Analysis of the Oral Solid Drug Dosage Excipients MarketPresentation Transcript
Analysis of the Oral Solid Drug Dosage Excipients MarketKey Blockbuster Drugs Patent Expiration is Expected to BoostExcipient Market GrowthNorth AmericaNC51-39April 2013
2NC51-39Research TeamNandhini RajagopalSenior Research AnalystChemicals, Materials, and FoodsLead Analyst Research ManagerShomik MajumdarVice President-ConsultingChemicals, Materials and FoodsJeannette GarciaCorporate CommunicationsChemicals, Materials and Foodsfirstname.lastname@example.orgFor more information:
4NC51-39ContentsSection Slide NumbersOthers Segment Break down 190The Last Word (Conclusions and Implications) 200Appendix 203
6NC51-39Executive SummarySource: Frost & Sullivan analysis.• The North American oral solid drug dosage excipient market generated a revenue of$1193.4 million in 2012. Revenue is expected to increase to $1708.9 million in 2019, ata compound annual growth rate (CAGR) of 5.4 percent from 2012 to 2019.• Binders and fillers segment held the highest market share in terms of revenue (47.6percent in 2012).• In 2012, super-disintegrants accounted for a 4.3 percent market share in terms ofrevenue; they are expected to grow the fastest, at a CAGR of 6.3 percent from 2012 to2019.• The market is driven by high patent expiries during the forecast period, which isexpected to intensify the demand from pharmaceutical formulators. However, import ofgenerics from low cost countries hinders growth.• The market for total solid drug dosage excipient market is highly fragmented, as keyparticipants differ for each chemistry.• The key market participants includes, Colorcon Inc., Ashland, FMC Biopolymers, JRSPharma, DMV Fonterra, Roquette, Meggle, Gelita, J.M Hubber, and Dow WolffCellulosics.
7NC51-39Forecast PeriodMarket GrowthRate5.4 %(CAGR, 2012-2019)Number ofCompetitors45–50Executive Summary—Market Engineering MeasurementsMarket StageGrowthMarket Revenue$1193.4 M(2012)MarketUnits/Volume258,705.1tons(2012)Average PricePer Unit/Kg$4.6Market Size forLast Year ofStudy Period$1708.8M(2019)Base YearMarket GrowthRate4.8%Customer PriceSensitivity6(scale:1 [Low] to 10 [High])Degree ofTechnicalChange7(scale:1 [Low] to 10 [High])Total Oral Solid Drug Dosage Excipient Market: North America, 2012Market OverviewFor a tabular version click here.Stable IncreasingDecreasingNote: All figures are rounded. The base year is 2012. Source: Frost & Sullivan analysis.(active market competitors inbase year)
8NC51-39Executive Summary—CEO’s Perspective2By establishing a partnership, suppliers areencouraged to offer value added services interms of payment options and timeline, price,quality, and supply consistencies.3For the vast commoditized excipient volume,the supplier needs to focus on competitivepricing and value addition4Loss of exclusivity of a drug opens up newopportunities for drug manufacturers. Thisincreases the volume of drug sales,subsequently increasing the excipient sales.1Focusing on high margin segments likecoating polymers, co-processed excipients,coating systems, and super disintegrants toincrease profit.Source: Frost & Sullivan analysis.
9NC51-39Market Overview—Definitions• This research service covers the North American oral solid drug dosage excipients market. Basedon their functionality, excipient are segmented as binders & fillers, disintegrants, coatings, flavors,colors, sweeteners, glidants, adhesives, lubricants and others.• Units are defined in terms of tons. Unit shipment forecasts are based on the volume of excipientsused in oral solid drug dosage formulations.• Base year for the study is 2012 with a market history since 2009 and forecasts up to 2019.• Average prices are presented in U.S. dollars. Average price is, weighted average price of itssegments.• Revenue is defined as manufacturers revenue (BASF, JRS Pharma, Ashland, etc.), which impliessales derived through selling excipients for pharmaceutical companies (Pfizer Inc., Novartis AG,GlaxoSmithKline plc., AstraZeneca, Sanofi-Aventis).Source: Frost & Sullivan analysis.
12NC51-39Market Overview—Key Questions This Study Will AnswerKey factors driving and restricting growth in this market?At what stage in the lifecycle is the market and how is it expected to grow?Major participants in the market and their market shares?Market forecast by segments?Key competitive factors driving this market?Which segments are poised to grow in future?Source: Frost & Sullivan analysis.
13NC51-39MEASUREMENT NAME MEASUREMENT TRENDMarket Stage Mature —Market Revenue (2012) $1193.4M ▲Market Units/Volume (2012) 258,705.1 TAverage Price Per Unit $4.6 ▲Market Size for Last Year of Study Period (2019) $1708.8 ▲Base Year Market Growth Rate 4.8% ▲Forecast Period Market Growth Rate (CAGR, 2012-2019) 5.4% —Customer Price Sensitivity (scale of 1 to 10, Low to High) 6 ●Degree of Technical Change (scale of 1 to 10, Low to High) 7 ▲Number of Competitors (active market competitors in base year) Approximately 45-50 ●Market Engineering MeasurementsTRENDDecreasing Stable IncreasingTotal Oral Solid Drug Dosage Excipients Market: North America, 2012Market OverviewNote: All figures are rounded. The base year is 2012. Source: Frost & Sullivan analysis.
14NC51-39Market Overview—SegmentationBinders and Fillers,47.6%Coatings, 26.6%Flavors and Colors,6.3%Sweeteners, 5.8%Disintegrants, 4.3%Preservatives,2.8%Glidants,Lubricants, andAnti-adherents2.1%Others, 4.5%Revenue Percent Sales BreakdownTotal Oral Solid Drug Dosage Excipients Market: North America, 2012Note: All figures are rounded. The base year is 2012. Source: Frost & Sullivan analysis.Others* include buffers andadsorbents
15NC51-39Total Oral Solid Drug Dosage Market —Value ChainSupplier of excipientssuch as binders,disintegrants,sweeteners.Key Participants• FMC Biopolymer• Dow WolffCellulosic• JRS PharmaManufacturer ofcoating systems.Key Participants• Colorcon Inc.,• AshlandSpecialties• SeppicDistributorsKey Participants• MutchlerChem• Biddle SawyerCorpPharmaceuticalcompanies (endusers)Key Participants• Pfizer• MerckCommoditized and specialized productswith technical servicesCoating raw materials forspecialized coating systemsTotal Oral Solid Drug Dosage Market: North America, 2012
16NC51-39Industry ChallengesSource: Frost & Sullivan analysis.Total Oral Solid Drug Dosage Excipient Market : Key Industry Challenges , NorthAmerica, 2013-20193-4 years1-2 yearsChallenges 5-7 yearsLow Return on InvestmentIncreasing Commoditization of Products
17NC51-39Drivers and RestraintsOral Solid Drug Dosage Market: Key Market Drivers and Restraints, North America, 2013-2019Source: Frost & Sullivan analysis.Regulatory issues leading to decrease in domesticmarket growthNew product development barriers slows the pace ofdevelopmentLow-cost competition from emerging marketsinhibits market growth1-2 years 3-4 years 5-7 yearsSeveral key block buster drug patent expirations isexpected to boost excipient market growthMultifunctional excipients are accelerating marketgrowthGrowth in controlled and sustained releasecoatings drives the marketMarketDriversMarketRestraintsImpact: High Medium Low