The Top 10 Global Fine Chemicals Companies: Industry overview, key trends, growth strategies, financial performance, and SWOT analysis

The history of the fine chemicals industry dates back				Business segmentation 57
to the late 18th century, when the early chemical				R&D focus 58
industry was evolved from natural dyes and				Financial performance 60
explosives into modern pharmaceutical products.				Growth strategies 61
However, by the end of the 19th century, the				Increasing R&D activity in emerging markets 61
commercial production of branded pharmaceuticals				Microreactors: a new technology for pharmaceutical
flourished in Europe (especially in Germany, as many				production 61
of the active pharmaceutical ingredients were				SWOT analysis 62
produced in this country).				Chapter 6 Sumitomo Chemical 64
Fine chemicals are generally produced on a large				Summary 64
scale, which can be measured in thousands of tonnes				Company overview 65
per year for certain food additives and drug				Business segmentation 65
intermediates. Fine chemicals manufacturing is typically				R&D focus 66
carried out in batch processes, with synthesis being				Financial performance 67
followed by separation and purification steps.				Growth strategies 69
Pharmaceuticals has always been the largest market				Strong progress in major R&D projects 69
for the fine chemicals industry. Moreover, it is likely that				Pursuing a new strategy of creative hybrid chemistry
pharmaceutical intermediates will account for over				69
two-thirds of the fine chemicals market by 2012.				Strong response to the EU's REACH legislation for
Although the number of fine chemicals companies				chemicals 69
involved in the manufacture of high potency APIs				Creation of next-generation chemical safety
(HPAPIs) has historically been limited, the segment has				information management database 70
attracted more companies recently.				SWOT analysis 71
Profitability levels have fallen for many fine chemical				Chapter 7 Merck KGaA Chemicals 74
companies in recent years. However, the recent focus				Summary 74
on biopharmaceutical products holds promise for this				Company overview 75
industry in the future. For instance, many of the larger				Business segmentation 75
fine chemicals players have invested in biotechnology,				R&D focus 76
either through self-funded R&D programs or				Financial performance 76
through alliances and partnerships.				Growth strategies 77
Key features of this report				Merck KGaA and Millipore partnership for specialty
• Overview of the global fine chemicals market				products 77
• Market dynamics and profitability of the global fine				New pharmaceutical production plant to increase
chemicals market				Merck KGaA's capacity in
• Detailed profiles of the leading 10 players in the				Germany 78
global fine chemicals market				Stronger presence in India through acquisition of
• Key partnerships and M&A activities in the				Bangalore Genei 78
fine chemicals sector				Merck Serono to build its R&D operations in China
• Key trends and opportunities in the global fine				78
chemicals market				SWOT analysis 79
Scope of this report				Chapter 8 Lanxess (Saltigo) 82
• Develop insights into the global fine chemicals				Summary 82
market, including pharmaceutical intermediates,				Company overview 83
agrochemical intermediates, flavors and fragrances,				Business segmentation 83
dyes, and others				R&D focus 84
• Build knowledge of key partnerships and				Financial performance 84
M&A activities that are shaping the future of the				Growth strategies 85
global fine chemicals industry.				Expansion in BRIC countries 85
• Understand the major issues affecting the global				Advanced Intermediates segment 86
fine chemicals industry.				Custom manufacturing 86
• Assess the competitive landscape of the global				SWOT analysis 87
fine chemical industry.				Chapter 9 Sigma-Aldrich 90
Key Market Issues				Summary 90
• Increasing demand for HPAPIs: HPAPIs are very				Company overview 91
effective in treating diseases at low dosage; however,				Business segmentation 91
the production of such potent compounds requires				R&D focus 92
significant investment. Thus, many companies are also				Financial performance 92
differentiating their products from their competitors				Growth strategies 93
through specialized technologies and demonstrated				Strong focus on emerging markets 93
expertise. The growth in demand for HPAPIs, primarily				Partnerships and alliances 94
in cancer therapies, is expected to increase its sales in				Targeting the high-growth biology segment 94
the near future. Additionally, the ability to increase life				SWOT analysis 95
expectancy among cancer patients will also drive the				Chapter 10 Jubilant Organosys 98
demand for HPAPIs in coming years.				Summary 98
• Relocation to emerging and fast growing markets:				Company overview 99
Managing and rationalizing existing assets in the EU				Business segmentation 100
and investing in new facilities in emerging and fast				R&D focus 101
growing markets has been a key trend in the fine				Financial performance 101
chemicals sector recently. Growth in Western Europe				Growth strategies 104
started to slow in recent years, making Asia (mainly				Integrated business model 104
China and India) and Latin American countries the new				Strong R&D and manufacturing services for
growth markets for the fine chemicals industry.				intermediates and APIs 104
• Advanced technologies: Recently, many of the				Positioning as an outsourcing partner of choice 105
leading pharmaceutical and fine chemicals				SWOT analysis 106
manufacturers have started to focus on small-scale				Chapter 11 Johnson Matthey 108
complex products, an area where advanced				Summary 108
technologies are required. For example, in June 2009,				Company overview 109
Italian fine chemicals company Endura announced that				Business segmentation 109
it would commercialize a technology that encapsulates				R&D focus 110
insecticide into very small crystals. The encapsulation				Financial performance 111
delays the release of insecticides, thus enabling an				Growth strategies 112
enzyme inhibitor to disable the enzymes that insects				Johnson Matthey's Sustainability 2017 initiative 112
use to block pesticides. Moreover, Endura will also				Strong market position in APIs and contract
promote the concept of microencapsulated piperonyl				manufacturing services 112
butoxide (PBO, a naturally occurring synergist) in				SWOT analysis 113
agriculture throughout the world in collaboration with				Chapter 12 Evonik Chemicals 116
strategic partners.				Summary 116
Key findings from this report				Company overview 117
• The pharmaceutical industry has always been the				Business segmentation 117
largest market for the fine chemicals industry. Although				R&D focus 117
the number of fine chemicals companies that are				Financial performance 118
developing high-potency APIs has been limited, this				Growth strategies 119
segment has attracted many companies in recent				Specialty chemicals remain a key focus area for
years.				Evonik 119
• Fine chemicals players with significant exposure to				Strong commitment to custom manufacturing business
the generics segment are likely to face pressure on				120
their profitability levels in the near future. However, the				SWOT analysis 121
recent shift in focus toward biopharmaceutical				Chapter 13 Other major players 124
products will expand the margin of this industry in				Boehringer Ingelheim 124
coming years.				Company overview 124
• Agrochemical intermediates represent the second				Recent financial performance 124
largest category among fine chemicals (after APIs),				Divis Laboratories 125
the majority of which are used in the manufacture of				Company overview 125
pesticides, herbicides, insecticides, fungicides, and				Recent financial performance 126
fumigates.				Pfizer CentreSource 127
• Outsourcing has become a key trend in this				Company overview 127
industry, fueled by the growing importance of				Recent financial performance 127
biopharmaceutical and virtual pharma companies in				Cambrex 128
low-cost destinations such as Asia. Outsourcing from				Company overview 128
biotech and pharmaceutical companies will strengthen				Recent financial performance 128
the custom manufacturing industry in India and China.				Fabbrica Italiana Sintetici 129
• BASF is one of the leading chemical producers in				Company overview 129
the world, with significant exposure in fine chemicals.				Recent financial performance 130
With a presence in over 80 countries, BASF is one of				Appendix 131
the leading suppliers of chemical intermediates to the				Glossary 131
plastic, automobile, agriculture, and pharmaceutical				Index 133
industries.				List of Figures
Key questions answered				Figure 2.1: Fine chemicals and their usage 27
• What are the key trends of global fine chemicals				Figure 3.2: BASF SWOT analysis 45
industry?				Figure 4.3: Lonza business divisions 49
• Which are the leading players in the global fine				Figure 4.4: Lonza SWOT analysis 54
chemical market?				Figure 5.5: DSM business focus 58
• Which companies will drive the future of the global				Figure 5.6: DSM SWOT analysis 62
fine chemicals market?				Figure 6.7: Sumitomo Chemical research laboratories
• What are the key strengths, weaknesses, threats,				67
and opportunities for the leading fine chemicals				Figure 6.8: Sumitomo Chemical SWOT analysis 71
players?				Figure 7.9: Merck KGaA Chemicals SWOT analysis 79
• How has the financial performance of leading				Figure 8.10: Saltigo SWOT analysis 87
players in the global fine chemicals market faired				Figure 9.11: Sigma-Aldrich SWOT analysis 95
through the recent economic downturn?				Figure 10.12: Jubilant Organosys business segmentation
• Which companies are best positioned to succeed				100
in the global fine chemicals market during 2009–14?				Figure 10.13: Jubilant Organosys SWOT analysis 106
Table of Contents :				Figure 11.14: Johnson Matthey business segmentation
The Top 10 Global Fine Chemicals Companies				109
Executive summary 12				Figure 11.15: Johnson Matthey SWOT analysis 113
Industry overview 12				Figure 12.16: Evonik Chemicals SWOT analysis 121
BASF 13				List of Tables
Lonza 13				Table 2.1: Global fine chemicals market size,
DSM 14				2009–2015 30
Sumitomo Chemical 14				Table 2.2: Leading 10 global fine chemicals companies,
Merck KGaA 15				2009 32
Lanxess (Saltigo) 16				Table 3.3: BASF snapshot 40
Sigma-Aldrich 16				Table 3.4: BASF financial performance by segment,
Jubilant Organosys 17				2009 43
Johnson Matthey 17				Table 3.5: BASF chemical sales performance, 2009 44
Evonik Chemicals 18				Table 4.6: Lonza snapshot 48
Chapter 1 Introduction 20				Table 4.7: Lonza financial performance by operating
What is this report about? 20				segments, 2009 51
Methodology 20				Table 5.8: DSM snapshot 56
Chapter 2 Industry overview 24				Table 5.9: DSM key launches in 2009 59
Summary 24				Table 5.10: DSM R&D expenditure, 2009 59
Fine chemicals – an overview 25				Table 5.11: DSM financial performance by segment,
Different types of fine chemicals 26				2009 60
Pharmaceutical intermediates 27				Table 5.12: DSM fine chemicals performance by
Agrochemical intermediates 28				segment, 2009 61
Flavors and fragrances 28				Table 6.13: Sumitomo Chemical snapshot 64
Dyes and others 29				Table 6.14: Sumitomo Chemical financial performance
Market dynamics 29				by operating segments, FY 2008 68
Size and structure 29				Table 6.15: Sumitomo Chemical financial performance
Profitability 30				during FY 2004–2008 68
Competitive landscape 30				Table 7.16: Merck KGaA Chemicals snapshot 74
Manufacturing standards and their potential benefits 32				Table 7.17: Merck KGaA sales performance, 2009 77
Potential benefits of the guideline 33				Table 7.18: Merck KGaA Chemicals segmentation
Key partnerships and M&A activity in the fine				sales performance, 2009 77
chemicals sector 34				Table 8.19: Lanxess (Saltigo) snapshot 82
Key trends 35				Table 8.20: Lanxess financial performance by
Advanced technologies 35				operating segments, 2009 85
Increasing demand for HPAPIs 35				Table 9.21: Sigma-Aldrich snapshot 90
Relocation to emerging and fast growing markets 36				Table 9.22: Sigma-Aldrich financial performance by
Increasing use of biotechnology and nanotechnology				operating segments, 2009 93
36				Table 10.23: Jubilant Organosys snapshot 99
Chapter 3 BASF 40				Table 10.24: Jubilant Organosys financial performance
Summary 40				by operating segments, FY 2009 102
Company overview 41				Table 10.25: Jubilant Organosys financial performance
Business segmentation 41				during FY 2005–2009 102
R&D focus 42				Table 10.26: PLSPS revenue distribution by segments,
Financial performance 42				FY 2009 103
Growth strategies 44				Table 10.27: CRAMS revenue distribution by segments,
Leading supplier of chemical intermediates 44				FY 2009 103
Verbund, an innovative approach 44				Table 11.28: Johnson Matthey snapshot 108
Diversified product portfolio 45				Table 11.29: Johnson Matthey financial performance by
SWOT analysis 45				operating segments, FY 2008 111
Chapter 4 Lonza 48				Table 12.30: Evonik Industries snapshot 116
Summary 48				Table 12.31: Evonik Industries financial performance by
Company overview 49				operating segments, 2009 118
Business segmentation 49				Table 12.32: Evonik Chemicals financial performance by
R&D focus 50				segments, 2009 119
Financial performance 51				Table 13.33: Boehringer Ingelheim snapshot 124
Growth strategies 52				Table 13.34: Boehringer Ingelheim financial performance
Chemical manufacturing strengthens Lonza's				by operating segments, 2009 125
technology platform 52				Table 13.35: Divis Laboratories snapshot 125
Partnership with biopharmaceutical and chemical				Table 13.36: Divis Laboratories financial performance,
companies 52				FY 2008 126
SWOT analysis 54				Table 13.37: Pfizer CentreSource snapshot 127
Chapter 5 DSM 56				Table 13.38: Cambrex snapshot 128
Summary 56				Table 13.39: Cambrex segmental revenue, 2009 129
Company overview 57				Table 13.

GlencoMetrics

The Top 10 Global Fine Chemicals Companies: Industry overview, key trends, growth strategies, financial performance, and SWOT analysis

Articles