A BASF spokeswoman told in-Pharmatechnologist.com that the decision to increase prices is a necessary response to growing raw material, energy and labour costs.
She explained that: “BASF depends on various raw materials and hence various suppliers. Such raw material prices are influenced by supply and demand, energy cost and to an increasing portion labour.”
The spokeswoman declined to say how customers have reacted to the price changes, explaining that she “cannot comment on ongoing negotiations.”
The price increases, which came into effect on Friday last week, covers excipients like the pill coating product Kollicoat, the binder Kollidon and the widely-used solubilisation compounds Cremophor and Lutrol.
They also impact BASF’s entire active pharmaceutical ingredient (API) portfolio, which includes compounds like caffeine, ibuprofen, pseudoephedrine and theophylline.
At this stage it is unclear if the increases will impact either the coating-colour focused partnership BASF formed with X-Rite in March or the excipient distribution deal it signed with Sigma-Aldrich in February.
In a press statement the Germany-based firm said it intends to honour all existing API and excipient supply contracts.
The move is also part of wider programme price increases, which also saw BASF increase what it charges for its range of ‘nature-identical’ carotinoid ingredients for human and animal nutrition products by 12 per cent.
Both ingredients businesses are part of BASF’s health and nutrition unit, which generated revenue of €1.48bn in 2010 up some €144m on the previous 12 months thanks to what the firm described as ‘robust demand.’
BASF’s decision to increase prices for drug ingredients and excipients follows just a few months after it acquired fellow pharmaceutical excipient maker Cognis for €3.1bn.
At the time BASF said that the acquisition was motivated by a desire to “strengthen its leading position in value-added products for home care, establish a strong position in human nutrition and further strengthen its position in pharma excipients.”