Acetylsalicylic Acid    

* Millions of pounds per year of o-acetylsalicylic acid (aspirin).

Rhodia, the leading global aspirin producer, closed the last remaining acetylsalicylic acid plant in the U.S. in February of this year, eliminating 20 million pounds of annual capacity. The company maintains aspirin production units at Saint Fons, France, and Bangpoo, Thailand.

In 2001 Procter & Gamble Pharmaceuticals (P&GP) sold its North Norwich, N.Y., manufacturing facility to Outsourcing Services Group Inc. (OSG) of Allendale, N.J. The site had a production capacity of 4 million pounds per year of acetylsalicylic acid. OSG continues the production of prescription drugs for P&GP, but production of aspirin was ceased.

Profile last published 8/7/00; this revision, 8/18/03.

DEMAND

2001: 23.8 million pounds; 2002: 23.9 million pounds; 2006: 24.3 million pounds, projected. Demand equals production plus imports (2001: 6.2 million pounds; 2002: 6.8 million pounds) less exports (2001: 0.9 million pounds; 2002: 0.9 million pounds).

GROWTH

Historical (1997 - 2002): 0.4 percent per year; future: 0.4 percent per year through 2006.

PRICE

Historical (1997 - 2002): High, $3.70 per pound, list, USP, cryst., 250-lb. dms., c.l., dlvd.; low, $3.60 per pound, same basis. Current: $3.90 per pound, same basis.

USES

Nearly all aspirin previously made or imported into the U.S. is used in aspirin tablets or in conjunction with other analgesic or antipyretic agents in pharmaceutical products.

STRENGTH

Aspirin remains a popular drug with 25 percent share of the total OTC analgesic market. In addition to its analgesic and anti-blood-clotting properties, aspirin is also believed to counteract diabetic microangiopathy--one of the complications associated with diabetes. Recent studies suggest that aspirin may even reduce the risk of colon, pancreas, and prostate cancers.

WEAKNESS

The aspirin market is mature and remains oversupplied worldwide. Large, sporadic imports from China occasionally destabilize the market and weaken prices. Aspirin has the number two share position after acetaminophen, but faces competition from ibuprofen, naproxen and other over-the-counter analgesics, including acetaminophen. Aspirin'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

With the discovery of new indications, aspirin may eventually enter a new period of growth. Early studies suggest that anti-inflammatories such as aspirin may delay the onset of Alzheimer's disease and slow it in those diagnosed early. Other possible uses of aspirin are prevention of myocardial infarction, several cancers (colon, pancreas, and prostate) and migraine, and herpes treatment. These applications are considered speculative and only modest growth, 0.4 percent - less than GDP - is projected.

HISTORICAL DATA