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GEA launches new filtration pilot plants
Filtration Industry Analyst
FILTRATION IN THE MARKETPLACE Filtration Industry Analyst’s market prospects column will begin to focus in on some of the market segments using filtration equipment. We start this month by looking at the broader issues driving filtration companies’ recent forays into certain markets.
POTABLE WATER ZENON TARGETS CONSUMER WATER MARKET An agreement has been finalised between Zenon Environmental Inc and US-based appliance manufacturer Maytag Corp for the distribution and sale of a Maytag central water filtration system to the consumer residential market in the US. Zenon’s central home water filtration system is already being sold in various stores throughout Canada under the Maytag brand name. A similar distribution system will now be established in the US, using Maytag’s distribution channels. Maytag will also provide installation and maintenance of the units through a service and support organisation. The NSF- (US National Science Foundation) certified Maytag system is installed where water enters the house, and takes advantage of Zenon’s ultrafiltration membranes.
COMMENT The market for household filtration devices that purify potable water is one that an increasing number of filtration companies are looking into. A
potentially large market is obviously attractive, though the challenge is to find an effective route into this market for products – ie establishing an effective distribution method. In the US, there are already several examples of filtration companies aligning themselves with major consumer appliance brands. In return for offering a route to the consumer, the brands use filtration know-how to capitalise on the current consumer demand (not to mention regulatory pressures) for cleaner drinking water. Think of the recent deal between Cuno and US retailer Lowes, (see Filtration Industry Analyst, June 2004, page 1) and now Zenon is getting in on the act through its own agreement with Maytag. ■
PHARMACEUTICAL DRUG R&D SPENDING ON THE INCREASE Filtration and purification companies such as Pall and Millipore could be set to benefit as US drug makers continue to pour cash into drug research and development. Recent figures out from the Pharmaceutical Research and Manufacturers of America (PhRMA) suggest that 2003 R&D spending amongst its members had risen by 7.4% to US$33.2 billion. And with an ageing population driving the development of newer and more advanced drugs and medicines, could this investment be set to continue rising? “As the baby boomers age, continuing to develop new and better
medicines will be essential to maintaining a productive economy; avoiding huge economic burdens for patients, their families and governments; and allowing patients to live more active and independent lives,” PhRMA president and chief excecutive officer (CEO) Alan Holmer said in a statement. This has implications for filtration companies operating in the sector. Millipore, for example, makes purification systems used in drug manufacture. Sales in 2003 rose 14% to US$800 million, and according to analysts polled by Reuters Estimates, revenue this year is expected to be up by almost 11%. And speaking at a recent briefing, Eric Krasnoff, chairman and CEO of Pall, said that the pharmaceutical/biotechnology sector was “filtration intensive and regulatory driven.” This continues to make the sector a particularly attractive proposition for purification and filtration companies.
COMMENT Filtration sources operating within this market segment estimate that it takes up to 70 or 80 filtration steps to obtain a vial of a target drug. So the latest PhRMA figures should be encouraging to the filtration industry; in 2003 35 new medicines were added to the US list of medicines for maintaining health and treating disease. These medicines include 21 new drugs (also called new molecular entities or NMEs), and 14 new biologics. Pall estimates there to be another 507 in advanced clinical trials, many of which could need to use purification techniques in their development and manufacture. ■
FOOD AND BEVERAGE GEA LAUNCHES NEW FILTRATION PILOT PLANTS GEA Filtration has released the latest in its range of membrane filtration pilot plants – models small enough and economical enough for small-scale feasibility testing to small-scale production simulation units. GEA tells us that these are particularly useful for food and beverage filtration techniques but can equally be used in other application areas. (See New Product Developments on page 12.)
COMMENT Consumer demand for nutritious, healthy food continues to grow, even though population demographics as well as market sub-segments are changing (for example, the traditional ‘family’ now cooks less but still wants to ensure a supply of healthy and nutritious foods.) And high-profile health scares – BSE, Salmonella etc – ensure that there is a continued public appetite for a high degree of food safety. This all represents opportunities for filtration, separation and purification companies, according to GEA. Cross-flow membrane filtration techniques, alone or in combination with other technologies, provide opportunities for isolation, purification or concentration of specific and tailored components of food products. Some examples of this include foodstuffs such as milk, fruits, vegetables and grains, as well as meat and poultry products. ■
5
MARKET PROSPECTS
July 2004
FILTRATION IN THE MARKETPLACE Filtration Industry Analyst’s market prospects column will begin to focus in on some of the market segments using filtration equipment. We start this month by looking at the broader issues driving filtration companies’ recent forays into certain markets.
POTABLE WATER ZENON TARGETS CONSUMER WATER MARKET An agreement has been finalised between Zenon Environmental Inc and US-based appliance manufacturer Maytag Corp for the distribution and sale of a Maytag central water filtration system to the consumer residential market in the US. Zenon’s central home water filtration system is already being sold in various stores throughout Canada under the Maytag brand name. A similar distribution system will now be established in the US, using Maytag’s distribution channels. Maytag will also provide installation and maintenance of the units through a service and support organisation. The NSF- (US National Science Foundation) certified Maytag system is installed where water enters the house, and takes advantage of Zenon’s ultrafiltration membranes.
COMMENT The market for household filtration devices that purify potable water is one that an increasing number of filtration companies are looking into. A
potentially large market is obviously attractive, though the challenge is to find an effective route into this market for products – ie establishing an effective distribution method. In the US, there are already several examples of filtration companies aligning themselves with major consumer appliance brands. In return for offering a route to the consumer, the brands use filtration know-how to capitalise on the current consumer demand (not to mention regulatory pressures) for cleaner drinking water. Think of the recent deal between Cuno and US retailer Lowes, (see Filtration Industry Analyst, June 2004, page 1) and now Zenon is getting in on the act through its own agreement with Maytag. ■
PHARMACEUTICAL DRUG R&D SPENDING ON THE INCREASE Filtration and purification companies such as Pall and Millipore could be set to benefit as US drug makers continue to pour cash into drug research and development. Recent figures out from the Pharmaceutical Research and Manufacturers of America (PhRMA) suggest that 2003 R&D spending amongst its members had risen by 7.4% to US$33.2 billion. And with an ageing population driving the development of newer and more advanced drugs and medicines, could this investment be set to continue rising? “As the baby boomers age, continuing to develop new and better
medicines will be essential to maintaining a productive economy; avoiding huge economic burdens for patients, their families and governments; and allowing patients to live more active and independent lives,” PhRMA president and chief excecutive officer (CEO) Alan Holmer said in a statement. This has implications for filtration companies operating in the sector. Millipore, for example, makes purification systems used in drug manufacture. Sales in 2003 rose 14% to US$800 million, and according to analysts polled by Reuters Estimates, revenue this year is expected to be up by almost 11%. And speaking at a recent briefing, Eric Krasnoff, chairman and CEO of Pall, said that the pharmaceutical/biotechnology sector was “filtration intensive and regulatory driven.” This continues to make the sector a particularly attractive proposition for purification and filtration companies.
COMMENT Filtration sources operating within this market segment estimate that it takes up to 70 or 80 filtration steps to obtain a vial of a target drug. So the latest PhRMA figures should be encouraging to the filtration industry; in 2003 35 new medicines were added to the US list of medicines for maintaining health and treating disease. These medicines include 21 new drugs (also called new molecular entities or NMEs), and 14 new biologics. Pall estimates there to be another 507 in advanced clinical trials, many of which could need to use purification techniques in their development and manufacture. ■
FOOD AND BEVERAGE GEA LAUNCHES NEW FILTRATION PILOT PLANTS GEA Filtration has released the latest in its range of membrane filtration pilot plants – models small enough and economical enough for small-scale feasibility testing to small-scale production simulation units. GEA tells us that these are particularly useful for food and beverage filtration techniques but can equally be used in other application areas. (See New Product Developments on page 12.)
COMMENT Consumer demand for nutritious, healthy food continues to grow, even though population demographics as well as market sub-segments are changing (for example, the traditional ‘family’ now cooks less but still wants to ensure a supply of healthy and nutritious foods.) And high-profile health scares – BSE, Salmonella etc – ensure that there is a continued public appetite for a high degree of food safety. This all represents opportunities for filtration, separation and purification companies, according to GEA. Cross-flow membrane filtration techniques, alone or in combination with other technologies, provide opportunities for isolation, purification or concentration of specific and tailored components of food products. Some examples of this include foodstuffs such as milk, fruits, vegetables and grains, as well as meat and poultry products. ■
5
MARKET PROSPECTS
July 2004