BCC Research Report Indicates Global Market for Excipient Chemicals Worth $4.3 Billion by 2011.

WELLESLEY, Mass. -- According to a new technical market research report, EXCIPIENTS IN PHARMACEUTICALS (PHM010E) from BCC Research (www.bccresearch.com), the global market for excipient chemicals was worth $3.5 billion in 2006. This is expected to increase to over $4.3 billion by 2011, for a compound annual growth rate (CAGR) of 3.8%.

The market is broken down into applications of organic, inorganic and United States Pharmacopeia (USP) water chemicals. Of these, organic chemicals have the largest share of the market. Valued at nearly $3.1 billion in 2006, this segment is expected to be worth $3.7 billion by 2011, a CAGR of 3.8%.

The second largest segment, inorganic chemicals, was worth an estimated $363 million in 2006 and will reach $434 million by 2011. USP water was a $68 million segment in 2006 that will be worth $89 million in 2011, a CAGR of 5.4%.

Excipients perform definite and important functions that enhance the efficacy of the active pharmaceutical ingredients (APIs) in a finished product. The pharmaceutical industry is refining the physical structure of APIs and is designing them with more functionality. In some cases, the refinements will mean that fewer excipients are needed; in others, corresponding changes will occur with the functional categories, where some will become more prominent and some will decline. Refinements in APIs, for example, have brought about a downward shift for binders, which were once widely used.

Advanced techniques also can affect the level of excipient usage. Nanocoatings, for example, reduce the amount of lubricants needed and do away with the need for wet granulation and compacting. Neither the API refinements nor the advanced techniques should have as pronounced an effect in the next 5 years as they will over the next decade.

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