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    Supply Source

    Supply Source: Aceto Corporation: Leveraging a Strong Global Network

    ...

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    07.01.09
    Lake Success, NY-based Aceto Corporation, incorporated in 1947, is a global leader in the sourcing, regulatory support, marketing and distribution of chemically-derived pharmaceuticals, biopharmaceuticals, specialty chemicals and agrochemicals. Recently, the company dedicated itself to the nutraceuticals business, building off the strengths in its other markets to provide the high level of regulatory, marketing and sourcing support the industry needs.

    Len Schwartz, CEO, believes the company is very well positioned to meet current market demands worldwide. "The nutraceuticals side of our business has been developed over many years, expanding recently to make it truly global," he said. "The market for us continues to be strong due to the global nature of this business and the move of regulatory agencies like FDA to regulate nutraceuticals as pharmaceuticals."

    Because of its wide range of expertise and experience, Aceto will continue to do well and grow market share, according to Mr. Schwartz, particularly because it can provide the regulatory support that's needed. "We're not only meeting the requirements of today's regulations, but we're also concentrating on tomorrow's regulatory environment. The 'big guys' are really demanding this level of regulatory support."

    Aceto considers itself a partner in the product development process, helping companies create new applications for existing products. It also offers solutions to production challenges, helps generate marketing programs, and assists with government approvals and compliance.

    Offering insight on some of the current market trends, Ray Bartone, vice president, said the U.S. and European markets are showing healthy growth. France and Germany especially, he said, were not the typical consumers of nutraceuticals, until recently. He pointed out that these markets are changing very rapidly in response to consumer demand for nutraceutical products.

    Mr. Bartone went on to say that he's noticing a lot of interest in the specialty sector too, especially for products that benefit quality of life, as well as more specific health areas like cognitive function, joint health and cardiovascular health.

    In terms of the market's quality issues, Mr. Bartone offered, "I think as the industry evolves companies will require the detailed work and steps that need to be taken to make sure quality standards are met. Our quality standards in the nutraceuticals industry mirror the level of quality we employ in our pharmaceutical business."

    Aceto constantly monitors its suppliers through a strong audit program. It will even walk into a company's facility unannounced and refuse to work with any supplier that doesn't meet its standards. In this way, Mr. Bartone said, "We feel we are really raising the bar in terms of quality."

    Mr. Schwartz considers Aceto an attractive company, primarily because of its visibility, transparency and healthy sales. With regard to the latter, the company is presently generating about $350 million in sales. And while nutraceuticals only represents 10% of the business today, he hopes that will change in the future. "We'd like to be up more than 10% quarter over quarter," Mr. Schwartz said.

    And that's certainly possible, as Mr. Bartone predicted a bright future for this particular sector due to strong consumer demand for healthy living.-R.W.

    Aceto Corporation
    One Hollow Lane
    Lake Success, NY 11042
    Telephone: 516-627-6000
    E-mail: aceto@aceto.com
    Website: www.aceto.com

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