InterviewControlled substances shine in tough API market

17 February 2010 22:48  [Source: ICIS news]

By Al Greenwood

SAN FRANCISCO (ICIS news)--Controlled substances were one of the few sectors among active pharmaceutical ingredients (APIs) that could see rising sales, the CEO of Cambrex said on Wednesday.

Competition has continued to weaken pricing power among generic API producers, said Steven Klosk, CEO of Cambrex, a US company that produces APIs and pharmaceutical ingredients. Klosk was speaking on the sidelines of the InformexUSA conference in San Francisco.

India, already a strong player, could soon be joined by China, Klosk said.

However, those countries are essentially locked out of the US market for controlled substances, drugs that are regulated by the US Drug Enforcement Administration (DEA) because of their potential for abuse.

Government regulations substantially limit which companies can produce controlled substances, Klosk said.

For example, regulations ban imports if a domestic producer exists, he said. As a result, low-cost producers are locked out of large parts of the market.

Other regulations production quantities and chances for proliferation, Klosk said. Laws call for vaults and methods to limit any proliferation.

Cambrex is experienced with both the regulations and chemistry behind the controlled substances, Klosk said. Indeed, higher revenues from controlled substances helped boost the company’s sales in the third quarter.

The company’s experience, Klosk said, should help drive controlled substance sales in 2010.

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By: Al Greenwood
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