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Optimism is returning to the pharma fine chemicals sector, says analyst

By Gareth Macdonald , 31-Oct-2012
Last updated the 31-Oct-2012 at 17:52 GMT

Pharma flight to quality driving fine chemicals sector optimism
Pharma flight to quality driving fine chemicals sector optimism
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The positive impact drug industry demand for quality is having on the fine chemicals sector was evident at industry trade show CPhI last month according to expert Jan Ramakers. 

He told in-Pharmatechnologist.com that – as happened with the agrochemical sector a few years back – pharmaceutical firms once attracted by low-cost suppliers are starting to source in markets where product quality is key.

“The first segment in the fine chemicals area that looked to source from non-traditional areas was agrochemicals and they at some point started to come back to the west…and you are seeing the same thing in Pharma now.

“I think there have been too many issues and glitches with suppliers from Asia…so if you source from Asia alone and you have a quality issue as a pharmaceutical company and you cannot supply your end product…the risk that is associated with that is really high.”

Ramakers believes that this trend, coupled with import laws due come into effect in Europe next year , will benefit manufacturers in the West.

If they [suppliers in Asia] have to get cGMP that is expensive. Forcing them to produce following cGMP or FDA procedures is going to drive their costs up, which is good news for the western suppliers as the competition is going to be on a more level playing field.”

Jan Ramakers Fine Chemical Consulting Group is focused on the analysis of the global markets for fine chemicals, intermediates for the life science industries, and the companies that participate in those markets.

Jan Ramakers established the company in 1999, after having worked in various positions in the fine chemical industry as well as in the consulting business for almost 20 years. For more information visit http://www.jan-ramakers.com/page3.html

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