Generic Agrochemical Companies Report Growth in 2010

The global market for crop protection products increased to $38.3 billion in 2010, up 1.2% from previous year’s figures of $37.8 billion, according to a report by Phillips McDougall.

Report estimates show 23.5% of agrochemical sales in 2010 were attributed to patented products, and 76.5% were due to off-patent products.

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When based on company sales analysis, generic companies actually make up 30.1% of total sales, and 69.9% of industry sales can be attributed to R&D driven companies, not only with patented molecules (23.5%), but 46.4% of product sales are off-patent and hold proprietary off-patent or generic status, according to Phillips McDougall.

This set of data indicates that R&D driven companies are providing greater influence in the generic sector of the agrochemical market.

The top five generic companies reported varying degrees of growth in 2010, with Makhteshim Agan (MAI) leading the pack. The company saw a 6.8% growth in 2010 with sales of $2.18 billion, up from $2 billion the previous year.

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Nufarm’s agrochemical sales increased 10% to reach $2 billion in 2010, the most out of the top five companies.

Generic company transactions in 2010

Cheminova purchased Isagro’s dimethoate business.
• Makhteshim acquired the Mexican company BravoAg and also took 51% ownership of the Korean company JK Inc.
United Phosphorus obtained DuPont’s non-mixture mancozeb assets and the US-based rice agrochemical distributor RiceCo.

Glyphosate value continued to drop in 2010. An oversupply of glyphosate in the past two years has caused prices to fall, according to Phillips McDougall.

Despite this loss of value, the share of sales due to generic products continue to increase.

Nine new active ingredients entered the market in 2010. There are currently 37 active ingredients in the development pipeline with introduction expected within the next five years.

The patent market lost share in 2010 despite new product introductions such as chlorantraniliprole. However, azoxystrobin’s patent expiry hindered further growth.

In dollar terms, the sum of sales of proprietary products fell by 5.7% in 2010 and proprietary off-patent by 4.5%. The value of the generic market increased 7.7%, according to Phillips McDougall.

Stefanie A. Toth, Content Editor

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