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Pseudoephedrine Production Declines
November 3, 2005

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News Summary

Germany's BASF, the world's leading maker of pseudoephedrine, is laying off workers and cutting production as countries crack down on those who use the chemical to manufacture illicit methamphetamine.

The Oregonian reported Oct. 31 that BASF has let go 15 percent of the workers at its biggest pseudoephedrine factory, citing a 17-percent decline in orders from the U.S., the world's leading consumer of the drug. As U.S. states curtail the sales of cold medicines and other drugs containing pseudoephedrine and ephedrine, manufacturers are turning to an alternative substance, phenylephrine, which cannot be diverted to methamphetamine production.

BASF said the switch to phenylephrine "will continue to reduce the demand for pseudoephedrine." Pfizer, for example, has reported good success with its new Sudafed PE, made with phenylephrine.

BASF's announcement was greeted with cheers among U.S. law-enforcement officials. "Our intent was to get rid of pseudoephedrine," said Rob Bovett, legal counsel for the Oregon Narcotics Enforcement Association. "Slowly but surely get rid of it. Because we knew once we got it off the shelf, the manufacturers would reformulate with phenylephrine or something else."

Most ephedrine and pseudoephedrine is made by a few companies in Germany, India, China, and the Czech Republic.

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