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Pharma/Fine Chemicals Roundup – August 30
8:18 AM MDT | August 30, 2011 | By DEEPTI RAMESH
SIEGFRIED SWINGS TO PROFIT IN FIRST HALF
Siegfried (Zofingen, Switzerland) reported a net profit of SF2.4 million ($3 million) in the first six months of 2011, compared with a net loss of SF2.3 million in the year-ago period. Sales increased 28%, to SF173.8 million. The performance was largely due to significant increase in active pharmaceutical ingredients (API) sales, Siegfried says.
“Despite the demanding economic environment that characterized the first six months of 2011, the Siegfried group returned to profitability and continued to make progress with strategic and operational priorities,” the company says. As Siegfried responded early to the unpredictable developments in the currency markets by implementing corresponding measures, the negative effects of a strong Swiss franc on operating profits were kept within a tolerable range,” the company adds.
“Our sales growth, achieved in difficult economic environment, underlines our competitive strength. Combined with our strong balance sheet, we are in an excellent position to take the necessary steps to create a foundation for sustainable growth and increased profitability,” says Rudolf Hanko, Siegfried CEO.
The group reported strong growth for the first half of 2011 due to the significant increase in API sales, and exclusive synthesis contributed the major share, with over 50% in growth, contributing over 60% of total revenues, Siegfried says. Controlled substances, including APIs for analgesics and opiates, also continue to grow, especially in the European market. These products contributed about 20% of sales during the first half of 2011, Siegfried says.
BASF INCREASES PRICES OF PHARMA EXCIPIENTS AND ACTIVE INGREDIENTS BY 10%
BASF says that it will increase the sales prices globally for all pharmaceutical excipients and generic active pharmaceutical ingredients (APIs) by 10%, effective September 1, 2011. Due to the continued rise in costs of raw materials, energy and labor this price increase has become necessary, BASF says.
The price increase will affect the entire excipients portfolio including all binders, disintegrants, coatings, solubilizers, and solvents. The affected generic API portfolio includes products like ibuprofen, caffeine, and pseudoephedrine.
ASHLAND COMPLETES ISP PURCHASE
Ashland has completed its $3.2-billion acquisition of International Specialty Products (ISP). ISP will be integrated into Ashland’s Aqualon functional ingredients unit, more than doubling the size of Ashland’s highest-margin business. The combined unit will be called specialty ingredients. Approximately half of Ashland’s overall revenues will now be derived outside of North America, the company says. “This defining transaction is expected to be immediately accretive and will significantly expand our position in higher-margin, higher-growth end markets, including personal care, pharmaceutical, food and beverage and energy,” says James O’Brien, Ashland chairman and CEO. John Panichella, president of the new Ashland specialty ingredients business, is leading the integration team.
GRANULES TO EXPAND API AND INTERMEDIATE CAPACITY
Chemicals maker Granules India says it will expand manufacturing capacity for oral solid dose, APIs and drug intermediates in a bid to better meet the needs of clients. Granules spokesman Vijay Ramanavarapu told in-Pharmatechnologist.com that: “We are increasing our solid oral dosage capacity from 6 billion doses to 18 billion doses by adding new equipment in our existing facility [in Gagillapur]”.
Ramanavarapu said that: “We are adding equipment for two new workshops here. The first new workshop will have an additional capacity of 8,000 tons and will be finished by March 2012. The second new workshop has a capacity of 1,200 tons and was just completed last month. “
He went on to say that the move follows analysis by Granules’ operational excellence team and is part of a wider project has seen the firm increase metformin and guaifenesin API capacity by 25 per cent and 20 per cent, respectively, over the last year.
“We are expanding in order to meet the needs of our existing customers and also due to our strong business development pipeline” Ramanavarapu continued, adding that Granules is seeing strong demand for key chemicals across the value chain.