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Article: Penicillin Market Plagued By Overcapacity and Pricing.(Brief Article)(Statistical Data Included)
- Article from:
- Chemical Market Reporter
- Article date:
- March 6, 2000
- Author:
CopyrightCOPYRIGHT 2000 Schnell Publishing Company, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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DSM Anti-Infectives is restructuring to regain margins.
SIGNIFICANT OVERCAPACITY has softened crude penicillin prices in recent years. With prices at an all-time low and no hope of recovery for the near future, producers face dangerously weak margins, which are driving major restructuring in the business.
Penicillin prices began spiraling downward in 1997, following the activation of more fermentation units, mainly in China and some in India. That year, prices plummeted to $12.50 per billion oxford units (BOU) from $19 per BOU in 1996.
Prices then decreased to $11.50 per BOU in 1998 and $9.50 per BOU in 1999. At present, penicillin sells for ...