Chiral transformations star in latter stages
The shining light of the European pharmaceutical intermediates market is chiral chemistry, according to a new report published by international market consultants Frost & Sullivan. The European Pharmaceutical Intermediates Market Report says that while the sector continues to grow, it is at a much lower rate than the double-digit figure predicted by Deutsche Bank in the 90s.
The pharmaceutical Intermediates market is highly fragmented and overcrowded, but certain areas are showing above-average growth and development rates - and chiral chemistry can clearly be seen as the rising star, says Frost & Sullivan.
'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,' explains Dr Andrew Barton, Frost & Sullivan Research Analyst and author of the report. '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.'
However, in this overcrowded market, the lack of capability differentiation is a significant challenge: many suppliers have built up comprehensive portfolios of technology expertise but it is important that they identify a hook to attract new customers, the report says. 'The market can not sustain the current number of participants,' warns Barton.
He expects to see a spate of M&A activity among 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 alongside chiral transformations will be a significant factor for success in this market,' concludes Barton.