Issue 1, April 2005
ROW2
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"ROW2's
RouteDesign report gave us novel synthetic routes suitable for commercial scale that we had not considered before, and therefore, added to our team's knowledge. We would definitely use this service again."
---------------------------- "The three-molecule trial was a success. As a matter of fact, we are practicing some of the chemistry from two of the trial RouteDesigns in our laboratories today." ---------------------------- "We have been more than pleased with the service ROW2
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| Read about the Author: Ravi Raghavan, here. |
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Thanks to the contributor:
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ROW2 News
SmartChem™ is one of the most widely accepted information software developed by ROW2. For 2005 our focus for SmartChem™ will be enrichment of the database and value addition for all our esteemed customers through various programs designed to benefit their business. “2005 Activity Plan” at a glance:
---------------------------------------------------------------------- The global fine chemicals industry has been facing taxing times for the last few years, thanks to the less than anticipated demand from the pharmaceuticals industry - the major customer for the business - and the price pressures brought on by the emergence of Asian producers, notably from India and China. Fine chemical producers globally are usually part of integrated chemical or pharmaceutical companies and seldom report the earnings and profitability of the segment independently. Consequently, the performance of this business is not always transparent, making it difficult to justify claims of performance (or the lack of it) on firm numbers. Attempts to rank the companies on sales… Read more here. ---------------------------------------------------------------------- ---------------------------------------------------------------------- Attempts to rank the companies on sales also does not make much sense - as some companies are 'pure players' dealing only with advanced intermediates and active substances; While some companies also include formulations, commodity chemicals and specialty chemicals in the fine chemicals business unit. A recent analysis by Dr. Peter Pollak, a Swiss consultant, provides a snapshot of the H1 2004 performance of 12 major fine chemical companies, with sales in excess of 200-mn each. The analysis reveals that the agony of the twelve companies continued into the first half of the year, in spite of hopes about a year ago that things could only get better. Out of the twelve companies analysed, only two, Avecia Pharma and the DSM Pharma Chemicals unit of DSM Pharmaceutical Products, reported improved results in H1 2004, as compared to H1 2003. All other companies suffered from declining revenues. An interesting conclusion that Dr. Pollak has arrived at from his analysis is that companies that are active in fine chemicals for non-pharma markets, such as agrochemicals and electronics, as well, generally fared better than their more focused competitors, who placed all their eggs in the pharma basket. The unsatisfactory performance does not come as a surprise. Restrained demand from the pharmaceutical industry, which is now faced with the twin challenge of reigning in R&D costs for new drug development, even while increasing the flow of drugs through the research pipeline, has saddled the fine chemicals industry with poor operating ratios and attendant poor margins. The delay in approvals for new drugs by regulatory authorities, especially in the US, has resulted in sluggish demand for new APIs and their intermediates. According to Dr. Pollak, the silver lining is the rapid growth anticipated for bio-pharmaceuticals, which is expected to drive demand for 'big molecules'. Not all companies are geared to take on the challenge: according to Dr. Pollak, the ones most likely to benefit from the trend are Avecia, Boehringer-Ingelheim, DSM and Lonza. Recovery in the global fine chemicals industry, a significant portion of which is in Europe, for traditional reasons, still seems to be elusive for almost all of the major players, with few exceptions. ----------------------------------------------------------------------
About the author: He also heads the team of researchers that provide market assessment and entry-level strategies for companies looking to invest in the Indian chemical industry. Mr. Ravi has very successfully organized the Chemical Weekly ChemExpo India 2001 and Chemspec India 2005 - two international exhibitions for the fine chemicals industry. He has received his Bachelor of Science (Technology) from Bombay UCDT in India and his M.S. in Polymer Science from Drexel University in Philadelphia, USA. ----------------------------------------------------------------------
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DISCLAIMER: The views and opinions submitted in the "Featured article" and "My Forum" sections are those of the contributors and do not state or reflect those of ROW2 Technologies, Inc. ROW2 neither takes responsibility nor vouches for the views expressed therein.
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