Fine chemical companies are increasingly shifting their focus toward the development and production of pharmaceutical excipients. To them, these substances are no longer just inert fillers—they represent a growing and lucrative business opportunity.
At the recent annual meeting of the Controlled Release Society in Vienna, leading fine chemical firms actively promoted their products, aiming to convince major pharmaceutical manufacturers to adopt their excipients. These companies emphasized that their materials not only simplify drug production processes but also enhance therapeutic outcomes through improved controlled release mechanisms.
As research advances, the industry’s perception of excipients has evolved. Fine chemical companies have discovered that many traditional chemical products can play critical roles in pharmaceutical formulations. For instance, Gaylord, the world’s largest supplier of dimethyl sulfoxide (DMSO), was originally known for providing DMSO as a solvent for bulk drugs. However, when studies revealed its ability to enhance transdermal drug absorption, Gaylord quickly adapted by producing USP-grade DMSO, even without fully understanding the exact mechanism behind its effectiveness.
To attract customers, some specialty chemical companies have developed new excipients and accompanying formulation technologies, licensing these innovations to pharmaceutical manufacturers. A prime example is Degussa, which built upon its polymer-based excipients to create three distinct technologies ensuring drug release within 24 hours. This shift has transformed Degussa into a drug delivery service provider, moving beyond its traditional role as an excipient supplier. Since introducing this service in 2003, several pharmaceutical companies have shown strong interest in the technology.
However, not all traditional chemical companies are embracing this change. While companies like BASF and Degussa produce high-performance polymers, they have not publicly shared related formulation technologies. A company representative explained that BASF’s existing products already enjoy long-term market acceptance and maturity, so there’s no need to invest in additional technologies. That said, BASF remains attentive to developments in the pharmaceutical excipient sector.
With pharmaceutical excipients and drug delivery technologies becoming increasingly profitable, it’s clear that fine chemical companies will continue to invest heavily in new excipients and innovative delivery systems. Ultimately, pharmaceutical manufacturers stand to benefit the most from these advancements.
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