

Pharmaceutical Ingredients this guide applies to

All pharmaceutical ingredients with prices →