The Top 10 Global Fine Chemicals Companies: Industry overview, key trends, growth strategies, financial performance, and SWOT analysis
Posted by China Sourcing CommentatorJul 20
The history of the fine chemicals industry dates back to the late 18th century, when the early chemical industry was evolved from natural dyes and explosives into modern pharmaceutical products. However, by the end of the 19th century, the commercial production of branded pharmaceuticals flourished in Europe (especially in Germany, as many of the active pharmaceutical ingredients were produced in this country). Fine chemicals are generally produced on a large scale, which can be measured in thousands of tonnes per year for certain food additives and drug intermediates. Fine chemicals manufacturing is typically carried out in batch processes, with synthesis being followed by separation and purification steps. Pharmaceuticals has always been the largest market for the fine chemicals industry. Moreover, it is likely that pharmaceutical intermediates will account for over two-thirds of the fine chemicals market by 2012. Although the number of fine chemicals companies involved in the manufacture of high potency APIs (HPAPIs) has historically been limited, the segment has attracted more companies recently. Profitability levels have fallen for many fine chemical companies in recent years. However, the recent focus on biopharmaceutical products holds promise for this industry in the future. For instance, many of the larger fine chemicals players have invested in biotechnology, either through self-funded R&D programs or through alliances and partnerships. Key features of this report • Overview of the global fine chemicals market • Market dynamics and profitability of the global fine chemicals market • Detailed profiles of the leading 10 players in the global fine chemicals market • Key partnerships and M&A activities in the fine chemicals sector • Key trends and opportunities in the global fine chemicals market Scope of this report • Develop insights into the global fine chemicals market, including pharmaceutical intermediates, agrochemical intermediates, flavors and fragrances, dyes, and others • Build knowledge of key partnerships and M&A activities that are shaping the future of the global fine chemicals industry. • Understand the major issues affecting the global fine chemicals industry. • Assess the competitive landscape of the global fine chemical industry. Key Market Issues • Increasing demand for HPAPIs: HPAPIs are very effective in treating diseases at low dosage; however, the production of such potent compounds requires significant investment. Thus, many companies are also differentiating their products from their competitors through specialized technologies and demonstrated expertise. The growth in demand for HPAPIs, primarily in cancer therapies, is expected to increase its sales in the near future. Additionally, the ability to increase life expectancy among cancer patients will also drive the demand for HPAPIs in coming years. • Relocation to emerging and fast growing markets: Managing and rationalizing existing assets in the EU and investing in new facilities in emerging and fast growing markets has been a key trend in the fine chemicals sector recently. Growth in Western Europe started to slow in recent years, making Asia (mainly China and India) and Latin American countries the new growth markets for the fine chemicals industry. • Advanced technologies: Recently, many of the leading pharmaceutical and fine chemicals manufacturers have started to focus on small-scale complex products, an area where advanced technologies are required. For example, in June 2009, Italian fine chemicals company Endura announced that it would commercialize a technology that encapsulates insecticide into very small crystals. The encapsulation delays the release of insecticides, thus enabling an enzyme inhibitor to disable the enzymes that insects use to block pesticides. Moreover, Endura will also promote the concept of microencapsulated piperonyl butoxide (PBO, a naturally occurring synergist) in agriculture throughout the world in collaboration with strategic partners. Key findings from this report • The pharmaceutical industry has always been the largest market for the fine chemicals industry. Although the number of fine chemicals companies that are developing high-potency APIs has been limited, this segment has attracted many companies in recent years. • Fine chemicals players with significant exposure to the generics segment are likely to face pressure on their profitability levels in the near future. However, the recent shift in focus toward biopharmaceutical products will expand the margin of this industry in coming years. • Agrochemical intermediates represent the second largest category among fine chemicals (after APIs), the majority of which are used in the manufacture of pesticides, herbicides, insecticides, fungicides, and fumigates. • Outsourcing has become a key trend in this industry, fueled by the growing importance of biopharmaceutical and virtual pharma companies in low-cost destinations such as Asia. Outsourcing from biotech and pharmaceutical companies will strengthen the custom manufacturing industry in India and China. • BASF is one of the leading chemical producers in the world, with significant exposure in fine chemicals. With a presence in over 80 countries, BASF is one of the leading suppliers of chemical intermediates to the plastic, automobile, agriculture, and pharmaceutical industries. Key questions answered • What are the key trends of global fine chemicals industry? • Which are the leading players in the global fine chemical market? • Which companies will drive the future of the global fine chemicals market? • What are the key strengths, weaknesses, threats, and opportunities for the leading fine chemicals players? • How has the financial performance of leading players in the global fine chemicals market faired through the recent economic downturn? • Which companies are best positioned to succeed in the global fine chemicals market during 2009–14?Table of Contents :The Top 10 Global Fine Chemicals CompaniesExecutive summary 12Industry overview 12BASF 13Lonza 13DSM 14Sumitomo Chemical 14Merck KGaA 15Lanxess (Saltigo) 16Sigma-Aldrich 16Jubilant Organosys 17Johnson Matthey 17Evonik Chemicals 18Chapter 1 Introduction 20What is this report about? 20Methodology 20Chapter 2 Industry overview 24Summary 24Fine chemicals – an overview 25Different types of fine chemicals 26Pharmaceutical intermediates 27Agrochemical intermediates 28Flavors and fragrances 28Dyes and others 29Market dynamics 29Size and structure 29Profitability 30Competitive landscape 30Manufacturing standards and their potential benefits 32Potential benefits of the guideline 33Key partnerships and M&A activity in the fine chemicals sector 34Key trends 35Advanced technologies 35Increasing demand for HPAPIs 35Relocation to emerging and fast growing markets 36Increasing use of biotechnology and nanotechnology 36Chapter 3 BASF 40Summary 40Company overview 41Business segmentation 41R&D focus 42Financial performance 42Growth strategies 44Leading supplier of chemical intermediates 44Verbund, an innovative approach 44Diversified product portfolio 45SWOT analysis 45Chapter 4 Lonza 48Summary 48Company overview 49Business segmentation 49R&D focus 50Financial performance 51Growth strategies 52Chemical manufacturing strengthens Lonza’s technology platform 52Partnership with biopharmaceutical and chemical companies 52SWOT analysis 54Chapter 5 DSM 56Summary 56Company overview 57Business segmentation 57R&D focus 58Financial performance 60Growth strategies 61Increasing R&D activity in emerging markets 61Microreactors: a new technology for pharmaceutical production 61SWOT analysis 62Chapter 6 Sumitomo Chemical 64Summary 64Company overview 65Business segmentation 65R&D focus 66Financial performance 67Growth strategies 69Strong progress in major R&D projects 69Pursuing a new strategy of creative hybrid chemistry 69Strong response to the EU’s REACH legislation for chemicals 69Creation of next-generation chemical safety information management database 70SWOT analysis 71Chapter 7 Merck KGaA Chemicals 74Summary 74Company overview 75Business segmentation 75R&D focus 76Financial performance 76Growth strategies 77Merck KGaA and Millipore partnership for specialty products 77New pharmaceutical production plant to increase Merck KGaA’s capacity inGermany 78Stronger presence in India through acquisition of Bangalore Genei 78Merck Serono to build its R&D operations in China 78SWOT analysis 79Chapter 8 Lanxess (Saltigo) 82Summary 82Company overview 83Business segmentation 83R&D focus 84Financial performance 84Growth strategies 85Expansion in BRIC countries 85Advanced Intermediates segment 86Custom manufacturing 86SWOT analysis 87Chapter 9 Sigma-Aldrich 90Summary 90Company overview 91Business segmentation 91R&D focus 92Financial performance 92Growth strategies 93Strong focus on emerging markets 93Partnerships and alliances 94Targeting the high-growth biology segment 94SWOT analysis 95Chapter 10 Jubilant Organosys 98Summary 98Company overview 99Business segmentation 100R&D focus 101Financial performance 101Growth strategies 104Integrated business model 104Strong R&D and manufacturing services for intermediates and APIs 104Positioning as an outsourcing partner of choice 105SWOT analysis 106Chapter 11 Johnson Matthey 108Summary 108Company overview 109Business segmentation 109R&D focus 110Financial performance 111Growth strategies 112Johnson Matthey’s Sustainability 2017 initiative 112Strong market position in APIs and contract manufacturing services 112SWOT analysis 113Chapter 12 Evonik Chemicals 116Summary 116Company overview 117Business segmentation 117R&D focus 117Financial performance 118Growth strategies 119Specialty chemicals remain a key focus area for Evonik 119Strong commitment to custom manufacturing business 120SWOT analysis 121Chapter 13 Other major players 124Boehringer Ingelheim 124Company overview 124Recent financial performance 124Divis Laboratories 125Company overview 125Recent financial performance 126Pfizer CentreSource 127Company overview 127Recent financial performance 127Cambrex 128Company overview 128Recent financial performance 128Fabbrica Italiana Sintetici 129Company overview 129Recent financial performance 130Appendix 131Glossary 131Index 133List of FiguresFigure 2. 1: Fine chemicals and their usage 27Figure 3. 2: BASF SWOT analysis 45Figure 4. 3: Lonza business divisions 49Figure 4. 4: Lonza SWOT analysis 54Figure 5. 5: DSM business focus 58Figure 5. 6: DSM SWOT analysis 62Figure 6. 7: Sumitomo Chemical research laboratories 67Figure 6. 8: Sumitomo Chemical SWOT analysis 71Figure 7. 9: Merck KGaA Chemicals SWOT analysis 79Figure 8. 10: Saltigo SWOT analysis 87Figure 9. 11: Sigma-Aldrich SWOT analysis 95Figure 10. 12: Jubilant Organosys business segmentation 100Figure 10. 13: Jubilant Organosys SWOT analysis 106Figure 11. 14: Johnson Matthey business segmentation 109Figure 11. 15: Johnson Matthey SWOT analysis 113Figure 12. 16: Evonik Chemicals SWOT analysis 121List of TablesTable 2. 1: Global fine chemicals market size, 2009–2015 30Table 2. 2: Leading 10 global fine chemicals companies, 2009 32Table 3. 3: BASF snapshot 40Table 3. 4: BASF financial performance by segment, 2009 43Table 3. 5: BASF chemical sales performance, 2009 44Table 4. 6: Lonza snapshot 48Table 4. 7: Lonza financial performance by operating segments, 2009 51Table 5. 8: DSM snapshot 56Table 5. 9: DSM key launches in 2009 59Table 5. 10: DSM R&D expenditure, 2009 59Table 5. 11: DSM financial performance by segment, 2009 60Table 5. 12: DSM fine chemicals performance by segment, 2009 61Table 6. 13: Sumitomo Chemical snapshot 64Table 6. 14: Sumitomo Chemical financial performance by operating segments, FY 2008 68Table 6. 15: Sumitomo Chemical financial performance during FY 2004–2008 68Table 7. 16: Merck KGaA Chemicals snapshot 74Table 7. 17: Merck KGaA sales performance, 2009 77Table 7. 18: Merck KGaA Chemicals segmentation sales performance, 2009 77Table 8. 19: Lanxess (Saltigo) snapshot 82Table 8. 20: Lanxess financial performance by operating segments, 2009 85Table 9. 21: Sigma-Aldrich snapshot 90Table 9. 22: Sigma-Aldrich financial performance by operating segments, 2009 93Table 10. 23: Jubilant Organosys snapshot 99Table 10. 24: Jubilant Organosys financial performance by operating segments, FY 2009 102Table 10. 25: Jubilant Organosys financial performance during FY 2005–2009 102Table 10. 26: PLSPS revenue distribution by segments, FY 2009 103Table 10. 27: CRAMS revenue distribution by segments, FY 2009 103Table 11. 28: Johnson Matthey snapshot 108Table 11. 29: Johnson Matthey financial performance by operating segments, FY 2008 111Table 12. 30: Evonik Industries snapshot 116Table 12. 31: Evonik Industries financial performance by operating segments, 2009 118Table 12. 32: Evonik Chemicals financial performance by segments, 2009 119Table 13. 33: Boehringer Ingelheim snapshot 124Table 13. 34: Boehringer Ingelheim financial performance by operating segments, 2009 125Table 13. 35: Divis Laboratories snapshot 125Table 13. 36: Divis Laboratories financial performance, FY 2008 126Table 13. 37: Pfizer CentreSource snapshot 127Table 13. 38: Cambrex snapshot 128Table 13. 39: Cambrex segmental revenue, 2009 129Table 13. 40: Fabbrica Italiana Sintetici snapshot 129For more information please visit :http://www. aarkstore. com/reports/The-Top-10-Global-Fine-Chemicals-Companies-Industry-overview-key-trends-growth-strategies-financial-performance-and-SWOT-analysis-48567. html
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