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Pharma/Fine Chemicals Roundup – August 21
8:59 AM MDT | August 21, 2012 | By DEEPTI RAMESH
CAMBREX SIGNS API MANUFACTURING DEAL, TO EXPAND PRODUCTION CAPACITY
Cambrex (East Rutherford, NJ) says it has entered into an agreement to supply an active pharmaceutical ingredient (API) for a customer's Phase 3 program during 2013–2014. The name of the customer was not disclosed. Cambrex, under this nonexclusive supply arrangement, will manufacture and deliver Phase 3 and prelaunch quantities of this product candidate. The agreement is expected to contribute over $20 million to Cambrex’s revenues in 2013—and potentially even more in 2014, depending on regulatory developments, the time of completion of Cambrex's capacity expansion related to this opportunity, and meeting key product delivery milestones, the company says. In order to meet the demand under the new agreement, Cambrex will invest capital over the remainder of 2012 and in early 2013 to expand its multipurpose large scale assets, the company says.
PERRIGO'S API BUSINESS REPORTS RISE IN SALES, OPERATING PROFITS
The API business segment of Perrigo (Allegan, MI) reported a 4.3% rise in sales in its fiscal fourth quarter, ended June 30, 2012, compared with the year-ago period, to $38.4 million. Fourth-quarter operating profits for the API business tripled, to $18 million. The performance of the API segment was favorably impacted by a commercial agreement with a customer to supply a generic product that was launched in the fourth quarter, and which unexpectedly received a 180-day exclusivity status, Perrigo says.
FUJI PHARMA ACQUIRES CONTRACT MANUFACTURING FIRM FROM DKSH
Distribution company DKSH (Zürich, Switzerland) and Fuji Pharma (Tokyo) say they have entered into an agreement, under which Fuji Pharma will acquire OLIC (Bangpa-In, Thailand), the largest pharmaceutical contract manufacturer in Thailand, from DKSH. Financial terms of the deal were not disclosed. OLIC was founded in 1961, and it provides contract manufacturing services for pharmaceutical, health care, confectionaries, and supplementary industries. The company employs over 850 people, and had sales of about baht1 billion ($32 million) in 2011. “The OLIC contract manufacturing facility is a heritage, noncore activity of DKSH, and is more optimally positioned in the hands of Fuji, which has significant expertise in this sector. DKSH will be investing the proceeds into our core business,” says Joerg Wolle, president and CEO of DKSH.
“OLIC fits perfectly with our existing operations and business in Japan and in Asia, and we are committed to investing and growing OLIC even more,” says Hirofumi Imai, president and CEO, Fuji Pharma.
CHINA TO BLACKLIST MANUFACTURERS OF SUBSTANDARD DRUGS
The Chinese government says that manufacturers of unsafe drugs will be blacklisted, starting October, as part of nationwide efforts to improve drug safety. Information about manufacturers and those found responsible for severe violations of relevant laws will be included in a blacklist, according to rules issued by the State Food and Drug Administration (Beijing), the government says. The blacklist will be posted on government websites for public supervision. The blacklist will include those involved in the production and sale of counterfeit or inferior drugs. The regulations also call for the revocation of licenses granted to companies on the blacklist, as well as a 10-year suspension of their operations, the government says.
SANDOZ PERMANENTLY CLOSES API DEVELOPMENT UNIT IN INDIA
Sandoz (Holzkirchen, Germany), the generic pharmaceuticals subsidiary of Novartis (Basel, Switzerland) has permanently shut its API development facility at Kalwa, near Mumbai, last month, due to financial pressure, say Indian press reports. The facility employed 50 people. The API development activities carried out at the facility will be moved to the company’s centers in Europe, reports say.
FORMER LONZA CHIEF TO JOIN ISRAEL CHEMICALS AS CEO
Fertilizer and specialty chemicals company Israel Chemicals (ICL; Tel Aviv) says its board of directors has appointed former Lonza CEO Stefan Borgas to be ICL’s new president and CEO, effective September 20, 2012. Lonza, earlier this year, fired Borgas following a series of weak financial results. Borgas will succeed Akiva Mozes, ICL's president and CEO for the past 13 years, who will retire from the company on the same date following 37 years of service at ICL. The appointment of Borgas followed an eight-month search process carried out by a special CEO search committee with the professional assistance of a global executive search firm, ICL says.
TOSOH TO INCREASE PRICES OF ETHYLENEAMINES IN ASIA
Tosoh says it will increase the prices for all grades of its ethyleneamines sold in Asia, effective September 1, 2012, or as contract terms allow. Ethyleneamines and their derivatives are used in various applications such as pharmaceuticals, agchem intermediates , epoxy hardeners, wet-strength resins for paper, and chelates. The prices for ethylenediamine will increase by 30%, for diethylenetriamine by 20%, and for other homologues by 10%, Tosoh says.
AESICA FORMS PARTNERSHIP WITH UNIVERSITY OF BRADFORD
Aesica Pharmaceuticals (Newcastle upon Tyne, U.K.), a provider of APIs, formulations, and custom synthesis, says it has entered into a partnership with the Centre for Pharmaceutical Engineering Science at the University of Bradford (Bradford, U.K.), which will enable the team at Bradford to utilize the GMP capabilities and assets at Aesica, while Aesica will benefit from the center’s extensive research facilities. “We provide GMP contract manufacturing services to six other universities, but this partnership is particularly important, as it is mutually beneficial. While the team at Bradford has development expertise in several key approaches and, as such, can evaluate the viability of compounds presented by virtual and small pharma organizations, our GMP expertise is crucial to take the compounds into clinical trials, which is vital,” says Paul Titley, managing director/formulation development at Aesica. “By working with such organizations at an early stage, we would hope to cement long-term development and manufacturing partnerships and expedite the leap from concept to commercialization with a clear and proven route to market. In addition, the facilities at the Centre for Pharmaceutical Engineering Science will enable us to further enhance our overall formulation development service offering, which will add value to our existing clients."