Pharma/fine chemicals roundup—5 November 2013
12:14 AM MST | November 5, 2013 | By DEEPTI RAMESH
Specialty ingredients business boosts Lonza’s third-quarter performance
Lonza, in its business update announcement for the third quarter, says that its overall business performance remained on track and that the company’s specialty ingredients market segment performed well despite a weak recreational water market. Lonza says that the previously announced transformational activities are also fully on track. “In our half-year update, we announced a number of important decisions regarding our footprint and portfolio. Our organization is working intensively on the implementation of these numerous transformational activities which will help increase our productivity, reduce our complexity and transform our business portfolio,” says Richard Ridinger, CEO of Lonza. “2013 is for Lonza a true transformational year, and I’m happy to see the new organization taking shape,” Ridinger says. As a result, Lonza reduced its headcount by 744 in 2013, to 10045, at the end of September.
Granules India acquires API manufacturer; opens API research facility
Granules India (Hyderabad, India), a producer of active pharmaceutical ingredients (APIs), intermediates, and formulations, says it has signed an agreement to acquire API manufacturer Auctus Pharma (Hyderabad). The purchase price is about 1.2 billion Indian rupees ($19 million), Granules India tells CW. The acquisition is expected to be completed within the next three to six months. The product portfolio of Auctus includes 12 APIs — in several therapeutic categories such as antihistaminic, antihypertensive, antithrombotic, and anticonvulsant —, and key intermediates of those APIs, Granules India says. The acquired business and employees will initially operate as a separate division within Granules India. Granules India also announced that it has opened a new R&D facility at Hyderabad, which will focus on full-scale generic API development.
Teva CEO resigns; API sales fall
Teva Pharmaceutical Industries (Petaḥ Tiqwa, Israel) says that president and CEO Jeremy Levin has stepped down. The board of directors has named Eyal Desheh, Teva's chief financial officer, to fill the role on an interim basis, effective immediately, and it has formed a committee that will begin to search for a permanent successor. The active pharmaceutical ingredient (API) business of Teva reports a 16.9% fall in sales in the third quarter of 2013, compared with the year-ago period, to $162 million. For the nine-month period ended 30 September, the API business reports a 10.9% fall in sales, compared with the first nine months of 2012, to $529 million. Teva has the largest API business in the world in terms of sales.
Cambrex reports sales jump on branded APIs
Cambrex reported its third quarter results—with net income falling 8.6% year-over-year (YOY), to $17 million. The company reported income from continuing operations of 20 cts/share compared with 7 cts/share in the year-ago quarter. This is slightly below analyst estimates of 21 cts/share, according to Thomson Reuters (New York). Sales of $78 million were up 30% YOY and include a favorable foreign exchange benefit. Sales increased primarily due to higher sales of a large phase-3 product and certain branded active pharmaceutical ingredients (APIs), partially offset by lower sales of generic APIs and products using the company’s drug delivery technology, the company says.
Cambridge Major and AAIPharma appoint CEO of merged company
Cambridge Major Laboratories (CML; Germantown, WI), a producer of pharmaceutical intermediates and active pharmaceutical ingredients (APIs); and AAIPharma Services Corp. (Wilmington, NC), a provider of pharmaceutical analytical testing, product development, and manufacturing services, say that they have appointed Patrick Walsh, the CEO of AAIPharma, as the CEO of the merged company. On 2 October, CML and AAIPharma announced they would merge by the end of October. “The client response to our merger announcement has been very positive,” Walsh says. CML was acquired by private equity firm American Capital (Bethesda, MD) for $212 million late last year, and American Capital announced last week that it has committed $391 million to the merged company.
API business of Dr. Reddy’s reports fall in sales
The pharmaceutical services and active ingredients (PSAI) business of Dr. Reddy’s Laboratories (Hyderabad, India) reports a 19% fall in sales in the company’s fiscal second quarter, ended 30 September, compared with the year-ago quarter, to 6.4 billion Indian rupees ($103 million), because of fewer launch molecules to customers during the quarter, Dr. Reddy’s says. Earnings figures for the PSAI business have not been disclosed. Europe accounted for about 37% of the company's PSAI sales in the quarter; North America accounted for 15%; India accounted for 17%; and the rest of the world accounted for 31%, Dr. Reddy’s says.
Cambrex and Dow open facility in Sweden for producing Dow’s HPMCAS products
Cambrex (East Rutherford, NJ) and Dow Chemical say they have opened a previously announced new facility at the Cambrex Karlskoga (Karlskoga, Sweden) site for manufacturing Dow’s hydroxypropyl methylcellulose acetate succinate (HPMCAS) for drug solubility enhancement. Cambrex and Dow, earlier this year, executed an agreement for Cambrex to contract manufacture Dow’s HPMCAS, and, as part of this agreement, the new plant was constructed at Karlskoga. The facility completion and start of the HPMCAS product validation marks a year-long journey that began with a solubilization partnership between Dow and Bend Research (Bend, OR), announced in October 2012, Cambrex and Dow say. Starting early 2014, Dow will be able to commercially supply solubility-enabling excipients.
Ranbaxy’s API business reports fall in sales
The active pharmaceutical ingredient (API) business of Ranbaxy Laboratories (Gurgaon, India) reports sales of 1.47 billion Indian rupees ($24 million) in the third quarter, ended 30 September, compared with sales of Rs1.82 billion in the year-ago quarter. Profits for the API business were not disclosed.
DSM opens biopharmaceutical plant in Australia
DSM Pharmaceutical Products (Parsippany, NJ), the custom manufacturing and technology business of DSM, says it has opened the previously announced new cGMP facility at Brisbane, Australia, for biopharmaceutical contract manufacturing. Plans for the facility were announced in 2010. The facility was built in partnership with Biopharmaceuticals Australia (Brisbane) with cooperation from the Queensland and Australian governments and provides cGMP, mammalian cell-culture contract manufacturing services from process development through to commercial manufacturing. DSM Biologics, a business unit of DSM Pharmaceutical Products, operates the Brisbane facility.
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