Fine chemicals upturn delayed

According to a new study, the market for pharmaceutical fine chemicals will remain static until next year, and overcapacity will remain a problem for some time. The study, by London-based Urch Publishing, found some positive news on drug approvals: As more new products are coming through, outsourcing of intermediates and active pharmaceutical ingredients will pick up. However, the market is unlikely to recover to previous levels. The study does predict annual growth of at least 5% for the next few years in a market estimated at anywhere from $10 billion to $12 billion per year. Overcapacity, currently at 25% to 40%, will remain a problem, causing poor profits, plant closures, and goodwill write-offs.