IHS Chemical Week


Pharma/Fine Chemicals Roundup – August 16

7:32 AM MDT | August 16, 2011 | By DEEPTI RAMESH


The global pharmaceutical contract manufacturing revenues will reach $64.07 billion in 2016, says a recent report by business information company Visiongain (London). Manufacturing of finished dosage forms will drive revenue growth, with the market expected to grow at a CAGR of 8.7% between 2010 and 2016. Revenues for this industry will more than double from 2011 to 2021. Active pharmaceutical ingredient (API) manufacturing remained the largest market sector in 2010, accounting for 71.1% of the total market. API manufacturers in India and China will achieve increasing demand for their services, the report says. Demand for generic and highly potent APIs will drive growth in this market from 2011 to 2021, the report adds.

“The global pharmaceutical contract manufacturing industry will benefit from a continued move to strategic outsourcing by the pharmaceutical industry,” says Richard Lang, pharmaceutical industry analyst. “The industry will look more to long-term relationships with a few selected contract manufacturing organizations (CMO) as the decade goes on. Becoming a full-service CMO or specializing in a niche area will best allow contract manufacturers to take advantage of these strategic partnerships.”
Between 2011 and 2021, demand for contract manufacturing services will continue to come from developed market-based pharmaceutical companies, the report says. The U.S. accounted for 42% of market demand in 2010. Pharmaceutical companies will outsource increasing amounts of manufacturing in this decade, as companies focus on activities such as R&D and marketing. Growth in the biotechnology market will also provide a great opportunity for CMOs.


Ampac Fine Chemicals (AFC; Rancho Cordova, CA), a subsidiary of American Pacific (Las Vegas, NV), says it has signed an agreement with Chimerix (Durham, NC), to validate at commercial scale the manufacturing process for the active pharmaceutical ingredient (API) in Chimerix’s antiviral drug candidate, CMX001, which is being developed for the prevention and treatment of smallpox. Chimerix will provide the investigational drug product under a contract with the U.S. government agency, biomedical advanced research and development authority.
The validation campaign will be conducted in AFC's recently completed second semi-works unit at Rancho Cordova. “This facility offers a remotely operated process plant which can safely run hydrogenations and hazardous chemical processes, while containing reactants and products with occupational exposure limits. The unit is ideally suited for the production of APIs required by companies like Chimerix,” says Larry Zeagler, executive director of product management at AFC.


Aceto (Port Washington, NY) says it has appointed Nicholas Shackley as the international senior v.p./active pharmaceutical ingredients (API). Aceto markets and distributes pharmaceutical intermediates and active ingredients, finished dosage form generics, nutraceutical products, agricultural protection products and specialty chemicals.
Nicholas Shackley “is assuming responsibility for what has been a robust core activity for the company and we are anticipating that with his more expansive and diverse set of experiences, we will be able to enlarge our base of business in this most dynamic facet of the pharmaceutical markets,” says Albert Eilender, chairman and CEO of Aceto.
For the past 3 years, Nicholas Shackley had P&L responsibility with BASF’s pharmaceutical ingredients and service business unit as their v.p./North America.

Daily News and Analysis (DNA), India

Production at the Srikakulam unit of Dr Reddy’s Laboratories has been halted after about 600 workers struck work in the last four days seeking better wages.
This is the second US Food and Drugs Administration (FDA)-approved facility of the company that’s in some sort of trouble currently. Sale of drugs from another unit in Mexico was banned by the FDA on July 7 this year.
Talks have been on between the workers’ union and the Dr Reddy’s management for some time now, but the latest one on August 11 failed to come up with a solution, two persons familiar with the development said.
While the company is calling the strike illegal, workers plan to intensify the stir from Tuesday.
The unit, located at Pydibheemavaram in Ranasthalam, Srikakulam, manufactures active pharmaceutical ingredients (APIs) with a capacity of 570 kilo litres a year.
“Most of the employees at the unit have been with the company for the last 15 years and their wages have been an issue for some time now. The company is violating certain government orders on equal wages for equal work. The contract workers are being paid lesser wages compared with the permanent employees,” alleged Govinda Rao, a labour union leader.

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