Chiral Chemistry Rising Star of Pharmaceutical Intermediates Technologies
07-Nov-2002
The shining light of the European pharmaceutical intermediates market is chiral
chemistry according to a new report published by international market consultants Frost
& Sullivan this week.
The pharmaceutical Intermediates market is highly fragmented and overcrowded. Whilst
it continues to experience growth, it is at a much lower rate than the double digit
figure predicted by the Deutsche Bank in the 90's
However, by segmenting the market
into its nine key technologies, Frost & Sullivan is able to identify particular areas
of the industry that are showing above average growth and development rates. Chiral
chemistry can quite clearly be seen as the rising star.
Dr Andrew Barton, Frost & Sullivan Research Analyst and author of the report explains,
"A large majority of products in development at the moment are based on building
blocks with chiral characteristics. The introduction of chirality into a species
usually occurs downstream and therefore, closer to the stage of final dosage Formation.
This will see greater opportunities for companies with a focus on advanced stage
production. Suppliers who can attract business on the basis of their expertise in
chiral transformations will further benefit from acquiring the other steps of the
production schedule."
In this overcrowded market, the lack of capability differentiation is a significant
challenge that is facing the industry as a whole. Many suppliers have built up
comprehensive portfolios of technology expertise but it is important that they identify
a hook to attract new customers.
"The market can not sustain the current number of participants," warns Barton. "A
dearth of capability differentiation is a significant challenge facing the whole
industry. Flexibility, quality and integrity are the watch words of this industry and
only suppliers who offer these qualities, combined with real differentiating attributes
will draw new clients to them," he adds. Barton expects to see a spate of M&A
activity within the intermediate manufacturers as they seek to broaden their
capabilities.
"Competitors must position themselves in markets with a high level of attractiveness.
But, suppliers can not simply focus on chiral technology at the expense of others,
since clients demand a breadth of capability. The ability to offer a range of non-core
reaction steps along side chiral transformations will be a significant factor for
success in this market", concludes Barton.
"The European Pharmaceutical Intermediates Market Report (B027) " is availiable from
Frost & Sullivan
Frost & Sullivan, 4100 Chancellor Court,
Oxford Business Park, Oxford, OX4 2GX, UK. Contact: Bill Stringer +44 (0) 1865
398651,bill.stringer@frost.com
Other news from the department business & finance
Get the chemical industry in your inbox
From now on, don't miss a thing: Our newsletter for the chemical industry, analytics, lab technology and process engineering brings you up to date every Tuesday and Thursday. The latest industry news, product highlights and innovations - compact and easy to understand in your inbox. Researched by us so you don't have to.
