Medical Plastics to 2008

SUMMARY

Demand to reach 3.6 billion pounds in 2008

US demand for medical plastics will increase nearly 3.0 percent per year to 3.6 billion pounds in 2008, valued at $5.0 billion. Strongest advances are expected for engineered resins such as polycarbonate and thermoplastic elastomers, which have favorable cost-performance benefits. Polyvinyl chloride and polypropylene will retain leading positions in non-invasive medical products and standard medical packaging due to their low cost and amenability to radiation sterilization.

Direct contact and critical care devices, such as angioplasty catheters and orthopedic implants, will provide the best opportunities for medical plastics as quality and efficacy concerns outweigh price in raw material selection.

PVC to remain dominant resin

Polyvinyl chloride (PVC) will remain the leading medical plastic due to the resin s low cost, versatility and ease of processing. Continued PVC use is expected in flexible and rigid products and new grades of radiationsterilizable compounds. Polypropylene (PP) use in medical products and packaging will be driven by the material s clarity, barrier strength and radiation resistance benefits.

Below average growth is expected for polystyrene due to competition from PVC, PP and acrylics in transparent labware as well as kit and tray packaging. High density polyethylene will also expand at a slow pace with continued use in applications such as external tubing and pharmaceutical closures. The expanding use of drug blister packs will keep the demand for low density polyethylene advancing steadily. However, competitive challenges from PVC, PP and polyethylene terephthalate will moderate overall growth levels.

Leading engineered plastics include thermoplastic polyester, polycarbonate, thermoplastic elastomers and acrylonitrile- butadiene-styrene. However, the use of high value-added plastics, such as polysulfone and polyetheretherketones, will also increase impressively as medical procedures advance in sophistication.

Medical product component uses to grow the fastest

Medical product components, the leading application for medical plastics, will expand at a faster pace than medical packaging due to steady increases in the number of patient procedures and continuing advances in the sophistication of medical supplies, devices and equipment.

By contrast, medical packaging will remain subject to less extensive government oversight, which together with costcutting actions and environmental pressures for waste source reduction, will promote the wider use of less material-intensive and less expensive container systems.

Study coverage

Details on these and other key findings are available a new Freedonia industry study, Medical Plastics. The study provides historical US demand (1993, 1998 and 2003) data plus forecasts to the years 2008 and 2013 for commodity and engineered medical plastics by resin and market. This study also examines the market environment, details the industry structure and profiles 33 leading US industry participants.

TABLE OF CONTENTS

INTRODUCTION

I. EXECUTIVE SUMMARY

II. MARKET ENVIRONMENT

General

Macroeconomic Overview

Demographic & Household Trends

Health Care Trends

Medical Conditions

Acute Conditions

Chronic Conditions

Health Insurance

National Health Expenditures

Medical Providers

Patient Procedures

Medical Product Shipments

Regulatory Environment

Medical Supplies & Devices

Pharmaceuticals

Sterilization Technology

Pricing Trends

Plastic Outlook

III. OVERVIEW

General

Medical Plastic Overview

International Overview

Medical Product Components

Pharmaceutical Packaging

IV. COMMODITY MEDICAL PLASTICS

General

Applications

Resins

Polyvinyl Chloride

Applications

Medical Product Components

Medical Packaging

Suppliers

Polypropylene

Applications

Medical Packaging

Medical Product Components

Suppliers

Polystyrene

Applications

Medical Packaging

Medical Product Components

Suppliers

High Density Polyethylene

Applications

Medical Packaging

Medical Product Components

Suppliers

Low Density Polyethylene

Applications

Medical Packaging

Medical Product Components

Suppliers

Acrylic

Applications

Medical Product Components

Medical Packaging

Suppliers

Polyurethane & Other

Applications

Medical Product Components

Medical Packaging

Suppliers

V. ENGINEERED MEDICAL PLASTICS

General

Applications

Resins

Thermoplastic Polyester

Applications

Medical Packaging

Medical Product Components

Suppliers

Polycarbonate

Applications

Medical Product Components

Medical Packaging

Suppliers

Thermoplastic Elastomers

Applications

Medical Product Components

Medical Packaging

Suppliers

Acrylonitrile-Butadiene-Styrene

Applications

Medical Product Components

Medical Packaging

Suppliers

Nylon

Applications

Medical Product Components

Medical Packaging

Suppliers

Styrene-Acrylonitrile

Applications

Medical Product Components

Medical Packaging

Suppliers

Other Engineered Medical Plastics

Applications

Medical Product Components

Medical Packaging

Suppliers

VI. MARKETS

General

Medical Packaging

Pharmaceutical Packaging

Pharmaceuticals Outlook

Plastics Demand

Other Medical Packaging

Medical Product Components

Surgical Appliances & Supplies

Surgical Appliance & Supply Outlook

Plastics Demand

Surgical & Medical Instruments

Surgical & Medical Instrument Outlook

Plastics Demand

Research & Diagnostic Products

Research & Diagnostic Products Outlook

Plastics Demand

X-Ray & Electromedical Equipment

X-Ray & Electromedical Equipment Outlook

Plastics Demand

Other Medical Products

Other Medical Product Outlook

Plastics Demand

VII. INDUSTRY STRUCTURE

General

Industry Participants

Resin Producers

Processors

Merger & Acquisition Activity

Marketing Strategies

Channels of Distribution

Research & Development

Competitive Strategies

Cooperative Agreements

Company Profiles

Advanced Elastomer Systems LP, see Exxon Mobil

Advanced Polymers Incorporated

AlphaGary Corporation, see Rockwood Specialties

Group Incorporated

Apogent Technologies Incorporated, see Fisher

Scientific International Incorporated

Arkema, see Total SA

Atofina, see Total SA

BASF AG

Bayer AG

BP plc

BP Solvay Polyethylene North America, see BP plc

& Solvay SA

Celanese Corporation

Chevron Phillips Chemical Company LLC

Colorite Polymers, see Tekni-Plex Incorporated

Cook Composites & Polymers, see Total SA

CYRO Industries

Dow Chemical Company

Dow Corning Corporation

DSM NV

DuPont (EI) de Nemours

Eastman Chemical Company

Equistar Chemicals LP

Exxon Mobil Corporation

Ferro Corporation

Fisher Scientific International Incorporated

Formosa Plastics Group

GE Plastics, see General Electric Company

General Electric Company

Georgia Gulf Corporation

(continued on next page)

Greenway Plastics Industries Corporation, see

Kloeckner Pentaplast GmbH & Company KG

Helix Medical Incorporated

Honeywell International Incorporated

In Health Technologies, see Helix Medical

Kloeckner Pentaplast GmbH & Company KG

Lanxess, see Bayer AG

Liberty Medical Supply Incorporated, see

PolyMedica Corporation

LNP Engineering Plastics Incorporated, see General

Electric Company

Nalge Nunc International, see Fisher Scientific

International Incorporated

OxyVinyls LP, see PolyOne Corporation

Partech LLC, see Fisher Scientific International

Incorporated

PolyMedica Incorporated

PolyOne Corporation

Rockwood Specialties Group Incorporated

Saint-Gobain

Solvay SA

SolVin, see BASF AG and Solvay SA

Tekni-Plex Incorporated

Teknor Apex Company

3M Company

Ticona, see Celanese Corporation

Total SA

West Pharmaceutical Services Incorporated

Westlake Chemical Corporation

LIST OF TABLES

SECTION I -- EXECUTIVE SUMMARY

Summary Table

SECTION II -- MARKET ENVIRONMENT

1 Macroeconomic Environment

2 Demographic & Household Trends

3 Acute Conditions by Type

4 Chronic Conditions by Type

5 National Health Expenditures

6 Medical Providers by Type

7 Patient Procedures by Type

8 Medical Product Shipments

9 US Plastic Supply & Demand

SECTION III -- OVERVIEW

1 Medical Plastic Demand by Resin Type & Market

SECTION IV -- COMMODITY MEDICAL PLASTICS

1 Commodity Medical Plastic Demand by Application

2 Commodity Medical Plastic Demand by Resin

3 Polyvinyl Chloride Demand in Medical Markets

4 PVC Demand in Medical Product Components

5 PVC Demand in Medical Packaging

6 Polypropylene Demand in Medical Markets

7 Polypropylene Demand in Medical Packaging

8 Polypropylene Demand in Medical Product Components

9 Polystyrene Demand in Medical Markets

10 Polystyrene Demand in Medical Packaging

11 Polystyrene Demand in Medical Product Components

12 High Density Polyethylene Demand in Medical Markets

13 HDPE Demand in Medical Packaging

14 HDPE Demand in Medical Product Components

15 Low Density Polyethylene Demand in Medical Markets

16 LDPE Demand in Medical Packaging

17 LDPE Demand in Medical Product Components

18 Acrylic Demand in Medical Markets

19 Acrylic Demand in Medical Product Components

20 Acrylic Demand in Medical Packaging

21 Polyurethane & Other Commodity Plastic Demand in Medical Markets

22 Polyurethane & Other Commodity Plastic Demand in Medical Product Components

23 Polyurethane & Other Commodity Plastic Demand in Medical Packaging

SECTION V -- ENGINEERED MEDICAL PLASTICS

1 Engineered Medical Plastic Demand by Application

2 Engineered Medical Plastic Demand by Resin

3 Thermoplastic Polyester Demand in Medical Markets

4 Thermoplastic Polyester Demand in Medical Packaging

5 Thermoplastic Polyester Demand in Medical Product Components

6 Polycarbonate Demand in Medical Markets

7 Polycarbonate Demand in Medical Product Components

8 Polycarbonate Demand in Medical Packaging

9 Thermoplastic Elastomer Demand in Medical Markets

10 Thermoplastic Elastomer Demand in Medical Product Components

11 Thermoplastic Elastomer Demand in Medical Packaging

12 Acrylonitrile-Butadiene-Styrene Demand in Medical Markets

13 ABS Demand in Medical Product Components

14 ABS Demand in Medical Packaging

15 Nylon Demand in Medical Markets

16 Nylon Demand in Medical Product Components

17 Nylon Demand in Medical Packaging

18 Styrene-Acrylonitrile Demand in Medical Markets

19 SAN Demand in Medical Product Components

20 SAN Demand in Medical Packaging

21 Other Engineered Plastic Demand in Medical Markets

22 Other Engineered Plastic Demand in Medical Product Components

23 Other Engineered Plastic Demand in Medical Packaging

SECTION VI -- MARKETS

1 Markets for Medical Plastics

2 Medical Packaging Plastics

3 Pharmaceutical Packaging Markets for Plastic

4 Other Medical Packaging Markets for Plastics

5 Medical Product Components Applications for Plastics by Type

6 Surgical Appliance & Supply Markets for Plastics

7 Surgical & Medical Instrument Markets for Plastics

8 Research & Diagnostic Product Markets for Plastics

9 X-Ray & Electromedical Equipment Markets for Plastics

10 Other Medical Product Component Markets for Plastics

SECTION VII -- INDUSTRY STRUCTURE

1 Selected Acquisitions & Divestitures

2 Selected Cooperative Agreements

LIST OF CHARTS

SECTION II -- MARKET ENVIRONMENT

1 US Plastic Demand, 2003

SECTION IV -- COMMODITY MEDICAL PLASTICS

1 Commodity Medical Plastic Demand by Resin, 2003

SECTION V -- ENGINEERED MEDICAL PLASTICS

1 Engineered Medical Plastic Demand by Resin, 2003

SECTION VI -- MARKETS

1 Medical Plastic Demand by Market, 2003