1. © Copyright 2004 Frost & Sullivan. All Rights Reserved. The European Active Pharmaceutical Ingredients Market Study and Outsourcing Trends Healthcare Group Supplier base suffering from overcapacity and lack of capability differentiation “The European active pharmaceutical ingredients (API) market is presently trying to cope with the price erosions and overcapacity among the manufacturers. The highly competitive market and low-cost competition from Asian manufacturers present major strategic challenges to the API manufacturers. Comprehensive revaluation of the technology and service portfolios has to be done by the suppliers to gain market presence.”

2. © Copyright 2004 Frost & Sullivan. All Rights Reserved. Industry Trends European API market highly fragmented and competitive with global participation Overcapacity among the suppliers, lack of capability differentiation and low-cost competition from Asian manufacturers present strategic challenges Pharmaceutical consolidations and increasing captive production activities Opportunities in niche market such as HPAPIs and biopharmaceuticals The United Kingdom is the largest market in Europe followed by Germany. France and Switzerland are the other major markets while Italy and Spain are showing potential in the generic sector

3. © Copyright 2004 Frost & Sullivan. All Rights Reserved. Key Features Frost & Sullivan Provides: Insights into the European market as well as geographic analysis Drivers, restraints, challenges, and strategic recommendations Market sizing and competitive analysis Market forecasts and opportunity analysis Market share analysis

4. © Copyright 2004 Frost & Sullivan. All Rights Reserved. What We Offer Coverage: Europe Proven methodology encompassing extensive primary and secondary data and research Focused information and strategies that cover business and technology issues Credible data and analysis highlighting industry dynamics Winning strategies to help you create precise business plans

5. © Copyright 2004 Frost & Sullivan. All Rights Reserved. Who Will Benefit? Current Market Participants  Find out how you compare to the competition  Assess current and future drivers and restraints  Determine and exploit new market share opportunities New Entrants  Analyse challenges associated with the industry  Calculate time scales for strategy implementation  Position yourself to capitalise on the market’s unmet needs Investment Community  Analyse long-term strategies of API manufacturers  Determine which participants will outperform the competition  Assess attractiveness of investing in the API market

6. © Copyright 2004 Frost & Sullivan. All Rights Reserved. What’s Included Revenue forecast for the total European active pharmaceutical ingredients market Segment-wise forecast including innovative and generic segments as well as forecasting for therapeutic segments Geographic trends and forecasting analysis for the total API market Regulations New opportunities Market challenges and strategies to overcome those challenges Decision support databases

7. © Copyright 2004 Frost & Sullivan. All Rights Reserved. Key Market Participants Akzo Nobel Pharma Amgen Astrazeneca Avecia Aventis BASF Bayer Boehringer Ingelheim GmbH Bracco SpA Bristol - Myers Squibb Co. Cambrex Chiesi Farmaceutici Clariant GmbH CU Chemie Uetikon GmbH Degussa AG ( Fine Chemicals Division ) Diosynth Dow Contract Manufacturing Services DSM Fine Chemicals DuPont Pharmaceuticals Eastman Fine Chemicals Eli Lilly Ferro Pfanstiehl Glaxo Smith Kline Hickson & Welch Ltd. Honeywell Life Science Hovione FarmaCiencia SA Leo Pharmaceutical Products Lonza Group Ltd. Merck & Co., Inc. Merck KGaA Custom Synthesis and Services

8. © Copyright 2004 Frost & Sullivan. All Rights Reserved. Key Market Participants (Cont’d) Novartis AG Omnichem Orgamol Pfizer Rhodia Rhodia ChiRex Roche Sanofi - Synthelabo Schering - Plough Corp. Schering AG Siegfried Ltd. Solvay UCB Pharma

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