Marketing of fine chemicals

ITiis chapter does not introduce new chemical reactions. On the contrary, mainly elementary reactions are employed. The attempt is made here to provide an introduction into the planning of syntheses of simple "target molecules" based upon the synthon approach ofE.J. Corey (1967A, 1971) and the knowledge of the market of "fine chemicals". 

With a year production of 300-500 tons (26), the Cinchona alkaloids (quinine 1 and quinidine 2) probably form one of the largest markets of fine chemicals derived from higher plants. They are extracted from stem and rootbark of Cinchona trees, containing 5-18Z of alkaloid, with an average of about 8X (27). Because of the high demand a number of attempts have been made to develop a commercial synthesis (28 and references cited therein) of the quinoline alkaloids. Although successful syntheses have been reported they could not be commercialized. 

Fine chemicals form a group of products of large variety their number exceeds 10,000. The size of the global fine chemicals market in 1993 was estimated at 42,000 million. The average annual growth in the period 1989-95 was about 4.5 % (Polastro < r a/., 1990). Figure 1.1. shows the division of fine chemicals production by outlet. 

Only 10 firms account for 75% of agrochemicals sales, while the 15 largest drug companies have a market share of only 33% (Stinson, 1995). About 85% of fine chemicals are manufactured by companies of the triad the United States (28%), Western Europe (39%), and Japan (17%). Italy, with 4.0 million litres reactor capacity and 71 manufacturers, topped the European fine chemicals industry (Layman, 1993). Recently India, China, and Eastern-Central European countries have gained a significant proportion of the market, as a result of the lower direct labour costs and the more relaxed environmental and safety standards. It is fair to state that the high quality of chemists in these countries has also contributed to this development. In 1993, the cost of producing fine chemicals in India was 12% below that in Europe (Layman, 1993). 

Table 9.2 Size of Fine-Chemical Markets in Developed Conntries"...

Market share of Fine-Chemical company (10%/100%) 13 million 6 million... 

Batch chemical processes are widely used in the production of fine chemicals, pharmaceutical products, polymers, and many other materials. Moreover, the flexibility of batch processes has become an attractive feature because of the actual turbulence of markets, characterized by a rapidly changing demand. 

Merck had its beginnings in the United States in 1887 as the American marketing branch of one of the leading German producers of fine chemicals. In 1903 this subsidiary introduced the production in Rahway, New Jersey of narcotics, bismuth salts, iodine, and other fine chemicals for the American pharmaceutical industry. During World War I the company turned to the production of coal-tar-based synthetic intermediates, which it had previ-... 

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