Acetaminophen     

*Metric tons per year of bulk acetaminophen (N-acetyl-p-aminophenol) or APAP. Both producers operate dedicated plants producing APAP, a white crystalline powder used medicinally as an analgesic (reduces pain) and antipyretic (alleviates fever).

Rhodia purchased BASF's APAP business in November 2001. The deal, however, did not include ownership transfer of the Bishop, Tex., plant where BASF produced its APAP. Thus, the production capacity there – 7,000 metric tons – was removed from the marketplace. BASF Pharma had previously acquired the APAP business from Celanese in 1998.

In October 2000, Mallinckrodt Inc. merged with Tyco International Ltd. to become part of Tyco Healthcare.  The acquisition gave Tyco 30,000 metric tons of APAP capacity in Raleigh, N.C.

Profile last published 7/17/00; this revision 8/4/03.

DEMAND

2001: 34.4 thousand metric tons; 2002: 35.9 thousand metric tons; 2006: 37.7 thousand metric tons, projected. Demand equals production plus imports (2001: 1.8 thousand metric tons; 2002: 2.8 thousand metric tons). Exports are negligible.

GROWTH

Historical (1997 - 2002): 1.8 percent per year; future: 1.2 percent per year through 2006.

PRICE

Historical (1997 - 2002): High $8.55 per kilo, powd., t.l., frt. alld.; low, $8.15 per kilo, same basis. Current: $8.15 to $8.55 per kilo, same basis; direct compression material, $9.00 to $11.00 per kilo, depending on grade.

USES

Analgesic, 100 percent. (A small amount is used as a stabilizer for hydrogen peroxide.)

STRENGTH

Continued consolidations in the APAP business are helping to correct the oversupply situation. There is still a moderate amount of oversupply but with an increasing tendency toward tightness. APAP is used in several popular over-the-counter (OTC) drugs, commanding a 45 percent share of the OTC analgesics business. APAP dominates the market for bulk analgesics, with global consumption nearly 80,000 tons per year. The U.S. accounts for about 40 percent of world demand.

WEAKNESS

Acetaminophen faces competition from aspirin, ibuprofen, naproxen and other over-the-counter analgesics. APAP's market share is largely determined by the marketing efforts of the OTC drug producers, who are collectively playing a zero sum game because of near market saturation.

OUTLOOK

New products such as multi-symptom cold relievers and oral suspensions for children are aiding US acetaminophen growth. New products and combinations, especially with new antihistamines going over the counter should help maintain a modest growth of about 1.2 percent. Overseas, growth is forecasted at 3.5 percent, resulting from improved health care consciousness in third world economies.

HISTORICAL DATA