Pharma/fine chemicals roundup—22 January
7:24 AM MST | January 22, 2013 | By DEEPTI RAMESH
Mitsui & Co. increases stake in Indian API firm
Mitsui & Co. (Tokyo) says it acquired 16 January an additional 27.29% stake in Arch Pharmalabs (Mumbai), a manufacturer of pharmaceutical intermediates and active pharmaceutical ingredients (APIs), for 3.7 billion Indian rupees ($68.6 million). The acquisition has increased Mitsui & Co.'s stake in Arch Pharmalabs to 31.96%. Mitsui & Co. had initially acquired a stake in Arch Pharmalabs in September 2010. Arch Pharmalabs, which was established in 1999, employs about 2,826 people and recorded sales of Rs15.2 billion in the fiscal year ended 31 March 2012. Mitsui & Co. began utilizing the services of Arch Pharmalabs to provide contract manufacturing organization services to Japanese pharmaceutical manufacturers in 2005, and in 2010, acquired a 5.25% stake in Arch Pharmalabs by subscribing to a third-party allocation of its shares. Prior to this additional equity stake acquisition, Mitsui & Co.'s equity stake decreased from 5.25% to 4.67% because Arch Pharmalabs had increased its capital, Mitsui & Co. says.
BASF acquires 97.7% shares of Pronova BioPharma
BASF says that about 97.7% of all shares of Pronova BioPharma (Lysaker, Norway), a pioneer in the fields of researching, developing, and manufacturing omega-3 fatty acids, have been tendered to BASF during the offer period. BASF, in November 2012, reached an agreement with Pronova to make a recommended voluntary public takeover offer to Pronova’s shareholders and offered to pay 12.50 Norwegian kroner in cash for each Pronova share. Earlier this month, BASF increased its offer price to NK13.50/share. The extended offer period for BASF’s voluntary cash offer to shareholders of Pronova, ended on 18 January. The enterprise value, based on all outstanding shares and including all financial liabilities, would be NK4.99 billion ($892 million), BASF says.
All regulatory approvals required for completion of the offer have been obtained, and the next step in the acquisition process will be the settlement of the offer within the following 14 days; the transfer of shares to BASF and the payment of the offer price will take place on closing. BASF says it is setting up a compulsory acquisition process in order to acquire the remaining shares after closing. BASF expects to finalize the transaction within the next few weeks.
China surveys API exports
The State Food and Drug Administration (SFDA; Beijing), the drug-safety watchdog in China, will survey exports of active pharmaceutical ingredients (API) by chemical pharmaceutical manufacturers, the Chinese government says. The SFDA has asked API manufacturers to report names, license numbers, and major export destinations of their APIs; and if they have a European certificate for good manufacturing practice. Certain chemical companies in China can sell their chemical ingredient products as APIs without approval from drug safety authorities, thereby putting drug safety under possible risk, the Chinese government says. China is the world's biggest exporter of APIs, the Chinese government says.
Teijin partners with InCube Labs to accelerate health-care business
Teijin says it has signed a strategic partnership agreement with InCube Labs (San Jose, CA), a life science research lab, to accelerate Teijin's health-care business development. Teijin, as part of the agreement, will invest in a company affiliated with InCube Labs. InCube Labs will help Teijin to define strategic growth opportunities for its health-care business. Initiatives will include competitive evaluation of Teijin technologies, analysis of key market characteristics and regulations, and provision of information to help Teijin identify promising business partners and M&A opportunities. Teijin plans to integrate its materials and health-care technologies to facilitate its expansion into fields including regenerative medicine and tissue repair, drug delivery systems, and locomotive syndrome.
Daiichi Sankyo and Ranbaxy to integrate operations in Thailand
Ranbaxy Laboratories (Gurgaon, India) and Daiichi Sankyo (Tokyo) say that they will integrate their business operations in Thailand, to maximize synergies, and the integrated business will begin operation on 1 April. Daiichi Sankyo acquired a majority stake in Ranbaxy in 2008. Daiichi Sankyo and Ranbaxy, under the new plan, would integrate the management of Daiichi Sankyo’s subsidiary in Thailand, Daiichi Sankyo Thailand (DSTH) and Ranbaxy’s Thailand subsidiary, Ranbaxy Unichem Co. Ltd. (RUCL). The new representative of the proposed integrated entity will be Suthas Thongprasert, who presently heads DSTH. DSTH mainly focuses on innovative pharmaceuticals, and RUCL markets generic medicines.
DSM signs license agreement with Amgen
DSM Pharmaceutical Products (Parsippany, NJ), the business unit of DSM that provides contract manufacturing and development services to the pharma and biopharma industries, says it has signed a nonexclusive license agreement with Amgen (Thousand Oaks, CA) for access to DSM's proprietary XD high cell density process patents. Financial terms were not disclosed.